Financial advisors often work with clients using donor advised funds. Almost two thirds of grants made through Schwab Charitable were made by donors who employed financial advisors. “One way advisors help increase donors’ giving power is by facilitating donations of non-cash assets, such as publicly-traded stock or private business interests. Throughout 2022, 60% of contributions to Schwab Charitable were non-cash assets. Donating non-cash assets directly to charity can increase the amount available for charity by up to 20% by allowing donors to eliminate capital gains tax liability on the assets,” Schwab Charitable explained.
Schwab Charitable provides a number of resources to make it easier for advisors to guide their clients’ philanthropy so they can add value to their services, and other resources to help nonprofits hone their fund raising, Kaynor added.
Schwab Charitable has developed a Schwab Charitable Giving Guide; a Nonprofit Fundraising Toolkit for charities; a series of materials created in cooperation with the National Center for Family Philanthropy to help engage family members in giving; a tax savings calculator; and a charitable donation calculator.
In recent years, advisors have made charitable planning an integral part of their practice and a key component of wealth management conversations,” Julia Reed, national director of charitable consulting at Schwab Charitable, said in a statement. “Their value has never been more apparent than today. They continue to help clients navigate a challenging financial landscape to maximize their impact on charities.”
More increases in dollars and grant numbers should be seen in future months and years. “There is nothing to indicate our donors’ generosity will change,” Kaynor said.