Schwab Charitable saw a continuation of increased giving for 2020, particularly for Covid-19 related causes and social justice issues, according to Kim Laughton, president of Schwab Charitable.
It is an increase Laughton said Schwab hopes will continue into the New Year.
“People started giving earlier last year than usual, and continued through the year,” Laughton said in an interview yesterday. Many of the donations went to health-care and social causes that were in need because of the pandemic and to social justice issues.".
Schwab Charitable donors gave to nearly 100,000 charities in 2020 through 830,000 grants totaling $3.7 billion. Compared to 2019, dollars granted to charities increased 35% and the number of grants to charities rose 39%, Schwab said in its annual report.
“In a year full of challenges and uncertainty, I am moved by the resolute generosity displayed by Schwab Charitable donors,” Laughton said in a statement. “Their commitment to supporting those most impacted by the Covid-19 pandemic and other crises we faced last year has truly been inspiring.”
Seventy-four percent of donors supported at least one new charity in 2020 in addition to organizations they had supported in the past. Sixty percent of grants went to organizations within a donor’s own state, Schwab said.
In a survey of Schwab Charitable donors conducted in January, 62% said they increased the amount they gave to charity in 2020 and 49% said they increased the frequency of grants compared to prior years. Donors recommended grants to 13% more charities than last year. In addition, 56% said they are planning to increase the amount of money they grant to charity over the next 12 months and 44% said they plan to support a new charity this year
The top charities supported by donors in 2020 included Feeding America, Doctors Without Borders, Salvation Army, Planned Parenthood and Campus Crusade for Christ.
A strategy that can enable donors to give more to charity is to give appreciated non-cash assets held for more than one year directly to charities, Schwab said. This generally eliminates the capital gains tax they would have otherwise incurred if they sold the assets first and donated the proceeds, potentially increasing the amount available for charity by up to 20%. In 2020, approximately 60% of contributions to Schwab Charitable were in the form of non-cash assets, including publicly traded securities, restricted stock and private business interests.
“A strategic approach to charitable planning will help donors achieve maximum impact with their philanthropy,” Fred Kaynor, vice president of business development and marketing at Schwab Charitable, said in a statement. “There is tremendous value to donors and the charities they support when they incorporate charitable giving as a component of their broader financial, estate, and tax plans.”
“Donors this year took the opportunity to set a new, higher floor for their giving and we hope those increases will continue,” Laughton said.