The increases in giving and in the number of grants is a testament to people’s generosity and to their recognition that donor advised funds provide a tax efficient, strategic method of setting aside money for charity so that it is available when needed.
“Our mission is to make as much money available as possible for charity,” Kaynor said.
Schwab Charitable also reported that “between Giving Tuesday on November 28 and December 31 – a period many consider to be the heart of giving season – donors recommended approximately 250,000 grants to charity totaling $1.5 billion,” which also represented records in the history of Schwab Charitable.
Schwab Charitable works with the Center for Disaster Philanthropy, which maintains information on vetted charities whenever disaster hits anywhere in the world
“Awareness of donor-advised funds has significantly grown in the last several years, and financial advisors are key to educating clients on how this tool can help maximize charitable giving, while providing a tax-smart giving solution. Schwab Charitable works with more than 3,700 advisors who play an important role in helping clients create a charitable giving plan that is incorporated into their broader approach to wealth planning, helping donors to navigate charitable legacy planning and involve family members in giving, Schwab Charitable said.
Advisors can help clients evaluate clients’ assets to determine what to give to charity. In 2023, 64% of contributions to Schwab Charitable were non-cash assets, such as appreciated stock or private business interests. Contributing appreciated non-cash assets that have been held more than one year to a donor-advised fund can increase the amount available for charities by as much as 20% by potentially eliminating a donor’s capital gains tax liability on the assets.