How Advisors Helped Clients Break Charitable Giving Records Last Year

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2017 shattered giving records. Strong markets and the prospect of tax reform drove total charitable giving past $400 billion for the first time ever. Grants in fiscal year 2018 reached $1.9 billion at Schwab Charitable, one of the largest national providers of donor-advised funds and other philanthropic services, where nearly 76% of account assets are associated with a financial advisor.

Financial advisors used several strategies with philanthropic clients to help them give more, with more impact. One of the most common was helping clients donate appreciated assets instead of cash, which can result in a up to 20% more that can be passed on to charity, increasing the client’s impact. Advisors also helped clients track donations to maximize tax benefits, strategically time gifts when they are needed most, and invest charitable dollars for potential growth. Larger accounts at Schwab Charitable may recommend a financial advisor to create a customized investment strategy that may include publicly traded securities, alternative investments and socially and environmentally responsible mandates. Since Schwab Charitable’s inception, investment growth has enabled donors to give an additional $3 billion.

This year, advisors continue to deepen their relationship with clients and encourage giving through charitable planning. In just the first half of 2018, Schwab Charitable donors have recommended 40% more in grants than the same period last year.

§ Amount will vary depending on the type, holding period, fair market value and cost basis of the asset contributed and the donor’s specific tax situation. Schwab Charitable™ does not provide specific individualized legal or tax advice. Consult your tax advisor for more information.

* Schwab Charitable financial data January – August 2018

Schwab Charitable’s fiscal year 2018 ran from July 1, 2017, through June 30, 2018.

Schwab Charitable is the name used for the programs and services of Schwab Charitable Fund™, an independent nonprofit organization recognized as a tax-exempt public charity as described in Sections 501©(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code, which has entered into service agreements with certain subsidiaries of The Charles Schwab Corporation.

©2018 Schwab Charitable Fund. All Rights Reserved. REF (1018-XXXX)

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