you achieve maximum philanthropic impact.
While Americans may be inclined to make charitable contributions in the form of cash, the majority of U.S. household wealth is held in non-cash assets.
of wealth is in non-cash assets
Federal Reserve Q3 2020 Financial Accounts of the United States
Contributions of appreciated non-cash assets held more than one year can be an important part of your charitable giving and wealth management plans.
of Schwab Charitable donor-advised fund account contributions in calendar year 2020 were non-cash assets*
As of December 31, 2020
Many donors find they’re able to give up to 20% more to charity because of the potential to eliminate capital gains tax.
Contributing appreciated non-cash assets held more than one year can unlock additional funds for charity in two ways.Minimize taxes, maximize impact
- Potentially eliminate the capital gains tax you would incur if you sold the assets yourself and donated the proceeds.
- Claim a fair market value charitable deduction, if you itemize deductions, and pass on that savings in the form of more giving.
Individuals heavily invested in highly appreciated assets may consider contributing some of those assets to reduce the positions in their portfolio and rebalance their portfolio.
Those looking to diversify the sources of their wealth may want to contribute a portion of their privately held business interests.
Those with a large taxable estate may consider contributing part of their holdings to reduce the tax liability for their heirs.
Business owners with a liquidation event
on the horizon may want to donate a
portion of their ownership stake.
- Open an account and contribute cash or non-cash assets held more than one year.
- Potentially eliminate the capital gains tax you would incur if you sold the assets and donated the proceeds.
- Claim a fair market value charitable deduction, if you itemize deductions.
- Invest assets in your account for potential tax-free growth with the potential of having even more to give to charity.
- Choose from a lineup of investment pools or appoint an advisor to manage a custom portfolio.
- Rebalance investments at any time.
- Give to the charities of your choice by recommending grants of $50 or more.
- Grant at any time online or through the Schwab mobile app.
- Schedule one-time grants or set up recurring grants for long-term, ongoing support.
Realize tax benefits; give more; maximize charitable giving impact; make a difference
Contribute appreciated assets, held for more than one year, to the donor-advised fund at any time; invest for potential growth
Charities potentially get more substantial donations and long-term support
For more than 20 years, Schwab Charitable has helped donors, advisors and charities understand the specific considerations with converting appreciated non-cash assets into tax-smart, high-impact charitable contributions.