Contributing appreciated NON-CASH ASSETS to charity

Here's why your most valuable investments can help you achieve maximum philanthropic impact.

Consider where most of your wealth is

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.

89% of wealth is in non-cash assets

Federal Reserve Q3 2020 Financial Accounts of the United States

Be more strategic

Contributions of appreciated non-cash assets held more than one year can be an important part of your charitable giving and wealth management plans.

60% of Schwab Charitable donor-advised fund account contributions in calendar year 2020 were non-cash assets^*

As of December 31, 2020

Understand the advantages

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.

20%

Many donors find they're able to give up to 20% more to charity because of the potential to eliminate capital gains tax.

Read about the specific considerations with different types of non-cash assets

Recognize the best time to donate non-cash assets

Individual

Concentrated position

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.

Estate planning

Those with a large taxable estate may consider contributing part of their holdings to reduce the tax liability for their heirs.

Business owner

Diversification

Those looking to diversify the sources of their wealth may want to contribute a portion of their privately held business interests.

Windfalls

Business owners with a liquidation event on the horizon may want to donate a portion of their ownership stake.

Maximize your philanthropic impact with Schwab Charitable

Using a Schwab Charitable donor-advised fund account for your giving is as easy as 1-2-3.

1 Contribute

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.

2 Invest

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.

3 Grant

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.

The result: tax-smart giving that's good for the donor and the cause

Donors

Realize tax benefits; give more; maximize charitable giving impact; make a difference

Account

Contribute appreciated assets, held for more than one year, to the donor-advised fund at any time; invest for potential growth

Causes

Charities potentially get more substantial donations and long-term support

Donor-advised fund

We help turn your assets into impact.

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.

Let Schwab Charitable make it easy for you.

*Schwab Charitable accepts illiquid assets for contribution on a case-by-case basis and some of these assets are liquidated by a third party. In calendar year 2020, 1.4% of contributions were non-cash assets liquidated by a third party, received by Schwab Charitable as cash, and reported here as non-cash assets.

A donor's ability to claim itemized deductions is subject to a variety of limitations depending on the donor's specific tax situation. Consult your tax advisor for more information.

Gifts of appreciated property can involve complicated tax analysis and advanced planning.

Professionally managed accounts are available only through independent investment advisors working with Schwab Advisor Services™, a business segment of The Charles Schwab Corporation serving independent investment advisors and including the custody, trading, and support services of Charles Schwab & Co., Inc. While donors may recommend an advisor, Schwab Charitable must approve the recommendation. Advisors must meet certain eligibility requirements and adhere to Schwab Charitable fee and investment guidelines. You may request a copy of the guidelines by calling us.

Schwab Charitable Fund is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), 170(b)(1)(A)(vi) of the Internal Revenue Code. Contributions made to Schwab Charitable Fund are considered an irrevocable gift and are not refundable. Please be aware that Schwab Charitable has exclusive legal control over the assets you have contributed. Although every effort has been made to ensure that the information provided is correct, Schwab Charitable cannot guarantee its accuracy. This information is not provided to the IRS.

Schwab Charitable™ is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.

(0221-1D34)