more than one year, could be great donations.
Most of America’s wealth is held in appreciated, non-cash assets, and many donors don’t know the potential benefits of contributing these assets to charity.
of donations are in the form of cash or checks
The 2016 U.S. Trust Study of High Net Worth Philanthropy
Appreciated investments could be an important and beneficial part of a donor’s overall philanthropic wealth management strategy.
of contributions to Schwab Charitable were non-cash assets
As of December 31, 2018
Many donors find they’re able to give up to 20% more to charity because of the potential to eliminate capital gains tax.1
Assets that have appreciated in value can be among the most tax-advantaged items to contribute to charity for donors who itemize their deductions and may potentially result in even more resources for the donor’s favorite causes.Minimize taxes, maximize impact
- Claim a same-year fair market value (FMV) deduction, if you itemize
- Potentially eliminate capital gains tax, increasing some donors’ ability to give up to 20% more to their favorite causes.2
Individuals heavily invested in a security may
consider contributing some of those assets to
reduce the position in their portfolio.
Those looking to diversify wealth may
want to contribute a portion of their
private business interests.
Those with significant wealth and/or a
taxable estate may consider contributing
part of their holdings.
Business owners with a liquidation event
on the horizon may want to donate a
portion of their ownership stake.
- Donate appreciated non-cash assets to account
- Schwab Charitable liquidates the assets into funds for charity
- Qualify for a FMV deduction, if itemizing
- Potentially eliminate capital gains tax
- Invest funds via a core or professionally managed account
- Rebalance investments at any time
- Gain the potential for growth over time, which allows for bigger grants
- Recommend grants to any 501(c)(3) charity
- Grant immediately or over time
- Grant as often as you like and set up recurring grants for long-term, sustainable 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 20 years, Schwab Charitable has helped many donors, advisors and charities understand specific circumstances and considerations for converting appreciated assets into tax-effective charitable contributions via a donor-advised fund account.