Schwab Charitable Donors Give a Record $5 Billion to Charities in Fiscal Year 2023

Giving from Schwab Charitable donor-advised funds reaches historic levels despite turbulent market

Schwab Charitable™, one of the largest national providers of donor-advised funds and other philanthropic resources, reports that its donors increased giving in fiscal year 2023 (ended June 30, 2023), exceeding $5 billion in grants to charity. Donors surpassed 1 million individual grants to charities for the first time in the organization’s history and supported more than 120,000 charities throughout the year. The total dollar amount granted to charities represents an 8% increase, or nearly $350 million more for charities compared to the prior fiscal year.

“I’m truly inspired by the generosity of our donors over the last twelve months and proud to share how they put their charitable dollars to work in record-breaking amounts this year,” said Sam Kang, President of Schwab Charitable. “Donor-advised funds have proven to be a resilient tool for donors, who were able to increase their support of nonprofit organizations despite economic volatility in the last year.”

Schwab Charitable donors sustain support locally and globally

According to Giving USA’s annual report on philanthropy, total giving in the United States declined in 2022, only the fourth time in four decades that donations did not increase year over year. This decline is due in part to a sustained period of economic uncertainty and corresponding market volatility. Donor-advised funds can provide a consistent source of funding for charities, particularly during such challenging times, as contributions may have been made previously and those resources have already been set aside for charity. Schwab Charitable donors were able to increase giving in fiscal year 2023 and calendar year 2022.

Individuals across the country stepped up – Schwab Charitable donors granted to charitable organizations in all 50 states, and 87% of donors granted in their own state, through 568,000 grants to local causes and organizations.

Schwab Charitable is proud to continue working with The Center for Disaster Philanthropy (CDP) to share a list of pre-vetted charities supporting immediate relief and recovery efforts for national and global crises as they occur. In fiscal year 2023, donors gave over $108 million to organizations recommended by the CDP.

“One of the many benefits of the donor-advised fund is that donors can contribute to their account during more financially stable times and invest those assets for potential growth while they’re in the account, thus having readily deployable funds to grant each year regardless of the broader environment,” said Fred Kaynor, Managing Director of Relationship Management, Marketing and Strategic Partnerships at Schwab Charitable. “This has allowed Schwab Charitable’s donors to step up in times of greater need throughout the most recent fiscal year, maximizing their support of the causes that are most important to them, as well as communities in need in their own backyard and internationally.”

During the 12-month period, 81% of donors granted to charities they previously supported, and 68% of donors granted to new charities they have not previously supported.

Advisors guide clients and support family giving

Schwab Charitable’s consultative approach and comprehensive offering empower advisors to help clients maximize their giving power and incorporate charitable giving into their wealth management plans. Schwab Charitable now works with nearly 3,500 advisors, a 9% increase in advisor relationships compared to the previous year, who advised 77% of Schwab Charitable’s donor account assets in fiscal year 2023.

One way advisors may work with donors is by helping them evaluate which assets to give, including considering non-cash assets such as publicly traded stock or private business interests. More than half of all contributions to Schwab Charitable in fiscal year 2023 were non-cash assets. Donating appreciated non-cash assets directly to charity, including to a donor-advised fund, can increase the amount available for charities as much as 20% by potentially eliminating a donor’s capital gains tax liability on the assets.

Offering support on family giving and legacy planning can also help advisors meet the needs of clients, particularly as money moves across generations. According to Charles Schwab’s 2023 RIA Benchmarking Study¹, 88% of advisors offer charitable planning to their clients, one of the top offered services that can help deepen client relationships and meet client needs. Advisors who work with multiple client generations on family giving plans and legacy planning will help differentiate their practice as Americans navigate the impending wealth transfer, which by some estimates will see nearly $12 trillion donated to charities. Schwab Charitable recognizes that younger donors continue to get more involved in family philanthropy, and is proud to partner with the National Center for Family Philanthropy to provide resources to help navigate philanthropy and involve family members in charitable planning in a more meaningful way.

“Armed with the guidance and resources that Schwab Charitable provides, advisors are poised to introduce clients, including the rising impact-focused generation, to simple, effective charitable giving,” said Julia Reed, National Director of Charitable Consulting at Schwab Charitable. “This forward-thinking approach is what Schwab Charitable is designed for, to help donors seamlessly give to causes close to them for generations.”

Educational resources and tools empower philanthropy ecosystem

In conjunction with offering consultative support, Schwab Charitable continues to update the tools and educational resources it provides to help advisors, donors, and charities have maximum impact. Resources offered in fiscal year 2023 include:

• The award winning Schwab Charitable Giving Guide
• The Nonprofit Fundraising Toolkit and other resources for charities
• Inspiring donor stories and donor tutorials, and advisor stories of impact
• Comprehensive Advisor Resource Center featuring tools to deepen client relationships
• Articles on how to utilize a donor-advised fund with tax planning, with an IRA, and with a bunching strategy

By offering a simple, efficient, and tax-smart giving solution and continuing to invest in innovative technology and giving platforms, Schwab Charitable encourages sustained charitable giving. With their donor-advised fund account at their fingertips, Schwab Charitable donors granted 12 times on average throughout the fiscal year, and 35% of grants were set up as recurring gifts to charities, a 20% increase from the prior year.

About Schwab Charitable

Schwab Charitable’s mission is to increase giving in the U.S. with donor-advised funds and philanthropic tools and resources that make charitable giving tax-smart, simple and efficient. We offer tools, guidance and relationships that empower donors to incorporate charitable planning into their everyday lives and make a bigger difference in the world. Since our founding in 1999 as an independent 501(c)(3) public charity, Schwab Charitable donors have granted more than $29 billion to more than 235,000 charities. Visit schwabcharitable.org for more information.

Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund™, an independent nonprofit organization, which has entered into service agreements with certain affiliates of The Charles Schwab Corporation. Schwab Charitable Fund is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 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.

Schwab Charitable does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

©2023 Schwab Charitable Fund. All rights reserved. (0723-30YE)

¹ Results for all firms with $250 million or more in AUM. Past performance is not an indicator of future results. 2023 RIA Benchmarking Study from Charles Schwab, fielded January to March 2023. Study contains self-reported data from 1,300 firms. Participant firms represent various sizes and business models categorized into peer groups by AUM.

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