Simplify Your Giving with a Donor-Advised Fund at Charles Schwab

Simplify Your Giving with a Donor-Advised Fund at Charles Schwab

April 11, 2024

Are you passionate about giving back but want more flexibility and control over your charitable contributions? A Donor-Advised Fund (DAF) at Charles Schwab might be the perfect solution. Here's a breakdown of the process to set up your DAF with us:

Step 1: Select Successors and Beneficiaries

  • Successor Grantor: This person takes over the management of your DAF if you become incapacitated. You can designate someone you trust, and this can be changed later.
  • Grant Recipients: While not required initially, consider listing charities you support. These can be updated anytime.

Step 2: Funding Your DAF

During a follow-up meeting, we'll discuss how to contribute to your DAF:

  • Transferring Assets: Stocks, mutual funds, or even cash can be easily transferred to your DAF. We'll work with you to identify the most suitable assets for contribution.
  • Contribution Amount: The ideal amount depends on your tax situation and future giving goals. We'll analyze your income, filing status, and projected needs to determine the most tax-advantageous contribution for the current year and potentially future years. Remember, unused deductions can be carried forward for five years.

Step 3: Investment Management

Once your assets are transferred, we'll manage them within your DAF according to your preferences. Here are some options:

  • Socially Responsible Investing: Invest in a diversified portfolio that aligns with your values.
  • Selling Assets & Granting: Sell your contributed assets and distribute funds to your chosen charities promptly.

Step 4: Streamlined Grantmaking

We'll simplify the process of recommending grants to your favorite charities. You can recommend grants at any time, and we'll handle the distribution.

Key Consideration

Irrevocable Contributions: Once contributed, assets cannot be retrieved.

Benefits of a Charles Schwab DAF:

  • Tax Advantages: Receive an immediate tax deduction for your contribution in the year it's made, regardless of whether you grant the funds to charity right away.
  • Flexible Giving: Make grants to qualified charities on your own timeline.
  • Investment Management: Benefit from our expertise in managing your DAF assets.
  • Simplified Grantmaking: We'll handle the administrative tasks of making grants to your chosen charities.

Ready to Get Started?

Contact us today to discuss your charitable giving goals and explore if a Charles Schwab DAF is the right fit for you. We'll guide you through the setup process and ensure your philanthropic journey is efficient and impactful.