The other day I ran into a colleague bubbling over with enthusiasm.  She had just opened a Schwab Charitable™ donor-advised account and couldn’t have been more pleased.  “Why,” she asked, “did it take me so many years to do this?  This is absolutely the best financial move I made all year.”

Now I’ve long been a fan of charitable accounts, but this got my attention. My colleague was especially excited because she had transferred appreciated stock into her new account.  Her savings in capital gains had allowed her to increase her contribution – making the transaction that much sweeter.

Thinking back to my days as a broker in the Atlanta branch (I guess that was quite a few years ago), I recall how difficult it was to send stock to your favorite charity.  You had to get the proper DTC number from the charity, write a letter of instruction to your broker, and then follow up, follow up, follow up.  Tons of paperwork! Now it’s just a matter of pointing and clicking.  A transaction that used to take days now takes minutes.

But there are lots of other benefits to having a donor-advised account.  For one, it’s online, which is a huge help in keeping you organized.  Front and center you can see your giving history – how much you gave to whom, and when. It’s a snap to recommend a grant to the same charity.

They’re also really cost-effective.  The fees are low so more of your money goes to the charity. 

But in my view the best endorsement of all is that donor-advised accounts make giving more accessible to more people.  Yes, Schwab Charitable does a world-class job of supporting major donors.  But it also does a world-class job of supporting the philanthropy of thousands of smaller donors. 

Like my colleague, you don’t have to be a multimillionaire to reap the tremendous benefits of Schwab Charitable. The minimum to open an account is $5,000, and then you can recommend individual grants as small as $50. And the satisfaction of giving?  Immeasurable.

Information provided is intended to be educational in nature and is not intended to provide legal or tax advice. Where specific advice is necessary or appropriate, please consult a qualified tax or legal advisor.

Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization, and Schwab Charitable Trust Services, a limited liability company owned by Schwab Charitable Fund.  The Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.

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