Schwab Charitable’s donor-advised fund account holders recommended some $2.7 billion in grants to charity in 2019, a 26% year-over-year increase in dollars granted and nearly double the amount granted in 2016.
Donors made more than 600,000 grants to 89,400 charities last year, a 24% increase over 2018, Schwab Charitable reported.
“I have been truly inspired by the generosity of our donors throughout Schwab Charitable’s 20-year history,” Schwab Charitable’s president said Kim Laughton said in a statement. “Strong market performance in 2019 encouraged many donors to reach new heights of generosity by making tax-smart contributions of appreciated assets.”
According to the report, many donors were able to capitalize on robust market growth in 2019 to fund their charitable goals by donating appreciated investments and assets.
Last year, 69% of contributions to Schwab Charitable were in the form of noncash assets, such as publicly traded securities, restricted stock and privately held business interests.
The report said that after two years under the new tax law, many donors better understand how they can effectively incorporate charitable giving into their tax planning to address changes in their tax situation while achieving maximum impact with their philanthropy.
“Bunching” contributions continues to be a popular option for many donors. By concentrating charitable contributions in some years, donors who might otherwise take the standard deduction can take advantage of the itemized charitable deduction while still being able to benefit from the increased standard deduction in other years.
And by contributing appreciated, noncash assets held for a year or more to a DAF, donors can increase funds for charity in two ways.
First, they avoid the capital gains tax they would incur if they sold the assets themselves and donated the proceeds. This may increase the amount available for charity by up to 20%, according to the report.
Two, donors receive a charitable deduction for the current calendar year, and may choose to pass on that savings in the form of more giving.