Donors on the Schwab Charitable network have significantly boosted their philanthropic giving, in part due to the Covid-19 pandemic and the war in Ukraine, according to the firm.
Schwab says donors increased charitable giving by 27% to over $4.7 billion in fiscal year 2022, which ended on June 30. In all, the donors supported 117,000 charities through 993,000 grants, which was 24% more than in fiscal year 2021, according to the firm.
When it comes to Ukraine, Schwab Charitable donors have recommended over $50 million in grants in support of people impacted by the war, the company says.
“We've made ‘emergency’ donations to multiple entities who are on the ground in Ukraine with humanitarian assistance and relief efforts, as well as entities that are helping to manage surging refugee populations,” said one Schwab Charitable donor, identified as Charles R., according to the company. “As much as possible, we're trying to do this not by diverting grants that would have gone to other hot spots and areas of need, but rather, adding to our account with new contributions.”
In addition, Schwab Charitable donors have recommended over 50,000 grants totaling more than $200 million to charities working to combat the fallout from the Covid-19 pandemic, and a further $7.7 million in grants supporting relief organizations working in Afghanistan, according to the firm.
Schwab also notes the “critical role” played by financial advisors in charitable giving. Advisors oversee two-thirds of account assets for Schwab Charitable donors, according to the firm.
“Advisors are uniquely positioned to help donors give more efficiently through tax-smart contributions and strategies to maximize their impact on those in need," Fred Kaynor, managing director of business development, marketing and strategic partnerships at Schwab Charitable, said in a statement.
Sixty-one percent of contributions to Schwab Charitable in fiscal year 2022 were in the form of publicly traded securities, restricted stock and private business interests and other non-cash assets, the company says. Doing so may help donors eliminate capital gains taxes they would have otherwise faced if selling the assets first while bolstering the amounts they can give to charity by up to 20%, according to Schwab.
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