How To Designate Charitable Gifts In Your Schwab Donor Advised Account

Log into your Schwab Charitable Gift Account (also known as a Donor Advised Fund) at http://www.schwabcharitable.org

If you have other Schwab accounts, you may be presented with a list of all of your accounts. Find the one designated a “Charitable Gift Account”, e.g.

Charitable Gift Account

Click on this account to begin viewing it. Schwab provides a great deal of information and statistics on your charitable giving. We will only focus on how to execute a gift in this blog post. Click on the top tab “Grant to Charity”.

Grant To Charity

The first step is to find your charity. (The process becomes much easier once the charity is in your gift history.) You can search for your charity either by name or by Tax ID Number. Remember that the official name of a charity is often not the same as the name you may know it by. For example, here in Charlottesville, the official name of the Center for Christian Study is “University Christian Ministries”. If you search under the common name a similar ministry in Richmond Virginia will be the only one found.

Step 1 - Find Your Charity

If your charity is among those listed, the second step is to click on “Select this Charity” next to the appropriate ministry. The odds are that someone else has given to the same charity and it is in the database. Only if for some reason your charity is not listed or there are too many search results should you use the buttons at the bottom.

Step 1b - Charity Search Results

In Step 2a you are given information about the charity selected in order to verify that you have found the correct charity. In this case I know that the charity’s address is at 128 Chancellor Street so I know I have the correct charity.

Step 2a - Confirm Charity Information

Since we have found the correct charity, I will click on “Continue”. Now I am allowed to provide grant details, including if the grant is to be used as part of a tithe or capital campaign. We will leave the charity with flexibility by designating the gift to be used wherever it is needed most:

Step 2b - Provide Grant Details

After completing the grant details, click “Continue”. This will bring up the screen where you indicate the dollar amount of the grant and from which investments the money should be taken. We are going to give $6,000 and take the money from funds in the same percentages as the account is currently allocated:

Step 2c - Indicate Grant Amount

You can have your Schwab Donor Advised Fund invested in a target asset allocation. And, you can allocate the grant in the same percentages as the current asset allocation balance. Click on “Continue” to bring up the grant verification screen:

Step 3 - Grant Verification

At this point you have to certify that you understand Schwab’s policies and also that you understand that no one gets a tax deduction for this gift. (You already got your tax deduction when you transferred appreciated securities into your donor advised fund.) Check the two certifications and “Submit the Grant Recommendation”. Finally, you will receive a grant recommendation confirmation:

Step 4 - Grant Recommendation Confirmation

Schwab Charitable Donor Advised Funds make the process easier for transferring a collection of appreciated stock once and then giving many smaller gifts throughout the year.

 

About the author

Matthew J. Illian, CFP®, AIF®
Matthew J. Illian, CFP®, AIF®

Matthew Illian is part of the Investment Committee at Marotta Wealth Management, Inc. and specializes in small businesses consulting and retirement planning. He is devoted to his lovely wife and three rambunctious boys all under the age of six. Favorite mountain biking trails: Forest Hill Park

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