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Schwab Charitable Reports Record Assets and Grants in Fiscal Year 2012

Schwab Charitable, one of the nation’s largest and fastest growing national donor-advised fund organizations, reported both record charitable assets under management and record annual grants in its Fiscal Year 2012. As of June 30, 2012, Schwab Charitable’s assets under management were $3.16 billion and grants to charities for the year totaled $524 million.

“Despite uncertainty in the broader economic environment, we are thrilled that we have set these new records, a demonstration of our clients’ commitment to charitable causes and a reflection of the high levels of satisfaction with their charitable accounts,” says Kim Laughton, President of Schwab Charitable. “We are also very proud to have hit a significant milestone - Schwab Charitable has now surpassed the $3 billion mark for grants since inception, and what’s more, these grants have benefited more than 62,000 charitable organizations.”

A donor-advised fund allows investors to contribute cash or appreciated assets to a charitable account to realize the greatest possible tax benefits and then support their favorite charities over time. Serving a wide range of philanthropic investors, Schwab Charitable’s account sizes range from $5,000 to more than $450 million.

Expanded Investment Solutions

In an effort to provide donors and their investment advisors with a wider range of investment solutions, Schwab Charitable also announced that it is adding a new Short-Term Income Pool to its investment choices, and is also making changes to the underlying mutual funds for five of its existing investment pools later this summer.

“We are committed to an open architecture investment platform, and have one of the largest selections of non-proprietary funds of any national donor-advised fund”, says Barbara Benware, Vice President of Investment Oversight. “The new pool and underlying funds will enhance diversification and provide donors with exposure to additional asset classes and strategies.”

Schwab Charitable’s investment pools will include:

  • Four asset allocation pools for donors looking for a diversified investment strategy with one investment choice
  • Nine individual asset class pools for donors looking for a customized investment strategy

The underlying mutual fund for the new Short-Term Income Pool, the Principal Short-Term Income Fund (PSHIX), is a diversified fund chosen in part for its strong historical performance and relatively low volatility when interest rates fluctuate.*

Continued Commitment to Independent Investment Advisors

Schwab Charitable was the first national donor-advised fund organization to allow investment advisors to manage a custom investment strategy for charitable accounts valued at $250,000 or more.

Consistent with its commitment to serving advisors and the charitable needs of their clients, Schwab Charitable has announced improvements to the online interface that allows investment advisors to manage their clients’ charitable accounts using the same platform – Schwab Advisor Center – that they use to manage other accounts at Schwab. The enhancements will include the addition of online forms and applications, enhanced views of clients’ contribution history and details regarding grant activity.

“Helping our high net worth clients manage their assets in a tax-advantaged way, and simultaneously enabling them to support the charities and causes they are connected to, allows us to deepen the value we are able to bring to them as their wealth advisors,” says James Knight, COO of Vista Wealth Management. “We are seeing continued interest from clients in finding simple ways to activate their charitable intentions and the donor-advised fund is a route of choice for increasing numbers of our clients, and for our advisory business as a whole.”

Looking forward, Schwab Charitable expects continued success in Fiscal Year 2013, as investors continue to look to donor-advised funds as a simple and tax-smart way to support their favorite charities.

About Schwab Charitable

Created as a national donor-advised fund with a mission to increase charitable giving nationwide, Schwab Charitable has received over $6 billion in contributions and has facilitated over $3 billion in grants to charities on behalf of its donors since inception. Serving a wide range of philanthropic investors, account sizes range from $5,000 to over $450 million. Schwab Charitable has been a pioneer in enabling investment advisors to manage the investments of donor-advised accounts and remains a leading provider of such professionally managed accounts. Schwab Charitable also offers a private foundation conversion service for private foundations considering donor-advised funds as a complementary or alternative charitable vehicle. For more information, visit www.schwabcharitable.org.

*Past performance cannot guarantee future results.

Donors should carefully consider information contained in the prospectus for the registered underlying mutual funds, including investment objectives, risks, charges and expenses. You can request a prospectus by calling the Fund at (800) 746-6216. Please read the prospectus carefully before making contributions or recommending investment of funds

Market fluctuations may cause the value of investment funds shares held in a donor-advised account to be worth more or less than the value of the original contribution to the funds.

The tax information herein is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab Charitable recommends consultation with a qualified tax advisor or CPA.

Professionally-managed accounts are available only through independent investment advisors working with Schwab Advisor ServicesTM , a business segment of The Charles Schwab Corporation serving independent investment advisors and includes the custody, trading and support services of Charles Schwab & Co., Inc.. While donors may recommend an advisor, the Fund must approve the recommendation. Advisors must meet certain eligibility requirements and adhere to Fund fee and investment guidelines. You may request a copy of the investment guidelines by calling us at (800) 746-6216.

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.

©2012 Schwab Charitable Fund. All Rights Reserved. (0712-4910)

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