Frequently Asked Questions

1. Is the Charitable Gift Fund Part Of Charles Schwab & Co., Inc.?

Schwab Charitable Fund is an entirely separate entity from The Charles Schwab Corporation and its affiliates. However, Charles Schwab and its affiliates provide certain investment management, administrative, and recordkeeping services to the Fund. For accounts not using Charitable Asset Management, investment choices are based on tax-free investment pools managed by Charles Schwab and its affiliates. (top)

2. Can My Charles Schwab Investment Center Open A Charitable Gift Account?

Because the Fund is a separate legal entity from Charles Schwab, a Charles Schwab Investment Center cannot open a Charitable Gift Account. Forms must be mailed to Schwab Charitable Fund so that we have your original signatures on file. (We do offer fill-and-print applications to expedite the process.) (top)

3. Can I Link My Schwab Brokerage Account And My Charitable Gift Account?

No. Schwab Charitable Fund is a separate and distinct organization from Charles Schwab & Co., Inc. (top)

4. What Role Can My Investment Manager Have?

If your Charitable Gift Account balance is $250,000 or more, you may take advantage of our Charitable Asset Management feature, which allows you to nominate your investment advisor to actively manage the assets of the account and invest in a broad range of securities, including individual stocks, bonds, and mutual funds.

For accounts not using the Charitable Asset Management feature, you are welcome to name your investment advisor as a Nominator. Nominators can recommend the rebalancing of assets among the investment pools and recommend grants on your behalf. They may also receive key correspondence on the account — such as quarterly account statements and contribution receipts — if you so request. (top)

5. What Are the Contribution and Balance Requirements?

Individuals, as well as organizations or businesses, can open an account with a minimum of $5,000. After the initial contribution, you may make contributions of $500 or more at a time. The Contribute to a Charitable Gift Account (PDF) form is available online. (top)

6. What Types Of Statements Will I Receive?

We will mail you quarterly statements that itemize the contributions made into your account and list the value of your account. This letter also serves as your receipt for tax purposes. If you recommend a grant to charity, you will also receive a copy of the letter we mail to the charity with the grant check, once the grant is approved. (top)

7. Can I Plan For A Successor on My Account?

Yes. We encourage our donors to see their account as a vehicle with which to leave a lasting legacy of giving. You may name one or more designated individuals as the successor(s) on your account, to take over as donor-advisors when you are no longer able to, or no longer want to.

Alternatively, you may designate a specified charity as the beneficiary, and the account will be distributed to the charity. Accounts with no successor designated at the time of the original donor’s death will be contributed to the Philanthropy Fund. This fund is managed by the Board of Directors. The Philanthropy Fund makes charitable grants and sponsors educational programs. Donors may also contribute directly to the Philanthropy Fund at any time. (top)

8. How Can I Get My Children Involved?

If your children are of legal age, you can get them involved immediately by listing them as donor-advisors on your account. In that capacity, they can recommend grants to charities and will receive copies of all statements and newsletters. If you would like to name your children to succeed you as donor-advisor to the account after your death, you can name them as successors of the account. (top)

9. What Types Of Assets Can I Contribute?

You can contribute cash and publicly traded securities, including stocks, most mutual-fund shares, and bonds. Some restricted or privately held stock may be accepted. Cash contributions must be made in U.S. dollars and delivered by check or wire only. Contribution Forms are available online.

Schwab Charitable Fund is also able to accept proceeds from tax-deductible contributions of real estate, private equity investments, or tangible personal property.1 Call us for more information at 800-746-6216. (top)

10. Can I Contribute Assets From An IRA?

The Pension Protection Act of 2006 includes a provision allowing individuals to contribute directly to charity from an IRA, but not an account with a donor-advised fund. One may, however, designate a Charitable Gift Account as the beneficiary to a portion or all of an IRA. We encourage consultation with a qualified tax attorney to assess the tax consequences of utilizing an IRA for charitable giving. (top)

11. How Do You Determine The Fair Market Value Of My Contribution?

Fair Market Value (for purposes of the charitable contribution deduction) is determined on the date that contributions are received by the Fund. In the case of contributions of stock, Fair Market Value is the average of the high and the low for the day that the assets were received by the Fund. In the case of contributions of mutual funds, Fair Market Value is the closing price on the date of receipt. Securities are typically liquidated the following business day after receipt, so the Fair Market Value for tax purposes may be different from the amount of sales proceeds credits to your Charitable Gift Account. (top)

12. How Long Will It Take For My Contribution to Appear in My Account?

Typically, your account is open and funded within 24 hours from the receipt of your contribution. On some occasions (particularly if assets are being transferred from a financial institution other than Charles Schwab & Co., Inc.), the process can take from two to six weeks. If the assets are coming from another financial institution and you are concerned about timing, we recommend you contact your broker and encourage the firm to expedite the transfer. (top)

13. Will I Receive A Receipt for Tax Purposes?

Yes. Contribution statements are mailed for each contribution. You will also receive an annual summary in January. (top)

14. Can I Invest In Investments Other Than Schwab Funds?

Yes, for Charitable Gift Accounts of $250,000 or more, you may elect the Charitable Asset Management feature and recommend an independent investment advisor to provide investment management for the account. The Fund must approve the advisor to manage the assets in your account. Assets may be invested in a wide variety of publicly traded securities, including stocks, bonds, and mutual funds, in any combination. (top)

15. Do You Sponsor A Pooled Income Fund?

No. At this time we have chosen to focus our efforts on ensuring the simplicity and efficiency of our donor-advised fund. (top)

16. Will I Receive Any Income?

No. All account earnings accrue within your Charitable Gift Account, thereby increasing the amount that you can recommend for grants to public charities. The earnings in the Fund do not increase any tax deduction you can claim for contributing to the account, since you receive your deduction at the time of contribution. Distributions from the account — whether of principal or earnings — can be made only to qualified charitable organizations. (top)

17. What Are The Fees/Costs?

For information on fees, please review Section 10 of the Program Policies. (top)

18. How Do I Recommend A Grant?

You can recommend a grant online once you have logged into the Donor Center, or you can fill out the Nominate a Grant to Charity (PDF) form and fax or mail it to us. (top)

19. What Does It Mean to “Recommend” Grants?

Tax laws require that your charitable contribution must be irrevocable and unconditional in order for you to receive the associated tax benefits. Any assets contributed to the Fund belong to the Fund and you have relinquished control of them. However, your role as donor-advisor to those funds does allow you to recommend how the funds are invested and distributed. (top)

20. Do You Have A List Of Approved Charities?

Grants can be made to any IRS-approved public charity. Approved organizations are U.S.-based organizations that qualify as tax-exempt under Section 501(c)(3) of the Internal Revenue Code and are public charities as defined by Section 509(a) of the code. Schwab Charitable Fund website provides you research through CharitySearch, from GuideStar®, a database of over 1 million IRS-registered 501(c)(3) non-profit organizations. Note: All grant recommendations are subject to approval of the Fund. (top)

21. Is There A Minimum Grant Amount?

$100 is the minimum grant amount. (top)

22. When Will The Charity Receive The Grant?

If we have worked with the charity before, the check will ordinarily be issued within five business days. If we have not granted to the charity before, we perform due diligence on your behalf. In this case the check is typically issued within 10 business days. (top)

23. Will The Grant Check Have My Name On It?

The check will bear the name of Schwab Charitable Fund; however, the accompanying letter will recognize the donor or account name (per your instructions) who recommended the particular grant. You may also remain anonymous if you wish. (top)

24. Will I Receive Confirmation When A Grant is Made?

You will receive a copy of the letter sent to the charity along with the grant check. If for any reason the grant was unable to be issued, we will contact you by phone as quickly as possible. (top)

25. Why Would A Grant Be Declined?

The Fund takes great care to comply with all laws governing charitable gift giving and all I.R.S. guidelines affecting donor-advised funds. The Fund will not approve any grants that:

• Are directed to a charity not based in the United States;
• Fulfill a donor’s pre-existing pledge to an organization;
• Provide benefit to the donor or individual;
• Support lobbying, political campaigns or other political activities;
• Support a charitable event that would constitute a quid-pro-quo arrangement (e.g., tickets for a fundraiser dinner.) (top)

26. How Do I Access My Account Online?

• Go to http://www.schwabcharitable.org
• Enter your Social Security Number or user ID, as well as your password, in the Donor Login box in the upper right corner.
• If you do not have your Password, please call us at (800) 746-6216. (top)

27. What if I Forget My Password?

Please call us at (800) 746-6216 and we will be happy to assist you. (top)

28. Is My Password Protected?

Yes. Your personal information is only accessible to you and Schwab Charitable Fund. (top)

29. What if I’m Having Trouble With The Site?

We recommend that you use Internet Explorer 6.0 or higher. If you use Apple as your platform, you must use Internet Explorer. The site will not operate with Netscape or Safari. If your browser settings are compatible and you are still experiencing trouble, please contact us at (800) 746-6216. (top)