Schwab expands client options for charitable giving

Schwab Charitable, the wealth management firm’s provider of donor-advised funds, launched new features to enhance client access to charitable giving, including a socially responsible fixed income pool, and the elimination of minimums on initial and subsequent contributions to donor-advised fund accounts.

Why should we care?
Donor-advised funds allow clients to provide grants to a charity over a period of years. Schwab functions as a robo-adviser (or hybrid adviser) for the charitable contributions, automating the end-to-end processing and reporting. Schwab’s move to eliminate account minimums is likely based on a desire to enhance access. The socially responsible investing option may cater to the needs of younger investors, who reportedly keep a close eye on the social impact of their investment dollars. Other donor-advised fund providers include Fidelity, Vanguard, and the National Philanthropic Trust. In May, Schwab Charitable, which has $17B in assets, reported that from February to May, $680M was granted from Schwab Charitable donor-advised funds, and about $114M was earmarked for COVID-19 relief.