Schwab Charitable donors give record amount despite rocky market

investmentnews.com:

Schwab Charitable revealed Wednesday that its donors increased their giving by more than $5 billion during its 2023 fiscal year, which ended June 30, even in the face of a volatile stock market.

The provider of donor-advised funds said donors surpassed 1 million individual grants to charities for the first time in the organization’s history and supported more than 120,000 charities throughout the year. Schwab Charitable, which works with nearly 3,500 advisors, said the total dollar amount granted to charities represents an 8% increase, or nearly $350 million more for charities compared to the prior fiscal year.

“I’m truly inspired by the generosity of our donors over the last twelve months and proud to share how they put their charitable dollars to work in record-breaking amounts this year,” Sam Kang, president of Schwab Charitable, said in a statement.

Kang added that DAFs have proven to be a resilient tool for donors, who were able to “increase their support of nonprofit organizations despite economic volatility in the last year.”

According to Giving USA’s annual report on philanthropy, total giving in the United States declined in 2022, only the fourth time in four decades that donations did not increase year over year.

Donors who use DAFs are uniquely positioned to maintain their giving in the long term since the funds are designed to be countercyclical. The money in a DAF is already committed to charity, so even when stocks are down and donors may not be able to contribute as much, they can continue to grant money from their DAF.

Renae Ransdell, a wealth advisor at SageView Advisory Group, said she’s a big fan of using DAFs for the tax planning benefits, especially donating low-basis stock.

“Another benefit is in