Leading national donor-advised fund adds charitable remainder trust
offering to expand selection of strategic philanthropic options for donors
and advisors
SAN FRANCISCO, Oct. 24 /PRNewswire-FirstCall/ -- Schwab Charitable(TM),
which operates one of the country's largest and fastest growing
donor-advised funds, today announced the launch of Charitable Trust
Services, establishing a suite of services that gives donors a new way to
support charities and gives independent investment advisors a simple way to
expand their wealth management offering to encompass income-producing
charitable vehicles
Charitable Trust Services allows independent investment advisors who
custody with Schwab Institutional to professionally manage the investments
their clients have donated to a charitable remainder trust. Schwab
Charitable has designed its Charitable Trust Services to be as easy and
simple to use as possible -- similar, in that regard, to the donor-advised
fund it developed years ago. This unique service makes Schwab Charitable
one of the only providers of professionally-trusteed charitable trusts to
offer investment management participation by independent advisors.
Charitable Trust Services is paired with the Schwab Charitable
Fund(TM), a leading national donor-advised fund, under the newly-named
Schwab Charitable, making it easier for individual donors to strategically
and conveniently set up philanthropic accounts that provide significant
income, capital gains and estate tax benefits.
"The addition of Charitable Trust Services solidifies Schwab
Charitable's position as the innovative leader in the charitable arena,"
said Kim Wright- Violich, president of Schwab Charitable. "By offering a
variety of philanthropic services, Schwab Charitable will provide solutions
for each donor's unique circumstances and help donors better leverage the
tax benefits associated with their giving. Individuals do not usually rely
on their advisors for suggestions about what causes to support but they do
expect to receive guidance on the best way to give. In all its endeavors,
Schwab Charitable strives to focus on solutions that make it easy for
donors -- by removing barriers to giving and by providing ways for them to
leverage independent advisors' investment and financial planning expertise
so that they can give more."
Advantages of Charitable Trust Services
Charitable Trust Services are simple, flexible and tax-smart solutions
for individuals seeking life-long investment income for themselves or other
beneficiaries, while reducing income, capitals gains and estate taxes and
leaving a charitable legacy for future generations:
-- The trust can generate a lifetime income stream for one or more
beneficiaries.
-- The donor receives an immediate income tax deduction for the calculated
charitable remainder value of the contribution and avoids capital gains
taxes on highly-appreciated donated assets. Donations to a remainder
trust are also removed from the individual's taxable estate.
-- Schwab Charitable takes responsibility as the trustee for all
custodial, administrative and tax-reporting requirements.
-- By donating the charitable remainder to an account with Schwab
Charitable's donor-advised fund, individuals can enjoy flexibility in
charitable recipient nominations or give future generations of their
family a convenient way to support charitable causes they value.
In addition to its advantages for donors, Schwab Charitable provides
resources to investment advisors to help them manage various aspects of
trust services, including trust experts who are available to help draft
appropriate trust documents, develop income projections and planning
scenarios and assist in identifying potential clients who may be interested
in the service. Charitable Trust Services allows investment advisors to
become the solution of choice for individuals with increasingly complex
lives and financial goals.
"Schwab Charitable's trust services offers unmatched flexibility and
convenience," added Wright-Violich. "Very few charitable organizations are
able to serve as trustee and allow for independent investment management of
a trust's assets. These comprehensive capabilities make Schwab Charitable a
leading choice for the establishment of charitable remainder trusts."
How Schwab Charitable's Trust Services Work
To take advantage of Schwab Charitable's trust services, individuals
establish the trust and name Schwab Charitable Trust Services as the
trustee. The donor identifies both the income and charitable beneficiaries,
and recommends an investment adviser for the trust's assets. The individual
makes an irrevocable minimum donation of $250,000 in the form of cash,
publicly- traded securities, closely-held stock, real estate or other
"non-cash" assets. These assets are then either re-titled or liquidated by
Schwab Charitable and invested and managed by the individual's nominated
investment advisor.
A remainder trust can be established either for the life of the donor
or for a maximum fixed term of 20 years, over which time Schwab Charitable
will distribute income to the income beneficiaries of the trust. At the
trust's termination, Schwab Charitable will distribute the remainder to the
donor's Charitable Gift Account with the Schwab Charitable Fund where
successor donor-advisors, named by the donor, will advise these funds like
any other donor-advised fund account and have the ability to recommend an
investment advisor, via the Fund's popular Charitable Asset Management
feature, to manage the donated assets. As an alternative, the donor may opt
to provide Schwab Charitable with up-front recommendations as to the
charities that should receive trust assets from their Charitable Gift
Account. Either approach provides more flexibility than has historically
been available with charitable trusts.
New Name -- "Schwab Charitable" -- Reflects Expanded Services
In light of the addition of Charitable Trust Services, the organization
previously known as the Schwab Fund for Charitable Giving now uses the name
Schwab Charitable. Schwab Charitable's donor-advised fund, the Schwab
Charitable Fund, is already one of the largest and most popular
donor-advised funds in the country. Established in 1999, the Fund boasts
more than $1.6 billion in donations to date, with more than 125,000 grants
made for more than $600 million in donations to public charities throughout
the country. It was the first leading national donor-advised fund to offer
independent investment advisors the ability to manage donated assets.
Charitable Trust Services extends that capability to charitable trusts.
About Schwab Charitable
For more information about Schwab Charitable and Charitable Trust
Services, visit http://www.schwabcharitable.org. Schwab Charitable is the name
used for the combined programs and services of the Schwab Charitable Fund
and Schwab Charitable Trust Services. Schwab Charitable Fund is the
operating name of the Schwab Fund for Charitable Giving, an independent
nonprofit organization. Schwab Charitable Trust Services is a limited
liability company owned by the Schwab Charitable Fund that provides
charitable trust management services. Charitable Asset Management is
available only through investment advisors working with Schwab
Institutional or U.S. Trust and requires a $250,000 account minimum. While
donors may recommend an advisor, the Fund must approve the recommendation.
Advisors must meet certain eligibility requirements and adhere to Fund
investment guidelines. The Fund has entered into service agreements with
certain affiliates of The Charles Schwab Corporation including Charles
Schwab & Co., Inc. (member SIPC, http://www.sipc.org ) and Charles Schwab
Investment Management, Inc. (1006-5347)
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Lara Edge of Charles Schwab, +1-415-636-3386,
or lara.edge@schwab.com
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