Episode 207 – Tax-Smart Charitable Giving: The Power of Donor Advised Funds with Hayden Adams & Ruby Pediangco

Mar 26, 2024

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Schwab Charitable^TM is an independent 501(c)(3) with a mission to increase charitable giving in the U.S. by providing a tax-smart and simple giving solution to donors and their investment advisors.

In this episode, we’re joined by Hayden Adams CPA, CFP^®, the Director of Tax and Financial Planning at the Schwab Center for Financial Research, as well as Ruby Pediangco, Senior Manager, Charitable Strategies Group at Schwab Charitable.

Hayden and Ruby explore the invaluable benefits of donor-advised funds, essential tax strategies for charitable giving, and the plethora of resources available to optimize your tax planning.

They also discussed:

The offerings of Schwab Charitable which include donor-advised funds (DAFs) and philanthropic resources for tax-efficient charitable giving.
How DAFs can be used as flexible charitable investment accounts allowing contributions of various assets for tax benefits and grant recommendations to qualified charities.
Why tax practitioners highly favor DAFs in charitable giving.
Tax-smart giving strategies such as, bunching donations, using qualified charitable distributions for maximum tax benefits, and leveraging tax loss harvesting.
Utilizing appreciated assets as charitable gifts, and considerations of timing, due diligence, and potential tax implications when donating assets like real estate or businesses.
Charitable legacy planning, including selecting appropriate assets for and open communication with family members.
Specialized programs, experts, and online materials available such as Schwab Charitable’s Giving Guide, which includes interactive components related to budgeting, tax deductibility rates, and using giving vehicles. The website also offers a Bunching and Tax Savings Calculator and a Charitable Donation Calculator to guide donors and advisors in tax-smart charitable giving.

Resources: Schwab Charitable

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The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.

Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain subsidiaries of The Charles Schwab Corporation.

Schwab Charitable Fund is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Contributions made to Schwab Charitable Fund are considered an irrevocable gift and are not refundable. Once contributed, Schwab Charitable has exclusive legal control over the contributed assets.

A donor’s ability to claim itemized deductions is subject to a variety of limitations depending on the donor’s specific tax situation. Consult a tax advisor for more information.

Contributions of certain real estate, private equity, or other illiquid assets may be accepted via a charitable intermediary, with proceeds transferred to a Schwab Charitable donor-advised account upon liquidation. Call Schwab Charitable for more information at 800-746-6216.

Fair market value estimations are provided by a third-party vendor. Securities are valued on the date they were received by Schwab Charitable. For securities held one year or less, the deduction is limited to the lower of the fair market value or the cost basis on the date of the contribution.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

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