Schwab Charitable donors increased grants to charity in 2022 to more than $4.7 billion, with a record 995,000 grants to more than 117,000 charities, per its 2022 Giving Report. This number represent a 7% increase, or nearly $300 million more, for charities compared with 2021. The data shows that overall, donor-advised funds proved to be resilient amid a turbulent year, with donors giving more generously despite one of the worst years for the U.S. stock markets in over a decade. Donors have recognized that the need to give is ever present and even more crucial amid market turmoil and uncertainty.
“I’m so grateful to see how our donors continue to increase their giving, despite a tough year with economic uncertainty, natural disasters and global crises,” said Sam Kang, president of Schwab Charitable.
Allocation of Grants
Twenty-seven percent of grants went to organizations not previously supported by Schwab Charitable. Donors report being able to pick where to allocate their giving as a rewarding and meaningful experience. Though a large majority (71%) of grants were designated for a charity to use at its discretion, 29% of grants were designated for a specific purpose, once again highlighting the involvement of donors. More specifically, 87% of donors gave locally, granting to charities within their state of residence.
In light of ongoing humanitarian crises, Schwab Charitable works with The Center for Disaster Philanthropy (CDP) to provide donors with lists of pre-vetted charities supporting relief and recovery efforts for crises across the world. In 2022, donors increased the number of grants to organizations recommended by the CDP by 33% compared with 2021, with $149 million granted for disaster relief and recovery.
How Donors Give
According to the report, donating noncash assets, such as publicly traded stock or private business interests, directly can increase the amount available for a charity by up to 20% by allowing donors to eliminate capital gains tax liability on the assets. In 2022, 60% of Schwab Charitable account contributions were noncash assets. Donors who itemize deductions when filing their taxes may claim a charitable deduction for the tax year in which the contribution is made, which allows them to pass on the tax savings in the form of more giving if they choose to.