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Money Management Executive

Investors More Likely to Give When Donor-Advised Accounts Are Available

November 27, 2001, 1:00 a.m. EST 1 Min Read

A new survey issued by Charles Schwab suggests that brokerages and fund complexes that offer donor-advised funds encourage investors to dig into their pockets more deeply and frequently for charities.

The survey, which was conducted by the Schwab Fund for Charitable Giving, says that investors are more likely to donate to charities when they have a donor-advised fund readily at their fingertips.

The Fund for Charitable Giving, a nonprofit provider of donor-advised funds with more than $134 million in assets, surveyed 10% of its investors. Fifty-seven percent of the respondents said the accounts’ availability has prompted them to donate more to charities, and 34% said they will donate to charities they have not supported before.

Donor-advised funds allow investors to transfer assets into tax-free investment pools and then allocate donations to approved charities.

An overwhelming majority, 73%, said they were attracted to the accounts because of the tax advantages.

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Money Management Executive
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