How to make charitable donations

How to make charitable donations

Schwab account holders can make contributions to charities directly from their Schwab brokerage account or by setting up a donor-advised fund Tooltip account with Schwab Charitable™ Tooltip .

You can submit a charitable gift request from a Schwab brokerage account using a Transfer of Assets Out: Partial Account or Charitable Gift Transfers form.

To make a contribution through Schwab Charitable, see How to use a Schwab Charitable™ donor-advised fund account.

For charitable giving deadlines, view timetables for charitable giving and retirement accounts.

To make a charitable gift from a Schwab brokerage account to an outside firm, you will need the following:

All accounts
  • The account holder's name and account registration
  • The charity's information, including account name at the receiving institution, account number, contact name, and contact telephone number
  • The receiving firm's information, including name, DTC number, contact name, and telephone number
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
In addition to the information above, the following may be required:
Cash gifts
  • An exact dollar amount
Equity gifts
  • The name, symbol, and number of whole shares; amounts in dollars, percentages, or equity fractional shares are not accepted
Mutual fund gifts
  • The name, symbol, and number of shares; fractional shares only transfer up to three decimal places
  • Contact the receiving firm to determine if the charity's brokerage account can accept mutual fund shares; if not, the charity needs to establish an account with the mutual fund company or consider an acceptable, comparable security at the receiving company
  • If the charity has established an account at the mutual fund company, provide the account number; otherwise, provide the account number at the brokerage house and tax identification number of the charity
Gifts of securities
  • If there are specific lots with assigned cost basis to be gifted, provide all of the details of those lots, including the number of shares, date of purchase, and assigned cost basis

This process is used to make a charitable gift of stocks, bonds, or mutual funds from a Schwab brokerage account using forms.

  1. Go to the Forms library on Schwab Advisor Center® and select the Transfer of Assets Out: Partial Account or Charitable Gift Transfers form.
  2. Open the form and complete all applicable sections.
  3. In section 3, enter the DTC electronic transfer information Tooltip .
  4. Print the form and obtain a signature from the account holder (the signature of all account holders if the account is Tenants in Common or has special distribution criteria that require all account holders to sign). Send the signed form to your Schwab service team via a Schwab Advisor service request.

This process is to be used to make a charitable gift of cash from a Schwab brokerage account using a written letter of authorization.

  1. Draft a letter of authorization containing all applicable information, including:
    • Date of letter.
    • The Schwab account number from which the gift will be withdrawn.
    • An exact dollar amount.
    • For individual, joint signature of the custodian and statement that provides the reason for the gift.
    • For any securities being gifted: If there are specific lots with assigned cost basis to be gifted, provide all of the details of those lots, including the number of shares, date of purchase, and assigned cost basis.
  2. Provide specific recipient information, including all account numbers and account holder information at the receiving firm:
    • The account name and number at the receiving firm.
    • The contact name and telephone number at the receiving firm.
    • For check donations, the letter must include the name of the payee and the mailing address of the check.
    • For journal donations to another Schwab account in the name of the charity, the letter must include the Schwab account number to which the funds are deposited.
    • For wire transfer donations, the letter must include the receiving bank name and ABA number Tooltip as well as the account number at the receiving bank.
  3. Print the letter and obtain signatures from account holders. Send the signed letter to your Schwab service team via a Schwab Advisor service request.

Restricted stock Tooltip has additional liquidation constraints. This process is used to make a charitable gift of restricted stocks from Schwab account forms:

  1. Go to the forms library on Schwab Advisor Center and select the forms below.
    • Letter of Authorization (LOA) Transfer of Restricted Stock
    • Irrevocable Stock or Bond Power
    • Intent Form for Restricted Stock
  2. Open the forms and complete all necessary fields.
  3. Print one copy each of the Letter of Authorization (LOA) Transfer of Restricted Stock form and Intent Form for Restricted Stock.
  4. Print two copies of the Irrevocable Stock or Bond Power form.
  5. Obtain account holder signature(s) and fax the forms to Schwab Advisor Services™ Restricted Stock Service at 877-255-2064.

Once the forms have been submitted:

  • The request will be reviewed and processed by your service team or the Schwab Restricted Stock Team. Processing times vary depending on the security type:
    • Equities—two days
    • Journals—same day if received by the cutoff time Tooltip
    • Mutual funds—four days to three weeks, depending on the fastest delivery method available to the receiving firm
    • Restricted security—varies based on issuer's legal counsel
  • Confirmation will appear on the Transaction tab. If the donation is restricted stock, the Schwab Advisor Services Restricted Stock Team will actively stay in contact and call with updates as the transactions proceed. The process usually takes three to five weeks to complete.
  • If you have any questions or need more information about restricted stock, call the Schwab Restricted Stock Team at 877-804-3525.
  • If you have any questions about making charitable donations from a Schwab brokerage account, call your Schwab service team.

To select a form, go to the Forms library on Schwab Advisor Center. 

Form: Transfer of Assets Out: Partial Account or Charitable Gift Transfers

Form: Intent Form for Restricted Stock

Form: Irrevocable Stock or Bond Power

Form: Letter of Authorization (LOA) Transfer of Restricted Stock

What is the difference between a charitable donation and donating through Schwab Charitable?
Charles Schwab allows you to make a single charitable contribution through a letter of authorization, but the donation may be a taxable event, depending on the account registration, the type of donation, and the type of charity.

Contributions to a Schwab Charitable account are tax deductible in the year they are made and can potentially eliminate capital gains on appreciated assets or investments held for more than a year. Schwab Charitable can accept a variety of assets and investments, including real estate, C-Corp, S-Corp and other complex assets. Proceeds from assets can then be invested in donor-advised or professionally managed accounts for tax-free growth and granted to your client's favorite charities at any time.

Can I use DocuSign® to submit forms for charitable donations?
No. DocuSign is not available for charitable donations at this time.

Can I make a qualified charitable distribution from an IRA?
Yes. IRA holders age 70 1/2 and older can annually make qualified charitable distributions Tooltip (QCDs) of up to $100,000 directly to a qualifying charity without being taxed on the distribution. In addition, IRA holders age 72 or older can also make QCDs to satisfy annual IRA required minimum distributions (RMDs), which are suspended in 2020 as part of the CARES Act. QCD must be made directly to qualifying and operating public charities; as defined in the Internal Revenue Code. Donor-advised funds, supporting organizations and private foundations are not "qualifying" charities for QCDs.

Are there restricted securities that Schwab cannot accept?
Yes. Schwab does not accept the following restricted securities: restricted stock trading < $1/share, third-party restricted stock, certificates with a Regulation S or Rule 904 restriction, and securities restricted under Rule 144A.

How do I know if securities are restricted?
Restricted stock is always in a physical format such as a certificate; most restricted certificates have a stamp on the front that reads "See Restrictive Legend on Back." On the back of most certificates is a legend with a paragraph that reads: "The securities represented hereby have not been registered under the Securities Act of 1933."

Is there a fee for gifting restricted stock?
Schwab does not charge any additional fees for the gifting of restricted stock. The broker-assisted commission pricing schedule applies for all trades regardless of order entry method, whether through a broker or online.

How to donate through Schwab Charitable™
How to open a trust account
How to trade restricted and control securities
Introduction to Schwab Charitable™
Schwab Charitable™ website