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Market Update

Looking Under the Hood at Schwab Charitable Fund

We take a close look at the ongoing fees and underlying investment options for the second-largest donor-advised fund in the U.S.

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With $17.1 billion in assets as of June 30, 2020, Schwab Charitable Fund ranks as the second-largest donor-advised fund affiliated with an asset-management firm in the United States. (It's a distant second to Fidelity Investments Charitable Gift Fund, though, which has about twice the assets.)

As I covered in my recent article, donor-advised funds have several advantages. Donor-advised funds are public charities that qualify as section 501(c)(3) organizations. That means donors can benefit from an immediate tax deduction when they contribute cash or other assets to the fund. Although contributions are irrevocable (meaning you can't withdraw donations if you change your mind or need extra cash), the donor retains an advisory role and can recommend how to invest the assets and how much to contribute to various charities over time.

Amy C. Arnott does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.