Charles Schwab hopes to lure advisors to its Schwab Fund for Charitable Giving with a new feature that allows them to manage the assets in their clients' donor-advised fund.

Schwab officials point out that by letting advisors take charge of the assets in the fund, they are able to exploit the benefits of a private foundation with the ease, efficiency, and reduced expenses of a donor-advised fund. Donors must place at least $500,000 in the account to be able to use the service.

"Private foundations face a less favorable legislative environment and increased scrutiny from public officials who are pushing for more accountability and reporting," said Kim Wright-Violich, president of the Schwab Fund for Charitable Giving. "At the same time, many high net worth individuals cite a lack of time as an obstacle to giving. A simple solution for many philanthropists is to convert their private foundation into a donor-advised fund account, which allows them to continue their giving without the administrative responsibilities and fiduciary oversight required for a private foundation."

Schwab is only making the Charitable Asset Management service available to donors and advisors working with Schwab Institutional or U.S. Trust advisors.  

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