Simplifying Complex Gifts Through Partnerships and Guidance
When it comes to charitable giving, cash isn’t your only option, and often it’s not your most strategic one. Many donors hold significant wealth in non-cash assets such as stock, real estate, or even cryptocurrency. Contributing these assets to your donor advised fund (DAF) can unlock greater giving potential, reduce tax exposure, and increase your philanthropic impact.
Caroline Murphy, Vice President of Advancement & Philanthropic Services, recently sat down with CFMW partner, Brad Caswell at Charitable Solutions, LLC, to chat about what you need to know about giving beyond the checkbook.
What are other ways donors can contribute to their Donor Advised Fund account?
Beyond the cash in a checking account, most of your assets can be donated to a charity to help advance its mission. Items on your balance sheet, ranging from stocks and bonds, real estate, special business interests, cryptocurrency, and even personal collections, can be gifted to charities.
Are there tax advantages of gifting non-cash assets over giving cash?
Yes! Donating appreciated capital assets can be a more advantageous tax decision than donating cash. For items owned more than a year, you’ll be entitled to a tax deduction for the current value of the asset. Often, it is easiest to donate public securities you have in your stock portfolio. In giving public securities, you avoid paying any capital gains taxes on the profits you’ve earned on those shares. Similarly, real estate properties, LLCs, and other private business interests, as well as cryptocurrency, all offer the same tax benefits.
Why do many charities turn down complex gifts, even though they could partner with experts to manage them?
Generally, they decline them because they involve an extra measure of effort that charities don’t have the expertise to handle or involve more risk than management of a charity is willing to accept. But all charities have ways of partnering with organizations and experts that can facilitate these gifts. Don’t be afraid to ask! If we can’t accept it directly, we can still help you find a way to make your gift to your DAF here at CFMW.
How quickly are the funds from the sale of a non-cash asset available to grant away?
It all depends on the asset and the availability of interested buyers. For stock and cryptocurrency, we can have cash in hand in just a few days. Other properties and assets may take longer to liquidate.
Does it take a long time to make a gift of a non-cash asset?
There are additional steps involved in managing donations of non-cash items, but they don’t have to be burdensome or drawn out. In many cases, they can be coordinated in a matter of days or weeks, not months. There is still a comfortable amount of time to make a gift in 2025 of a complex asset, and we can help bring the right resources into a discussion.
Great impact often starts with a single conversation. As you think beyond cash and consider gifts of stock, real estate, or other non-cash assets, remember that you don’t have to navigate the complexity alone. With the right guidance, even the most unique gifts can turn into powerful support for the causes you care about. To learn more or discuss donating complex assets, please contact Caroline Murphy at [email protected].
