Americans have a deep desire to become involved with and have an impact on various societal issues and alleviate suffering where there’s great need. If you’re involved in regular charitable giving, you know how satisfying it is to know that you’re truly making a difference. Giving cash, often referred to as “checkbook charity” is the popular choice for many Americans, but it may not be “tax-smart”. By looking beyond cash and contributing appreciated long-term assets, you may leverage more tax impact on your family wealth.
Many people overlook the benefits of giving assets other than cash to cover their charitable giving. You can give marketable securities and a wide range of illiquid assets to your iGiftFund donor advised fund and:
- Receive immediate income tax deduction at fair market value.
- Avoid any capital gains tax.
- Have more charitable dollars available to support your favorite causes.
The types of assets you can contribute to your donor advised fund include marketable securities and a wide variety of illiquid asset types like:
- privately-held C- and S-Corp stock shares
- limited Liability interests – LLCs and LPs
- real estate – commercial and residential
- restricted stock
- hedge fund interests
- certain other valuable assets
Illiquid assets, often referred to as “complex assets”, are those that you can’t quickly or easily exchange for cash. For many American families, the majority of family wealth is illiquid, i.e. real estate and shares in closely held businesses. These assets types are often overlooked and untapped for carrying-out the family’s philanthropic interests.
At iGiftFund we have extensive experience (perhaps the longest in the industry) in handling donations of illiquid, complex assets. Once you decide to donate an illiquid asset, we work with your team of trusted advisors to review all associated documentation and facilitate the transfer, holding, marketing (where necessary) and eventual liquidation of the assets.
Once the process is completed and the assets are liquidated, you can:
- recommend that we use your trusted financial advisor to manage the investments in your donor advised fund
- recommend grants from your donor advised fund to your favorite charities on your own convenient timetable
The takeaway: Don’t limit your charitable-giving options to cash. Consider leveraging your tax benefits by donating a wide range of appreciated asset types to your donor advised fund at iGiftFund. You have more options to create your philanthropic legacy than you may have thought of.