If you're considering selling, now is the time to start the conversation.
Give Complex Assets
Give Complex Assets
Amplify your impact by giving beyond cash
When it comes to charitable giving, cash gifts or publicly-traded stock typically come to mind first. But did you know that you can also give real property or other more complex assets, such as pre-IPO stock, carried interest, LLC interests or even private equity?
If well-planned and given before sale, this can be a powerful charitable opportunity.
Timing is key
Consider this: you purchased a vacation home for $800,000 years ago, and you don't use it much anymore. You don't have children, and you'd like to sell it and donate the proceeds to your favorite nonprofits. It's worth about $1.6 million today, and you want to maximize that amount that goes to charity — and minimize your taxes.
What approach should you take?
Sell first | Donate first |
| Sale price: $1.6 million | Sale price: $1.6 million |
| Capital gains tax: $160,000 | Capital gains tax: $0 |
| Charity receives: $1.44 million | Charity receives: $1.6 million |
| Your charitable deduction: $1.44 million | Your charitable deduction: $1.6 million (market value of the house) |
As this example illustrates, donating complex assets to charity is most effective and impactful when done before sale.
If you complete the transaction before a liquidation event, your ultimate gift is more powerful because public charities are exempt from capital gains taxes on your gift, so they benefit from the entire market value. If you wait until after sale, you must pay taxes first, which reduces the amount you can donate.
Giving can be complex. We make it simple.
Over the years, you may have accumulated interests in LLCs, limited partnerships or closely held corporations. Did you know that you can turn these illiquid assets into substantial charitable impact?
Depending on your goals, you can support your favorite causes while still maintaining control of your business. Or you can maximize your charitable gift while minimizing capital gains taxes.
FFTC recently helped fundholders Tim and Kelly Kullick (right) convert shares of appreciated public stock and private equity interests into real philanthropic impact.
In their own words
"FFTC was user friendly and transparent through the complex planning process. My biggest advice to other donors is to start the valuation and appraisal planning process early."
Walker Poole
"FFTC did a great job of walking me through the process of transferring ownership. I have deep trust build over years of experience working with them."
Clay Grubb
Real property, real impact
If you're considering selling real estate and would like to use a portion of the proceeds for charitable causes, you have an experienced partner in Foundation For The Carolinas.
By donating before sale, you can maximize the charitable gift while minimizing your capital gains taxes.
Before he passed, real estate developer John Crosland Jr. (left) leveraged his assets to establish the Crosland Foundation with FFTC.
Turning assets into impact
Get in touch
Doug Benson
Chief Administrative Officer & Chief Risk Officer