A Smarter Way to Give When Your Equity Finally Pays Off
We're excited to announce a new partnership with Equitybee, the platform that helps startup employees unlock the value of their equity. Together, we're solving a problem that's uniquely painful for people building companies — the moment your equity finally pays off is also the moment your tax bill arrives.
The problem with getting paid in equity
If you've spent years at a startup taking equity instead of a bigger salary, you already know the tradeoff. You bet on the company, and if it works, the payoff can be significant. But liquidity events don't just bring a windfall — they bring a tax bill that lands at the exact same time. Most people aren't prepared for how much of that gain the IRS is entitled to, and even fewer know there's a better way to handle it.
That's where a Donor-Advised Fund comes in.
Why a Donor-Advised Fund changes the math
A Donor-Advised Fund, or DAF, is a personal charitable giving account built for tax optimization and to help startup employees and investors save more. When you contribute to a DAF, you claim your tax deduction in the year you give — but the actual grants to the causes you care about can happen on your own timeline. There's no requirement to distribute funds right away, and no need to have your full giving strategy figured out the moment your liquidity event hits.
Here's the part most people miss: the majority of donors give cash. But learning to utilize appreciated assets — rather than selling them first and donating the proceeds — is almost always the smarter move. When you contribute appreciated stock or other appreciated assets directly to your DAF, you get a deduction based on fair market value, and you eliminate the capital gains tax you'd otherwise owe on the sale. It's the same generosity, structured to save more and give more.
Built for founders and startup employees
Most giving vehicles are built around cash and public securities. That's a problem when your wealth looks nothing like that. UI Charitable was built differently, and complex asset donations are what we do best. We accept long-term appreciated assets that most organizations can't touch — appreciated stock, private stock, and cryptocurrency — because we understand that startup wealth is often illiquid, complex, and concentrated in a single company. Donating complex or illiquid assets often leads to increased tax savings and a more efficient use of your entire balance sheet.
That's exactly where Equitybee fits in. Equitybee helps you unlock the value of your startup equity; UI Charitable helps you utilize appreciated assets to give from it. Together, we're offering a path for founders and employees to turn hard-to-access wealth into tax savings and charitable impact.
One important boundary: shares that are already covered by an Equitybee funding agreement can't be donated through this structure, since Equitybee has an existing interest in those shares. But any other appreciated assets you hold — appreciated stock, private stock, public stock, crypto, and more — remain fully eligible for complex asset donations under this strategy.
What this can look like in practice
Startup employee in California. Salary: $350K • Private share value: $1M • Shares donated to a DAF: $300K (30%)
The result: a larger charitable impact, a smaller tax bill, and full flexibility on when and where the grants ultimately go.
This is general information, not tax advice. Every situation is different, and we always recommend talking with a qualified tax or financial professional before making a giving decision.
Get started
If your equity is finally paying off — or you're planning ahead for when it will — we'd love to help you make the most of it. Visit uicharitable.org/equitybee to learn more and start turning your equity into impact.
Still need to exercise your options? Equitybee helps startup employees fund the cost of exercising and cover the taxes that come with it. Check out their offering at equitybee.com.
