Many advisors know that Donor-Advised Funds can be a powerful year-end tax tool. Fewer realize they are also one of the most effective ways to turn illiquid assets—like business interests, crypto, or real estate—into high-impact giving.
At UI Charitable, we specialize in helping advisors and their clients navigate these transactions with precision, speed, and a deep understanding of charitable tools. Here is a real example of how one group of business owners turned a life-changing liquidity event into lasting philanthropic impact.
The Situation: A Strategic Exit, With Purpose in Mind
Four partners were preparing to sell their privately held healthcare technology firm. After years of growth, they received a compelling acquisition offer from a strategic buyer. But before finalizing the sale, their advisory team raised a critical question:
“What if you could reduce your tax exposure—and amplify your impact—by donating a portion of your equity before the sale?”
Each partner had different charitable goals, but they all shared a desire to give back. With help from their financial advisors, estate attorneys, and UI Charitable, the team explored a strategy to contribute a portion of their ownership to Donor-Advised Funds before the sale closed.
The Solution: Pre-Sale Contributions of Private Equity
Working closely with the client’s advisors, UI Charitable:
Reviewed the business operating agreement to ensure that a donation was possible.
Coordinated with the legal team to draft a gift agreement for each partner’s equity.
Created four separate Donor-Advised Fund accounts—one for each partner—tailored to their personal philanthropic goals.
Facilitated valuation and acceptance of the contributed shares prior to the liquidity event.
In total, the partners contributed roughly $3.8 million in equity, resulting in:
Significant capital gains tax savings on the donated shares.
Charitable deductions at fair market value, maximizing their giving budgets.
Immediate funding of their Donor-Advised Funds upon sale, with the flexibility to grant out funds over time to the causes that matter most to them.
The Advisor's Role: Catalyzing a Smart, Impactful Outcome
This success story was made possible because the advisory team was proactive. The financial advisor:
Identified the upcoming liquidity event early
Initiated the conversation about pre-sale charitable strategies
Partnered with UI Charitable to execute a seamless transfer
By involving a philanthropic specialist, the advisor not only added tremendous value to the client—but also deepened long-term trust and client retention.
Why It Matters
Too often, illiquid assets go underutilized in charitable planning. But with the right tools, advisors can help clients turn illiquid wealth into meaningful giving—while also achieving tax efficiency.
Whether you are working with founders, real estate investors, or crypto holders, UI Charitable provides the technical support, compliance expertise, and charitable vehicle options to make these strategies work.
👉 Ready to Plan Ahead?
We offer complimentary 15-minute consultations for advisors evaluating upcoming liquidity events.
Let us help you turn complexity into clarity—and purpose.
