Donating Complex Assets

We are able to manage donations of any type of complex asset. This allows donors to maximize their tax benefits while also providing more flexibility to support the causes they care about.

Create Account

Donate

Ownership of all or a portion of the asset is transferred to UI through a Gift Agreement

How It Works

Sale

When the donated asset is sold, the pro rata portion of the sale proceeds go to the Charitable Fund (typically a DAF)

Grant

The donor can then recommend grants that are sent from the Charitable Fund to support causes they care about

Donate

Ownership of all or a portion of the asset is transferred to UI through a Gift Agreement

Sale

When the donated asset is sold, the pro rata portion of the sale proceeds go to the Charitable Fund (typically a DAF)

Grant

The donor can then recommend grants that are sent from the Charitable Fund to support causes they care about

How It Works

Donate

Ownership of all or a portion of the asset is transferred to UI through a Gift Agreement

Sale

When the donated asset is sold, the pro rata portion of the sale proceeds go to the Charitable Fund (typically a DAF)

Grant

The donor can then recommend grants that are sent from the Charitable Fund to support causes they care about

How It Works

Tax Benefits of Donating Complex Assets

Eliminates capital gains taxes on the portion of the asset that is donated

Qualifies donors for an immediate personal income tax deduction for the fair market value of the asset

Case Study

A family that wants to be charitably active in retirement is selling their debt-free business for $10 million. Their taxes include a 20% capital gains tax and a 7% state tax, totaling 27%. Their financial advisor suggests donating $2 million of the equity into their DAF to help accomplish their philanthropic goals.

2 Possible Scenarios:

The family sells the business then uses money from the sale proceeds to give to charity.
The family donates a portion of their ownership stake to a DAF ahead of the sale.

Donation After Sale

Donation Before Sale

Sale Price

$10,000,000

Donation Prior to Sale

$2,000,000

Cost Basis

$100,000

Taxable Amount

$9,900,000

$7,900,000

Taxes

$2,673,000

$2,133,000

After Tax Equity

$7,327,000

$5,867,000

Donation After Sale

$2,000,000

Final Equity

$5,327,000

$5,867,000

Gift Tax Deduction

$2,000,000

Income Tax Savings @44% TB

$880,000

Final Equity Plus Tax Savings

$6,207,000

$6,747,000

Takeaway

The family qualifies for an immediate tax deduction based on the fair market value of the portion of the business that was donated

The family eliminates the capital gain tax on the 2 million by transferring the equity into their UI DAF before selling it

After taxes, the 2 million donation placed in the DAF prior to the sale saved them $540,000 net.

Additional gains after the donation grow tax free in the DAF

The family qualifies for an immediate tax deduction
based on the fair market value of the portion of the
business that was donated

The family eliminates the capital gain tax on the 2
million by transferring the equity into their UI DAF
before selling it

After taxes, the 2 million donation placed in the
DAF prior to the sale saved them $540,000 net.

Additional gains after the donation grow tax free
in the DAF

The family qualifies for an immediate tax deduction based on the fair market value of the portion
of the business that was donated

The family eliminates the capital gain tax on the 2 million by transferring the equity into their
UI DAF before selling it

After taxes, the 2 million donation placed in the DAF prior to the sale saved them $540,000 net.

Additional gains after the donation grow tax free in the DAF