Why VCs and their Investors Should
Utilize DAFs
Why VCs and their Investors Should Utilize DAFs
Built for venture capital, allowing individuals to invest in VC funds directly from their DAF and turn highly appreciated fund interests into meaningful tax deductions.
Built for venture capital, allowing individuals to invest in VC funds directly from their DAF and turn highly appreciated fund interests into meaningful tax deductions.
WHAT WE OFFER
Two Core Advantages
Individuals can invest their DAF assets
directly into VC funds.
Maximize your tax deduction and reduce
capital gains by donating appreciated
assets (fund interests and private stock).
Investment Flexibility
Individuals can invest their DAF assets
directly into VC funds.
Donations
Maximize your tax deduction and reduce
capital gains by donating appreciated
assets (fund interests and private stock).
CASE STUDY
Donating VC Fund Interest
A general partner holds $4,000,000 in carried interest with a $0 cost basis. Facing an upcoming liquidity event, they donate a portion, $1,000,000 directly to a UI Charitable DAF before the sale to maximize tax efficiency and charitable impact. Combined federal and state tax rate: 37%.
Donation After Sale
Donation Before Sale
Fair Market Value of Interest
$4,000,000
$4,000,000
Cost Basis
-$0
-$0
Donation Prior to the Sale
-$0
-$1,000,000
Taxable Amount
=$4,000,000
=$3,000,000
Taxes
-$1,480,000
-$1,110,000
After Tax Proceeds
=$2,520,000
=$1,890,000
Donation After Sale
$1,000,000
$0
Net Cash Retained
=$1,520,000
=$1,890,000
+ Donor-Advised Fund
+$1,000,000
+$1,000,000
Net Cash Retained + DAF
=$2,520,000
=$2,890,000
Takeaways
Tax Deduction
The GP qualifies for an immediate tax deduction based on the fair market value of the portion of
the business that was donated.
$370,000 In Savings
The $1 million donation to the Donor-Advised Fund made prior to the sale saved the individual
$370,000 net.
Tax Free Growth
Additional gains after the donation grow tax free in the DAF.
Everything You Need.
Nothing in Your Way.
BUILT FOR VENTURE CAPITAL
BUILT FOR VENTURE CAPITAL
Everything You Need. Nothing in Your Way.
Open Architecture
You decide how assets are managed and invested.
Flexible Investment Options
Access to a full range of investments, including VC fund investments.
Dedicated Support
Full-time, internal team dedicated to ensuring your sucess.
No Forced Liquidity
Hold any asset, exactly how you want. No forced liquidity.
Keep Your Custodian
No disruption to your current setup, we work with any custodian or platform.
Access to Charitable Vehicles
Access to charitable vehicles to structure best for your goals.
Meet with our team
Flexible Investment
Options
No Forced
Liquidity
Open
Architecture
Dedicated Support for You and Your Team
Keep Your Custodian or Management Platform
Access to Charitable Vehicles
Let's Talk About Your
Charitable Strategy
Meet with our team.
CASE STUDY
Donating VC Fund Interest
A general partner holds $4,000,000 in carried interest with a $0 cost basis. Facing an upcoming liquidity event, they donate a portion, $1,000,000 directly to a UI Charitable DAF before the sale to maximize tax efficiency and charitable impact. Combined federal and state tax rate: 37%.
Donation After Sale
Donation Before Sale
Fair Market Value of Interest
$4,000,000
$4,000,000
Cost Basis
-$0
-$0
Donation Prior to the Sale
-$0
-$1,000,000
Taxable Amount
=$4,000,000
=$3,000,000
Taxes
-$1,480,000
-$1,110,000
After Tax Proceeds
=$2,520,000
=$1,890,000
Donation After Sale
$1,000,000
$0
Net Cash Retained
=$1,520,000
=$1,890,000
+ Donor-Advised Funds
+$1,000,000
+$1,000,000
Net Cash Retained + DAF
=$2,520,000
$2,890,000
Takeaways
Tax Deduction
The GP qualifies for an immediate tax deduction based on the fair market
value of the portion of the business that was donated
$370,000 In Savings
After taxes, the $1 million donation placed in the DAF prior to the sale saved
them $370,000 net.
Tax Free Growth
Additional gains after the donation grow tax free in the DAF.
Why VCs and their Investors Should
Utilize DAFs
Built for venture capital, allowing individuals to invest in VC funds directly from their DAF and turn highly appreciated fund interests into meaningful tax deductions.
Keep Your Custodian or
Management Platform
Open
Architecture
No Forced Liquidity
Dedicated Support for
You and Your Team
Flexible Investment
Options
Access to Other Charitable Vehicles
Investment Flexibility
Individuals can invest their DAF assets
directly into VC funds.
Donations
Maximize your tax deduction and reduce capital gains by donating appreciated assets (fund interests and private stock).
Two Core Advantages
WHAT WE OFFER
Everything You Need.
Nothing in Your Way.
BUILT FOR VC INVESTORS
Meet with our team.