Use Your Noncash Assets to Ignite Kingdom Transformation
90% of the average American’s wealth is in noncash or nonliquid assets, such as stock or business interests.
Yet, 80% of our giving is done with cash.
We believe we are called to be faithful stewards of all our resources. We can move beyond cash giving and look for opportunities to be generous with our other, noncash and nonliquid assets. What starts as a tax saving strategy can grow into something that will make a difference for eternity. This is what revolutionary kingdom impact looks like.
How does it work?
Donating appreciated noncash assets to charity can benefit both the donor and the recipient. As a donor, you may be able to minimize your tax liability while maximizing what you are able to give.
Step 1
Start early! If you are considering selling a noncash or nonliquid asset (e.g., your business, real estate, or even cryptocurrency) sometime in the future, now is the time to start planning charitable contributions.
Step 2
Donate all or part of the asset to a donor advised fund with The Signatry before the asset is sold or liquidated. The Signatry takes ownership of the donated asset.
Benefit #1: When you donate your appreciated noncash or nonliquid asset, you may receive a tax deduction for the fair market value of the donated portion.
Step 3
When the asset is sold, the portion held in the donor advised fund at The Signatry will be liquidated, and the resulting cash in the fund balance may be granted to charities.
Benefit #2: Your capital gains taxes from the sale may be lower because you have already donated part of the asset to The Signatry.
Benefit #3: The Signatry is a 501(c)(3) public charity and may be able to pay a lower capital gains tax rate on the donated portion of the asset. This can leave a higher portion of the proceeds available for granting in the donor advised fund.
Every noncash or nonliquid asset gift is unique. The benefits for your family and for the charities you wish to support will vary based on your unique situation. Talk with your financial advisor or one of our team members about the details and possible benefits of donating your noncash and nonliquid assets. Our team has decades of experience strategizing and processing noncash and nonliquid charitable contributions.
The most important thing to remember is: Start early. Many of the benefits of giving non-cash assets only apply when the asset is donated before it is sold.
Connect with our assets team to learn more about solutions for you.
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Maximize generosity. Use our calculator to see how making a non-cash charitable contribution before you sell your asset could increase the impact of your gift.
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