Use Noncash Assets to Champion the Causes You Love
You can support your favorite cause with more than just cash.
If you plan to donate any proceeds from the sale of a noncash asset—a family business, a piece of real estate, or even publicly traded stocks—there may be a more tax-efficient strategy that allows you to give more.
How does it work?
Donating appreciated noncash assets to your favorite causes can benefit both you 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: Donate the appreciated asset.
Donate all or part of the asset to a donor advised fund with The Signatry before the asset is sold. The Signatry takes ownership of the donated asset.
Benefit #1: When you donate your appreciated noncash asset, you may receive a tax deduction for the fair market value of the donated portion.
Step 2: Liquidate the asset.
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.
Step 3: Recommend grants from the fund balance.
Submit a grant recommendation via our online portal. Specify the name of the organization, the amount, and any other information relevant for your recommendation. Our team will review the request and make sure the nonprofit is a qualified recipient. If the request is approved, The Signatry will send a grant to the selected nonprofit.
Tip: You can log in to search nonprofits that have already been approved by our team.
Four Common Opportunities
Meet a few families who use their noncash assets to champion their cause.
Giving Publicly Traded Securities: The Baxter Family
Dr. Richard Baxter was accustomed to giving the cash profits from his dental practice. The discovery of a donor advised fund and its tax benefits now allows him to increase his generosity to the nonprofits that he loves through gifts of publicly traded securities.
Giving Real Estate: The Haverkamp Family
Discover how Brent maximized his generosity by gifting real estate directly to The Signatry, saving him taxes and reducing the burden on his assets, all while giving more to the Kingdom.
Giving Part-Ownership of a Business: The Sollazzo Family
Michael Sollazzo made the decision to donate a portion of closely-held business interest into a donor advised fund at The Signatry. That decision led to a multiplier of 2.5x the amount of money that could go into the DAF and out to charity.
Guide: 3 Questions to Ask Before Selling Your Business
A lot of thought, reflection, and prayer go into the decision to sell a business. Your faithful commitment to steward this resource for God’s kingdom will shape that decision and the sale process itself. If you are in a season of decision-making, our business sale guide can provide helpful questions for reflection and discussion with your family.
Download Your Business Sale Guide