Give before sale, double the tax savings
When we think of giving, we usually think of bills, coins, and checks. But the greatest wealth for giving – and for some “cash-poor, property-rich” donors, almost the only wealth for giving – is in appreciated private non-cash assets. Think family and other privately-held businesses and investment funds in the form of S corporations, LLCs, and limited partnerships, stock options, restricted executive stock, real estate, and even cryptocurrency. The happy news is that giving such assets produces the largest deductions, consisting of exclusion from capital gains (the equivalent of a deduction) plus an actual charitable deduction. Such giving can nearly double the effective deduction and tax savings that the donor would have achieved by selling the asset and contributing the cash sale proceeds. This double capital gain and income tax reduction means you can give more – out of your tax bill rather than your personal income and estate.
The PCA Foundation enables much more than just cash giving to donor-advised funds, and more even than gifts of publicly-traded securities. We are equipped to help you plan, and then to receive, manage, and liquidate gifts of all or just a portion of almost any appreciated private non-cash asset, from residential or commercial real estate to a multi-million dollar business. But be sure to call us before you enter an agreement to sell the asset.
Reduce Your Taxes
Effectively double the deduction and tax savings for the appreciation in the asset, whether it is your vacation home, your real estate development, your cryptocurrency, or your software company.
Advance God’s Kingdom
Convert an appreciated asset, and the tax you would pay upon liquidation, into Kingdom funding.
How It Works
Transfer ownership of the desired portion of the asset to the PCA Foundation, BEFORE entering a sale agreement.
Exclude the capital gain in the contributed asset from taxable income, but then also deduct from taxable income its full market value.
Recommend grants of the sale proceeds at your own pace.
The Foundation has also recently facilitated:
- Donation of interest in technology S corporation, gift valued at more than $3M
- Donation of interest in online information and research LLC taxed as S corporation, gift valued at close to $1.5M
- Donation of real estate intended for residential development, gift valued at more than $1.5M
- Cryptocurrency gift valued at more than $50M
Our president served formally as general counsel to one of the country’s largest foundations, a leader in complex-asset giving, where he supervised the research, development, and implementation of all complex giving strategies.
If you’re interested in making a non-cash gift or have further questions, contact our president, Tim Townsend (eastern U.S.), or our senior director of complex gifts, Greg Mattox (western U.S.), or fill out this form. If you are ready to propose a non-cash gift (with no obligation), click to our Gifting Instructions page and click on the desired non-cash gift category.
additional complex services
We make a variety of donations possible.
When you give to a PCAF Charitable Remainder Trust, you take a deduction for the gift now, the trust pays you (or beneficiaries you name) an income stream for life or a period of years, and the trust pays the remainder to your PCAF donor-advised fund for ultimate distribution to your favorite charities. Advantages include increased income that is more secure and diversified, deferral of capital gains tax on the sale of any funding asset, and an immediate accelerated charitable deduction for a future gift.
A Qualified Charitable Distribution is a rollover of part of an IRA, up to $100,000 per year (indexed for inflation in years following 2023), of an owner over age 70 1/2. The amount rolled over counts against any required minimum distribution, and is excluded from gross income in the equivalent of a charitable deduction, with the advantage over a deduction of not blocking the IRA owner from also claiming the standard deduction. QCDs may be made to PCAF Single Charity Funds.
Our ministry includes helping you think about stewardship of your giving. You decide how much income and wealth to allocate to giving, and we help you plan how, when, and what to give during life and through the estate you leave in order to convert the most tax dollars to giving.