Think Outside the Check: Unlock Non-Cash Assets for Charity and Tax Benefits
Contributing non-cash assets to the ImpactAssets Donor Advised Fund can be a smart move for both your tax strategy and your charitable goals.
When most people think about charitable giving, they picture writing a check or donating publicly traded stock. However, for those with more diverse portfolios, there’s a powerful and often underutilized strategy: donating atypical and illiquid assets.
Perhaps you own rental property that you're ready to offload or hold cryptocurrency with significant gains. These assets can often represent some of your greatest wealth — and your greatest potential tax exposure if you sell them.
The challenge? Most charities and many donor-advised funds lack the infrastructure to accept these types of contributions.
The ImpactAssets Donor-Advised Fund (DAF) stands out as a leader in this space— offering donors the ability to contribute a wide range of non-cash assets* to fuel both philanthropic giving and impact investing.
What Can You Donate to the ImpactAssets Donor Advised Fund
Outside of cash and appreciated stock you can donate a number of assets Examples include:
- Private company stock
- Restricted securities
- Cryptocurrency
- Fine art and collectibles
- Real estate
- Life insurance
While many charities are unable to accept these types of gifts directly, ImpactAssets has established the necessary infrastructure and partnerships to handle the complexity.
Why Donate These Assets to the DAF?
Donating non-cash assets to the ImpactAssets DAF offers several advantages:
- Tax Efficiency: Donors can potentially reduce capital gains taxes and receive a charitable deduction for the fair market value of the asset.
- Philanthropic Flexibility: Once the asset is accepted and liquidated, the proceeds can be used to recommend grants to nonprofits over time, which means that you don’t have to make all your philanthropic decisions at once.
- Impact Investing Opportunities: ImpactAssets allows donors to invest their philanthropic assets through the curated ImpactAssets Investment Platform, aligning financial returns with social and environmental objectives, so that your ungranted dollars continue to work hard.
ImpactAssets: Your Expert Partner
In 2024 alone, almost 30% of contributions to ImpactAssets came in the form of non-cash assets. We have deep experience across a variety of asset classes and are uniquely positioned to accept and manage such assets because of our:
- Expert Client Service and Operations Teams: Skilled professionals assess and process each asset to ensure smooth execution.
- Impact Investment Platform: Donors can recommend investments on day one in in turnkey portfolios as well as private companies, funds, and nonprofits that reflect their values.
- Flexible Contribution Options: From real estate to private stock, ImpactAssets makes it possible to turn unconventional assets into meaningful impact.
Naturally, donating non-cash assets can add complexity. We encourage advance planning to allow for any lead time needed for valuation or liquidation of the assets. This will help ensure a smoother process, enabling you to make your impact within your desired timeline.
With the end of year approaching, contributing non-cash assets can be a smart move for both your tax strategy and your charitable goals. If you hold assets that are difficult to donate elsewhere, now is the time to explore how the ImpactAssets DAF can help unlock their philanthropic potential.
Reach out to us if you have questions — we are ready to help!
*Non-cash assets are subject to review and acceptance. Minimums may apply. Timelines for liquidating assets may vary depending on complexity of the asset and may also incur additional fees.
LEGAL AND PROGRAM DISCLAIMER: This is not a solicitation to buy or sell securities, nor a private placement offering pursuant to any private placement memorandum that must be issued to qualified investors. It is an informational description of charitably oriented, social purpose investment options that have been approved by ImpactAssets only for use in its donor advised fund asset base. It is only for use by its donors. This does not constitute tax advice. Please note there are a number of factors to consider when assessing the tax implications of gifts to charity. ImpactAssets does not provide legal or tax advice, nor does it assume liability for the tax consequences of any client. Individuals should consult with a tax specialist regarding the tax implications of employing a tax strategy before investing or making a charitable donation.
Any allocation to private debt and equity investment options may result in losses and illiquidity that will be borne solely by each donor advised fund account with investment in these options, as will associated program fees. Investment minimums apply. Grant making from the principal value will not be possible until distributions are returned to the ImpactAssets Donor Advised Fund. There is no guarantee of any recovery of capital. No assurance can be given that investment objectives or targets/projected returns will be achieved. Actual target may vary and should not be considered or relied on as a performance guarantee. As applicable, Fund Managers have not approved the information contained in the respective Fund profiles, including the assignment of risk ratings contained therein. The Units may be offered solely to, and subscriptions will be accepted only from “Accredited Investors,” as defined in Rule 501(a) of Regulation D promulgated under the authority of the Act, who are also “Qualified Clients,” as defined in Rule 205-3 of the United States Investment Advisers Act of 1940, as amended.
