Have you ever wondered how to make your giving go further? Some of the most impactful gifts come from assets you already own—from business interests to real estate. Donating these complex assets to a donor advised fund (DAF) at Austin Community Foundation can reduce your tax burden and amplify your giving power for years to come. And with ACF as your philanthropic partner, giving complex gifts can be surprisingly simple.
Examples of Complex Assets
Complex assets include various types of investments, such as business interests, stocks, real estate, retirement assets, and more. One of the advantages of working with ACF is our expertise in handling complex gifts and providing personalized support to help donors maximize their charitable impact.
Here are a few examples of how donors can use complex assets to boost their giving:
- Stocks
A family wanted to put their closely held securities to work for the benefit of the community. Their stock had appreciated over four decades making it nearly impossible to sell without incurring capital gains taxes. Our team guided the donors through the process and used their donated securities to open a DAF, consolidating their ongoing giving to several local nonprofits. By partnering with ACF, they transformed a complex asset into a simple, yet powerful, tool for their family philanthropy.
- Business Interests
A business owner preparing to sell part of her company wants to support STEM education in a lasting way, while also mitigating the tax burden of the sale. By donating part of her ownership interest to ACF before entering into a contract, she could eliminate capital gains taxes on that portion, increase the amount that went to charity, and establish a fund that supports students for years—turning part of her life’s work into a legacy.
- Real Estate
A donor with a passion for education found a way to turn a real estate asset into an opportunity to support Breakthrough Central Texas, a local nonprofit dedicated to improving college access. Our team thoroughly assessed the donor’s property, accepted the gift, managed the sale of the property, and disbursed the proceeds to Breakthrough Austin. By donating this real estate asset to ACF, the donor was able to make a bigger impact than if he sold the home himself and then donated the proceeds.
Why Donate Assets to ACF?
When you donate complex assets to a DAF at ACF, there are a few key benefits:
- In most cases, you can avoid or mitigate the capital gains taxes that would be incurred if you sold the assets outright.
- If you’ve held the asset for more than one year, you may be able to claim a charitable deduction for the fair market value of the donated asset rather than just your original investment cost.
- When you open a DAF at ACF, you’ll have a trusted partner offering local expertise, flexible ways to give, and personalized support throughout your philanthropic journey.
Don’t Wait to Plan
Waiting too long to consider donating your complex assets may limit your options and reduce potential benefits. By connecting with ACF early to develop a personalized giving strategy, you can maximize your philanthropic power and tax benefits. ACF is here to help you with everything from first-time giving to leaving a legacy in your community.
Get started on your giving strategy by reaching out to heretohelp@austincf.org.