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Unlock the Charitable Value of Non-Cash Assets

Unlocking the charitable value of non-cash assets: securities, real estate, art + more Tweet This

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For many donors, philanthropy consists exclusively of gifts of cash. It makes sense: it is easy to write a check or process a wire; cash is easy to accept and cash gifts require little planning.

Yet, as professional advisors know, many affluent individuals and families hold significant wealth in the form of non-cash assets, such as marketable securities, real estate, art and closely held business interests.

The Chicago Community Trust can help you and your clients unlock the value contained in non-cash assets to fund their philanthropy. By funding a donor advised fund through the Trust, your clients can maximize their estate and tax planning, and launch a charitable giving vehicle that can be used for multiple generations.

While The Chicago Community Trust can accept a variety of non-cash assets, most potential gifts are assessed on a case-by-case basis. In order to better partner with you and your clients, here are some key points to be aware of when considering non-cash gifts:

  • Due diligence: The Chicago Community Trust must perform its own due diligence to ensure we are able to accept the contemplated asset. Some assets, such as commercial real estate, may require extensive review.
  • Timing: Most non-cash assets require additional time to review and process. As noted above, the due diligence process can be rather involved, and in some cases can take several weeks or months to complete.
  • Appraisals: The donor considering a non-cash asset will be responsible for obtaining an appraisal from a qualified third party in order to substantiate the value of the contribution.

With the end of the year fast approaching, we encourage you and your clients to contact us as soon as possible with inquiries about potential non-cash gifts. To assist you and your clients, we have developed a library of materials to help guide the conversation:

Gifts of Non-Cash Assets:
Art and Collectibles
Closely Held Business Interests
Publicly Traded Securities
Real Estate

 

If you have questions or would like more information about charitable gifts of non-cash assets, please contact Tim at tbresnahan@cct.org or (312)565-2832.