Frequently Asked Questions You've Got Questions We've Got Answers Please take a look through our Q & As below. We've categorized them to help you find your answer quickly. Use the tab bar below to narrow your search. If you still can't find the information you need, please don't hesitate to contact us. Thanks! What is Dechomai Foundation and why was it established? Dechomai Foundation, Inc. is a national public charity headquartered in Atlanta, Georgia whose focus is on accepting and granting donations of non-cash assets to charities, whether the charity is Dechomai or some other organization. The Foundation was established by professionals with extensive experience in both the non-profit and the for-profit arenas and whose collective vision is to dramatically increase charitable donations throughout the U.S. by making it easier for other charities to accept assets that have traditionally been difficult to receive and liquidate. How is Dechomai Foundation operated? Dechomai Foundation, Inc. is governed by a Board of Directors. All day-to-day managerial, administrative, and operational functions are provided by Charitable Solutions, LLC, a Jacksonville, Florida-based limited liability company. How does Dechomai Foundation make it easier for other charities to accept non-cash assets? Dechomai Foundation allows other charities to outsource the expertise needed and the potential risks inherent in accepting many non-cash assets. The Foundation will, after approval from its Board of Directors, 1) accept the donation of the non-cash asset, 2) provide administrative services for holding and liquidating the non-cash asset, and 3) finally, grant the net proceeds of the sale of the non-cash asset to the originating charity upon Board approval. Who is Dechomai Foundation’s target market? Although the Foundation does not intend to actively solicit donations from individuals, Dechomai will work with anyone who wishes to donate a non-cash asset to any recognized U.S. charity. The primary “market” for Dechomai’s services, however, will be other charitable organizations from which the non-cash donation will originate. These referring charities–whether due to time constraints, limited capacity, lack of expertise, or desire to avoid liability – will refer the donor to Dechomai Foundation, which will, in turn, accept, administer and liquidate the non-cash donation and then grant out the net proceeds. What is the relationship between the referring charity, donor, and Dechomai? If the referring charity wishes, Dechomai Foundation will keep it up-to-date on the donation process. All official communications, however, will be between the Dechomai Foundation and the donor and NOT the originating charity. The donor and his or her representatives should perform due diligence to become comfortable working with the Dechomai Foundation, Inc. The donor may recommend that the net proceeds from the liquidation of the non-cash donation be made to the referring charity or other charities. That grant, just as is the case with the acceptance of the non-cash donation, is subject to approval by Dechomai’s Board of Directors. Who sends out the written confirmation for a donation? All official communication pertaining to the specific non-cash donation will come from Dechomai Foundation, Inc., not the referring charity. What types of assets are accepted as donations to Dechomai? Real EstateCommercial, residential, net leased property, limited partnerships and limited liability companies, mortgages, operating partnership units Non-Publicly-Traded StockRestricted stock (Section 144 and 145), closely-held stock (also known as “privately held”), S-corporation stock Other Non-Cash AssetsLimited partnerships and limited liability corporations, installment notes, and other miscellaneous assets Personal Property– cars, planes, and boats are generally not accepted – art, collectibles, and antiques are considered on a case-by-case basis What is the minimum size needed to make a non-cash donation worth referring to Dechomai? $100,000 or higher; the minimum fee is $10,000 What are the fees and expenses involved in accepting and administering a donation? Dechomai Foundation will charge between 1 and 3 percent for its services, based on the size and complexity of the asset. An initial audit is performed at no charge to determine the complexity, estimated time, and estimated fee involved in accepting and administering the non-cash donation (up to three hours). Who should be involved in the donation process? A donor should involve everyone he or she typically consults on tax and estate planning issues. Dechomai Foundation, its administrative service providers, and its other affiliates DO NOT provide tax or legal advice. What is the process for selling a non-cash donation? A liquidation plan is developed for each non-cash asset. A large, national network of private and institutional investors has been developed to mitigate some of the market’s inefficiency for illiquid, non-cash assets. Dechomai may also hire a broker to market the property. How long does it take to accept, administer and then grant out the typical donation? As one might suspect, there really is no “typical” non-cash donation. From gift acceptance to granting the net proceeds can take anywhere from a couple of weeks to a few years, depending on the complexity and marketability of each non-cash donation. Describe how a Dechomai charitable remainder trust works. After the donor contacts Dechomai, he/she will receive a sample gift illustration, disclosure letter, and fee schedule. The donor’s attorney must create the trust, naming Dechomai as trustee. The donor then transfers the assets to the trust. Dechomai is responsible for the trust’s investment management and administration for the entire term. When the trust terminates, the remainder will be transferred to a donor-advised fund. The donor must leave instructions for the ultimate grant so that Dechomai can approve 100 percent distribution of the proceeds as a donor-advised distribution. How are the funds invested for charitable gift annuities? Dechomai uses exchange-traded and index funds to keep fees as low as possible and rebalances the portfolio once each year. What are the minimums for gift annuities? Dechomai has a minimum gift annuity of $20,000. What assets can be used to fund gift annuities? Typically, cash or marketable securities are funding assets. However, we may also consider various forms of non-cash assets on a case-by-case basis. Describe how a Dechomai charitable gift annuity works. After the donor contacts Dechomai, he/she will be provided with a sample gift illustration. We then will provide a disclosure letter, fee schedule, and gift annuity agreement. The donor transfers the assets to fund the gift annuity and executes the agreement. Dechomai makes the contractual payments for as long as the donor lives and then places the residuum into a donor-advised fund. The donor must leave instructions for the ultimate grant so that Dechomai may then approve a final distribution of 100 percent of the proceeds as a donor-advised distribution. How are the charitable remainder trust funds invested? Dechomai uses exchange-traded and index funds to keep fees as low as possible and rebalances the portfolio at least once each year. What is the minimum size for charitable trusts? Dechomai has a minimum charitable trust size of $100,000. What assets can be used to fund charitable trusts? Typically, cash or marketable securities are funding assets. However, we may also consider various forms of non-cash assets on a case-by-case basis.