Non-Cash Asset Donation Flow
TYPES OF NON-CASH ASSET DONATIONS:
Commercial and Residential Real Estate
Limited Partnerships and LLCs
Timber deeds, crops and
other agricultural assets
Mineral rights including oil & gas partnerships
Royalties and Patents
Tangible personal property including works
of art and other collectibles
Other miscellaneous capital assets
DECHOMAI DONATION IS 1-3%
WITH MINIMUM FEE OF $10,000
CONTACT US FOR ADDITIONAL INFORMATION
Duties Performed by Charitable Solutions, LLC / Dechomai Foundation, Inc.
NON-CASH DONATIONS IN TEN EASY STEPS
Donor wants to donate illiquid assets to “Favorite Charity” but cannot due to Charity’s lack of expertise, lack of time needed to complete the gift and desire to avoid taking on associated risks.
Charity contacts Charitable Solutions, LLC to discuss the potential donation.
Charitable Solutions covers the process and potential transaction with Donor and his/heradvisors. A timing and fee quote is provided and all parties agree to proceed.
Donor completes Memo of Understanding specifying all parties’ responsibilities,expectations & fees. Donor completes DAF Agreement after reviewing Policies
Client transfers asset to Dechomai Foundation to establish Donor Advised Fund.
Dechomai provides gift acknowledgement documents and assists with Form 8283.
Dechomai sells asset for the highest price possible as quickly as possible and completes Form 8282.
Donor recommends grant to “Favorite Charity.”
Upon due diligence and Board approval, Dechomai grants the entire net proceeds to Charity
Dechomai closes Donor Advised Fund
Helping our clients help their charities.
Like all charities, The Dechomai Foundation charges fees for accepting, managing, liquidating, and distributing non-cash gifts. Unlike other charities, however, Dechomai does not retain the proceeds indefinitely, nor receive operating contributions from any other source. Therefore we must charge a charitable administrative fee up-front. The fees cover our marketing, legal, accounting, administrative, and processing costs attributable to the individual gift as well as general overhead for the Foundation. We are proud that these fees have averaged only 1.8% since our inception on an average gift size of $3.8 million (median gift is $2.2 million).
Below is a limited sampling of non-cash donations received in the last 12 months, along with our charitable fees and the donation’s unique attributes. Following is a list of additional non-cash donation referrals and current cases.
Foreign Investment Co.
Value: $4.3 million
Charitable Fee: 1.5 percent
Unique Attributes: Channel Islands company, long-term hold, extensive KYC/AML required from management to approve the transfer.
Tech Startup Stock
Value: $3 million
Charitable Fee: 1.9 percent
Unique Attributes: Extremely urgent donation, completed in 7 days, sale proceeds included public stock subject to securities law restrictions.
Home in Malibu
Value: $1.85 million
Charitable Fee: 2.0 percent
Unique Attributes: Overseas donor, outright ownership, 21 offers received in 10 days.
Charitable Fee: 2.4 percent
Unique Attributes: Drawn out donation and sale process, drafting error indeed, sale split into two transactions.
Commercial Real Estate Investment
Value: $30 million
Charitable Fee: No fee for the first 12 months. 1.0 percent annually after twelve months
Unique Attributes: Significant minority position in LLC, underlying asset was an urban office building, debt on the property.
Value: $3.4 million
Charitable Fee: 1.8 percent
Unique Attributes: S-corporation, multiple stock sales to private buyers, gain and income taxable to the charity.