Non-Cash Gifts

We Make Difficult Donations Easy

The Dechomai Foundation’s foremost reason for existence is to help other charitable institutions receive non-cash donations – donations that the charity might not otherwise be able to accept. We manage the entire process – from receiving the non-cash asset to managing and liquidating the asset to finally granting the net proceeds to the charity recommended by the donor (almost always the originating charity).

We have extensive experience in accepting commercial and residential real estate, many types of limited partnerships, closely-held stock, restricted stock, S-Corp stock, life insurance, notes, seats on financial exchanges, and other unusual assets – all subject to Board approval, of course.

A comprehensive description of the way a “typical” non-cash donation is handled can be found in the Non-Cash Donation Work Flow Chart. While we pride ourselves in being capable of handling just about all types of non-cash donations, there are instances when our Board may decline an asset.

Non-Cash Asset Donation Flow

TYPES OF NON-CASH ASSET DONATIONS:

2

Commercial and Residential Real Estate
Farmland
Limited Partnerships and LLCs
International Assets
S-Corp Stock
C-Corp Stock
Restricted Stock
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.

  • Advisor Relationship Management Frequent Communication
  • Donor Relationship Management Initial and Ongoing Communication
  • Gift Negotiation Donation, Responsibilities, Timing, Policies, DAF Agreement, Memo of Understanding
  • Asset Due Diligence Site Visit and Inspections, Environmental Appraisal, Tax Implications, Insurance Implications, Mortgage Implications, Liability Management, Legal Implications, Management Implications, Regulatory Implications
  • Dechomai Asset Receipt Manage Property During Holding Period
  • Liquidation Developing Sales Plan, Hiring and Managing Appropriate Professionals
  • Grant Recommendation Due Diligence
  • Administrative and Financial Operations

NON-CASH DONATIONS IN TEN EASY STEPS

  • 1

    Step one

    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.

  • 2

    Step Two

    Charity contacts Charitable Solutions, LLC to discuss the potential donation.

  • 3

    Step Three

    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.

  • 4

    Step Four

    Donor completes Memo of Understanding specifying all parties’ responsibilities,expectations & fees. Donor completes DAF Agreement after reviewing Policies

  • 5

    Step Five

    Client transfers asset to Dechomai Foundation to establish Donor Advised Fund.

  • 6

    Step six

    Dechomai provides gift acknowledgement documents and assists with Form 8283.

  • 7

    Step Seven

    Dechomai sells asset for the highest price possible as quickly as possible and completes Form 8282.

  • 8

    Step eight

    Donor recommends grant to “Favorite Charity.”

  • 9

    Step Nine

    Upon due diligence and Board approval, Dechomai grants the entire net proceeds to Charity

book
  • 10

    Step Ten

    Dechomai closes Donor Advised Fund

Non-Cash Examples

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 2.2% since our inception on an average gift size of $2.3 million (median gift is $1.4 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.

Dechomai Foundation

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.

Unimproved Farmland

Value: $390,000

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.

Bank Stock

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.

Sample Asset Referrals and Current Non-Cash Cases

  • Private Stock Transaction with ESOP Purchase
  • International Real Estate in Uganda
  • Restricted Public Stock
  • Unallocated Precious Metals
  • Various LLC and LP Interests
  • Private Foundation Donation of Real Estate Interests
  • Private Equity and Hedge Fund Interests
  • Offshore Investment Company
  • Bitcoin and Other Cryptocurrency
  • Closely-Held C-Corporation Stock
  • Closely-Held S-Corporation Stock
  • Offshore Insurance and Mobile Gaming Company Interests