The art of donating property
February 25, 2015
In the world of charitable giving, contributing personal property, including fine art, real estate, vehicles, and other illiquid assets, can be a viable and effective way to reach your charitable goals.
For example, donors in the following situations may utilize Vanguard Charitable to accomplish their philanthropic goals:1
- a donor who received property (artwork, real estate property, a vehicle) through inheritance that he or she does not intend to keep;
- a donor holding a single valuable, illiquid asset who wants to make gifts to multiple charitable organizations;
- a donor holding property that is difficult or expensive to maintain.
Below, read how one Vanguard Charitable donor used a donor-advised fund to assist him with this donation process.
| A donor wished to contribute a piece of artwork by a famous European artist who was influential in the Expressionist movement. After consulting with Vanguard Charitable about the prequalification process and our minimum contribution requirements for complex assets, he was introduced to Charitable Solutions, LLC (the administrative and managerial services provider for Dechomai Foundation, Inc.) Vanguard Charitable partners with Charitable Solutions to assist donors seeking to contribute complex assets to charity. The organization agreed to accept the artwork and sold it at Sotheby's auction house for over $300,000. The proceeds from the sale were then contributed to the donor's philanthropic account at Vanguard Charitable, and the donor then made grant recommendations to support numerous charitable organizations with the funds. |
By utilizing Vanguard Charitable's property contribution resources, the donor benefitted in several ways: the donor received a tax deduction, supported numerous charities from the single contribution, and avoided paying a substantial capital gains tax on the asset, which would have been the case had he sold the asset and then contributed the proceeds to charity.
Though the timing and process of each property contribution may vary, the benefits can be long lasting and impactful, allowing donors to reach their financial and charitable goals. Review your entire portfolio and consider how a charitable contribution can allow you to realize the full potential of your property.
For more information about donating illiquid assets, review these resources:
Contribute special assets
Donating illiquid assets: Life insurance policy
Donating illiquid assets: Non-publicly traded stock
1The most common types of property contributed to donor-advised funds are real estate and closely held business interests.
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