Senior Gift Planning Consultant, Lynn M. Gaumer, J.D., CAP®, joins the blog to provide you with resources that can help your nonprofit accept certain gift types you might normally turn down.
Have you ever had to tell a supporter that your organization could not accept a noncash or illiquid asset? Or that they could not create a charitable gift annuity because your organization is not registered in a certain state or does not have the capacity to administer them?
Perhaps these limitations come from your staff’s lack of time or expertise. Maybe your board of directors does not want to accept the potential risks. In my role as senior gift planning consultant, I often hear these challenges…but I have good news: There are ways to say yes to a gift!
Here are five resources you can turn to for assistance when presented with a potential gift of noncash or complex assets.
Community Foundations
These are grantmaking public charities dedicated to improving the lives of people in a defined local geographic area. And they often share your vision. There are more than 900 of these trusted partners nationwide, so there is likely one near you or your donor that you can turn to for guidance. If you need further assistance, you can use a Community Foundation Locator that lists those in the United States. They can often accept gifts that your organization cannot, such as closely held business interests, tangible personal property or real estate.
Donor Advised Funds
Donating noncash assets to a DAF can be a win for everyone. Here’s how it works:
- The donor transfers noncash assets to a DAF-sponsoring organization.
- A sponsoring organization establishes an account in the donor’s name. (The donor can make additional contributions at any time.)
- The sponsoring organization sells the asset, and the donor recommends a grant of the proceeds to your nonprofit.
Many sponsoring organizations can accept a variety of noncash assets, such as business interests, tangible personal property, cryptocurrency and real estate.
According to the Fidelity 2024 Giving Report (pdf download) about two-thirds of DAF contributions were made in noncash assets. Last year alone, donors contributed $1.4 billion in non-publicly traded assets. Donors contributed 25% more cryptocurrency assets to Fidelity Charitable in 2023 than they did in 2022.
Charitable Solutions, LLC
Gifts of complex assets, such as business interests or cryptocurrency, are not an issue for Charitable Solutions, LLC, a planned giving risk management consulting firm. It offers a wide range of services including noncash asset acceptance and disposition, life insurance appraisals and risk management for charitable gift annuity programs. Bryan Clontz, PhD, CFP®, CLU®, ChFC®, CAP®, AEP®, RICP®, CBP, ChSNC®, is the founder and CEO. He has a wealth of experience and is also a dynamic speaker.
Realty Gift Fund
Real estate is America’s largest asset class, yet many organizations either do not accept real estate or have limited discretion when accepting it. Realty Gift Fund, an invaluable resource, is a qualified 501(c)(3) organization that exclusively accepts gifts of real estate through outright gifts and bargain sales.
The proceeds (less costs and fees) from the sale of the real estate can be directed to your organization. Your nonprofit never assumes any title or financial risk, therefore eliminating any liability.
National Gift Annuity Foundation
Your CEO, CFO and board may be opposed to offering charitable gift annuities due to the financial liability risk and administrative headaches. Your organization may also be concerned about being registered in the states your donors live or having enough time and resources to dedicate to the process.
You are not alone. Many organizations turn to third parties to ease these concerns. In fact, according to a recent American Council on Gift Annuities survey, the number of nonprofits that now outsource their gift annuity administration has increased dramatically to 58%. Only 31% use their business office alone or partner with the development office.
The National Gift Annuity Foundation is one outsourcing option. It offers a turnkey solution for nonprofits of all sizes, in all states and in all phases of planned giving. Its program eliminates the administrative details and hassles. Several Stelter clients use its services with great success.
So, before you say no, explore the wealth of resources available to you so you can say “yes” to the gift.
Get Your Questions Answered
Join Lynn for a complimentary webinar featuring a panel discussion with Bryan Clontz, Founder and President of Charitable Solutions, LLC; Rebecca Bibleheimer, Senior Complex Gifts Officer, Oregon Community Foundation; and Johnne Syverson, Vice President of Gift Annuity Services, National Gift Annuity Foundation. The webinar will be held live on August 21at noon CDT.
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