Key takeaways
Situation: A donor wanted to make a significant gift to support Ukraine but was facing high capital gains taxes on a valuable asset.
Solution: She contributed the asset, a treasured emerald ring, to a donor-advised fund (DAF) to avoid capital gains and maximize charitable impact.
Impact: The ring was sold tax-free through the DAF, allowing 100% of the proceeds to be used for humanitarian aid in Ukraine.
Situation
In early 2022, as the world watched Russia’s invasion of Ukraine unfold, Betsy was deeply moved. The unfolding humanitarian crisis spurred her into action. Betsy turned to something she cherished: a radiant emerald ring that had been in her possession for years. Selling the ring could generate real, tangible support. But she quickly realized that an outright sale would result in a heavy capital gains tax, nearly 24%, cutting deeply into the potential impact of her gift.
Solution
Determined to ensure every dollar supported relief efforts, Betsy partnered with her financial advisor to explore a smarter way to give. Together, they turned to Ren to use a donor-advised fund (DAF). Betsy contributed the emerald ring directly to the DAF, which then handled the auction. Because assets donated to a DAF can be sold without incurring capital gains taxes, the full value of the ring was preserved and available for charitable grantmaking.
Impact
The auction of Betsy’s ring yielded a substantial donation without any loss to taxes and every dollar went directly to support humanitarian efforts in Ukraine. Thanks to smart charitable planning and the flexibility of a DAF, Betsy was able to turn a treasured heirloom into meaningful impact at a moment the world needed it most.
Have clients with valuable or appreciated assets they want to give? Let’s talk about how a DAF can turn those assets into maximum-impact philanthropy at [email protected].
