When a business owner is gearing up to sell, they’re thinking about one thing: the number.
But what they keep can matter more than what they make, especially after capital gains taxes. Planning ahead can help your client preserve more of the proceeds and maximize the impact of what they can keep – and give.
And here’s where you come in.
The smart play: Contribute shares to a DAF before the sale
When your client gifts closely held business shares to a donor-advised fund (DAF) before the sale is legally binding, they can:
- Avoid capital gains taxes on those shares
- Receive an immediate charitable deduction (FMV and up to 30% of AGI)
- Create a legacy of giving on their timeline
Translation? More money stays in their pocket—and more impact is possible.
Real-life case:
One couple donated $9 million in business shares to a DAF before selling their staffing company.
Result? They avoided $1.8 million in capital gains taxes and used their fund to support clean water initiatives around the globe.
Timing is everything
If your client waits until after the purchase agreement is signed, it’s too late.
The IRS may treat the gift as a cash gift and the tax benefits disappear.
That’s why you need to ask the right question early:
“Have you thought about using a DAF before your sale closes?”
That one question could save your client millions and position you as the advisor who made it happen.
This is high-value, low-risk strategy
Even if they don’t give all their shares, contributing just a portion to a DAF can unlock major tax savings and future flexibility. You help them give with purpose, without sacrificing their personal financial goals.
And the best part? You don’t have to do it alone.
Ren makes it simple
We’ve helped hundreds of advisors walk their clients through this exact process. From due diligence to qualified appraisals, entity reviews to timing strategy, we’re your go-to charitable team.
You bring the opportunity. We’ll bring the technical support.
Learn more at reninc.com
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