Bryan Clontz was Atlanta Jewish Foundation’s national guest speaker in June at an educational program for financial advisors and our fundholders. The founder of Charitable Solutions, LLC, Clontz is as an industry leader in strategies to optimize illiquid, or non-cash assets for charitable deductions.
What are illiquid assets? Residential and commercial real estate, privately held businesses, art, and collectibles are all considered illiquid assets. Among the wealthy, complex assets are typically worth more than twice the value of a stock and securities portfolios. Yet stunningly, illiquid assets only represent six to eight percent of annual charitable giving.
High net-worth baby boomers are driving the shift to illiquid asset giving. “They’ve been successful, they’ve taken care of their kids and families financially, and are starting to think about succession planning, or selling their businesses,” Clontz says. With residential and commercial real estate holdings he has advised many clients to give a percentage of the asset, not the whole. “This kind of donation offers tremendous appreciable valuation, and great tax advantages.”
Advisors who understand and specialize in illiquid assets have been able to exponentially increase the growth of non-cash gifts to charities. Not sure where to start, but know end of year is coming fast? The Foundation can help with our dedicated experts and flexible gift acceptance policy.
Although by far the biggest donated assets are real estate and privately held business entities, Clontz joked that his job is to help wealthy people give “weird things to charity.” He told of Dr. Amar Bose, the electrical and sound engineer who started the Bose Corporation. In 2011, Dr. Bose donated 50.1 percent of the company to Massachusetts Institute of Technology (MIT) in the form of non-voting shares to sustain and advance MIT’s education and research mission. Another unusual gift was the owner of the Kansas City Royals who donated the entire team to the Greater Kansas City Community Foundation.
Atlanta Jewish Foundation would be delighted to work with you and your financial advisor to explore the charitable potential of your illiquid assets for maximum tax benefits and the philanthropic opportunity to do good in the world.