The Omaha Community Foundation seeks to serve as a resource for you and your clients. From the client who wants to make an immediate philanthropic impact, to the couple hoping to leave a legacy, to the family with a complicated tax situation, we have a team of philanthropic professionals to help you find the best charitable solution.

When donating to a charitable account, many individuals will donate cash when there are more tax-advantageous assets to give—assets that will enable individuals to make a larger charitable impact while reducing their tax bill. At the Omaha Community Foundation, we have a high level of expertise in handling the donation of a variety of assets, that include but are not limited to:

  • Cash value of a life insurance policy
  • LLC and limited partnership interests
  • Mutual fund shares
  • Private stock
  • Publicly traded bonds
  • Publicly traded stock
  • Real estate

For many donors, the donation of illiquid assets such as private C- and S-Corp stock can be a very effective and tax-efficient method of giving. These complex assets can have a very low cost basis for the donor and if the donor is the corporation founder, the cost basis could even be at zero. With the donation of these securities, the donor can minimize capital gains taxes and typically claim a deduction of the fair market value, not just the cost basis. These types of transactions are complicated and can be fraught with technical requirements and potential issues.

The Omaha Community Foundation focuses on a team effort, one that involves insight from the donor, their professional advisors, and our charitable experts. Through this team focus, we can easily answer all charitable questions and outline an asset donation plan that is perfect for the donor.

After a donor has decided on their preferred asset to donate, finding the perfect home for the asset can be difficult due to a limited pool of options. Private foundations are often considered but in many cases, they result in more complexities and higher costs than public charity options, thereby lessening the amount of money making it to the charitable causes. Moreover, contributions of the illiquid assets to a private foundation will result in a tax deduction of cost-basis, which is not the optimal solution for a low basis security. Increasingly, the use of donor advised funds to receive these types of donations have become very popular.

We would welcome the opportunity to further explore a potential partnership between you, your clients and the Omaha Community Foundation. Together, we can maximize the charitable deduction, convenience and overall satisfaction of your client.

Please contact our Donor Services Team at (402) 342-3458  or to learn more about the key considerations and opportunities of this tax-efficient, but often under-utilized client approach to charitable giving.