Non-Cash Donations

Has your charity ever refused a donation of a non-cash or illiquid
asset because a) you didn't have the expertise, the time or the staff to
devote to the project, b) you knew your finance department or Board
would likely decline the gift because of potential risks, or c) the donor
required a quick decision?  

Our organizational structure and operating expertise - with more than
180 non-cash donations successfully processed by our principals -
was created to solve these challenges in a risk-free way.  












The Opportunity
While the majority of charitable donations are cash and liquid, publicly-
traded securities, the majority of the nation's wealth is in illiquid
assets such as real estate.  Total stock market wealth is currently $12-
14 trillion, where the value of privately-held real estate alone is
estimated to be between $40 to 60 trillion.  According to the Wall
Street Journal (13-October-1999, page 2), of the $175 billion donated
to U.S. charities in 1998, only two percent had real estate as a
source.  Further, the New York Times stated in a 2002 article that "...
more than 80 percent of real estate offered to charity by donors is
initially declined."  This does not include other non-cash assets like
privately-held C-corporations, S-corporations, LLCs, art/collectibles
and limited partnerships which represent additional untapped assets
for charitable donations.

The Solution
Charitable Solutions, LLC, was formed to provide a comprehensive
solution for charities and donors.  Through our association as the
administrative and managerial services provider for Dechomai
Foundation, Inc., we have established a "customizable" one-stop
service for non-cash donations.

Charities hire us to assist them in receiving non-cash donations
directly or they can refer a non-cash donation to Dechomai
Foundation, Inc., where the donor establishes a donor-advised fund
and recommends a grant of the net proceeds back to the referring
charity.

A partial list of non-cash donations that our principals have handled
include:

Tangible personal property - such as art, collectibles, antiques and
other tangible personal property - is handled on a case-by-case
basis. We generally engage Laurence C. Zale at Laurence C. Zale
Associates, Inc., for any tangible personal property donations.

Charities tap into a donation source that:

Charities benefit by:

The Process
1. Charitable Solutions is introduced to a donor who wants to make a
non-cash donation.  The referring charity - with agreement from
Charitable Solutions acting as Administrator for the Dechomai
Foundation - can continue to manage the overall donor relationship
while making clear that the non-cash donation is going to be made to
another 501(c)(3) non-profit - Dechomai Foundation, Inc.  Dechomai
does not act as an agent of the referring charity.

2. Charitable Solutions conducts a preliminary interview with the
donor and their advisors over the phone to determine if the non-cash
asset is indeed a good contribution candidate.  If there is preliminary
agreement to proceed, Charitable Solutions will put together a "best
guess" outline of the overall process - including an estimate of fees
involved and contribution timing- usually within 24 hours.  This
includes a determination by the Board of Directors of Dechomai
Foundation as to whether or not they will approve the acceptance of
the non-cash donation and under what circumstances and conditions.

Although Charitable Solutions, LLC acts as the administrative service
provider for Dechomai Foundation,  Dechomai's Board has complete
authority over all contributions and grants.

3. Charitable Solutions then develops a more formal liquidation plan
for each non-cash asset.  Dechomai Foundation's goal is to receive
the highest offer possible as quickly as possible with the lowest total
expenses possible. Neither Charitable Solutions, LLC, nor Dechomai
Foundation, Inc., nor any related parties will receive any commissions,
fees, or other compensation related to the sale of a non-cash asset.
The only fee received by Dechomai Foundation, Inc., is an
administrative fee agreed to in advance with the donor and is
assessed on the net settlement proceeds only.

In every case where we have been engaged to assist with the
acceptance and liquidation of a non-cash donation - whether via
Dechomai Foundation, Inc., or working directly with another charity -
the sales prices have generally matched the appraised values the
donors have claimed on Form 8283.

4. Upon liquidation and upon the donor's request and Dechomai's
Board's approval, Dechomai Foundation will then issue a grant to the
referring charity for the net proceeds of the gift.  This usually occurs 30-
45 days after receiving the sales proceeds.

See our Non-Cash Donation Flow Chart in the Library.

In just the last 24 months, we have completed more than $30
million in non-cash donations!
"Bryan helped us save a major real estate
gift by offering several possible solutions.
Without his advice, I doubt the 7-figure
CRT (which will eventually roll into a donor
advised fund) would have occurred."

Connie Hendrix-Kral, Ed.D.
Director for Donor Relations
Northwest Arkansas Community Foundation