You’ve got a business-owner client on the brink of a major liquidity event. The deal’s moving fast, emotions are high, and the tax bill is looming.
They’re focused on retirement, a new venture, maybe finally building that lake house.
You’re focused on protecting the value of what they’ve built.
This is where smart business transition planning can make all the difference.
Use a donor-advised fund (DAF) before the business sale closes
This is one of the most overlooked strategies in business exit planning and one of the most powerful.
Here’s what happens when your client contributes business shares to a DAF before the sale becomes legally binding:
- Avoid capital gains tax on the gifted shares
- Receive an immediate charitable deduction (up to 30% of AGI)
- Keep proceeds invested in the DAF, growing tax-free
- Support causes they care about on their timeline
It’s one strategy with triple benefits: lower taxes, lasting legacy, and more flexibility.
Client story: Power of DAFs during a business exit
One couple donated $9 million in private company shares to a DAF before selling their staffing business.
They saved $1.8 million in capital gains taxes, and turned those savings into clean water access for communities around the globe.
Two of their executives—who held smaller ownership stakes—also gifted shares and each avoided $130,000 in capital gains tax.
This wasn’t just a tax play. It was a way to build personal legacies, engage their families, and give with real intention.
Financial advisors, especially business transition consultants, take note: The earlier you bring this strategy into the conversation, the more value you create.
Don’t worry about being the technical expert
You don’t have to memorize IRS rules on assignment of income or know the ins and outs of qualified appraisals. That’s what we do.
All you have to do is ask one key question:
“Have you considered using a donor-advised fund as part of your exit strategy?”
That question unlocks an opportunity to differentiate your value, deepen client trust, and partner with a team that knows this space cold.
Why this strategy works—for you and your clients
Builds loyalty: You’re not just advising on a sale—you’re helping shape a legacy.
Delivers real tax savings: Often millions.
Creates meaningful impact: On your client’s terms, over time.
Differentiates your practice: Especially in competitive succession and exit planning environments.
Here’s how to bring it to life:
- Start the philanthropy conversation early in the exit process.
- Recommend contributing shares to a DAF before the sale.
- Connect with us, we’ll help you and your client navigate every step.
At Ren, we partner with financial advisors and business transition consultants regularly to execute these plans with precision.
You lead the relationship. We deliver the charitable solution behind the scenes.
You bring the opportunity. We bring the strategy.
Let’s turn a business exit into a legacy your clients will be proud of.
Have questions or need help with a client scenario? Reach out at [email protected]
