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March 3, 2026 - Mission Advancement and HighGround Advisors recently collaborated on this article exploring how complex assets can play a strategic role in fundraising initiatives.

Most charitable gifts are made in cash. Yet the majority of wealth in the United States is held in noncash assets such as business interests, real estate and other appreciated investments. In fact, studies estimate that more than 90 percent of household wealth is held in noncash assets. For nonprofit leaders pursuing transformational gifts, this reality presents a significant opportunity. For many organizations, the largest gifts in capital campaigns and strategic funding initiatives come from noncash assets. Organizations preparing for significant fundraising efforts often discover that complex assets play a critical role in securing transformational leadership gifts. Yet many nonprofit leaders hesitate to explore these opportunities because conversations around complex assets can feel technical or unfamiliar. When nonprofit leaders understand how to navigate these conversations, they open the door to new possibilities for generosity and mission growth.

Why Complex Assets Matter

Many donors assume the simplest charitable strategy is to sell an asset and donate the proceeds. In reality, donating the asset itself can often provide significant advantages.

For donors, gifts of appreciated assets may allow them to:

• Avoid capital gains taxes on appreciated property
• Receive a larger charitable tax deduction
• Maximize the total value of their gift to the organization

For nonprofits, these gifts can unlock transformational contributions that might not otherwise be possible through cash alone.

Of course, cash remains the most common and simplest form of giving. It is easy for both donors and nonprofits to process and manage. However, when organizations limit conversations to cash gifts alone, they may unintentionally limit how donors are able to support the mission. Complex assets create an opportunity for donors to steward their resources wisely while increasing their philanthropic impact.

How Nonprofit Leaders Can Approach Complex Asset Gifts

Donors are rarely motivated by tax strategies alone. They are motivated by impact. That is why conversations about complex assets should always begin with the mission. When leaders clearly communicate the need and vision of the organization, donors often become open to exploring the most effective way to structure their gift. For nonprofit leaders, this means approaching conversations with curiosity and preparation.

Several principles can guide these discussions:

• Lead with mission and impact. Donors give because they believe in the work of the organization. Begin by sharing the vision for what a transformational gift could accomplish.
• Expand the conversation beyond traditional cash giving. Many donors are unaware that they can give appreciated assets. Simply opening the door to these options can expand the possibilities for generosity.
• Engage knowledgeable advisors. Complex asset gifts often require legal, financial or tax expertise. Surrounding your organization with trusted advisors helps ensure the process is handled responsibly and effectively.

When leaders approach these conversations thoughtfully, donors often welcome the opportunity to structure gifts in ways that maximize both their philanthropic impact and financial stewardship.

Key Considerations for Accepting Complex Assets

While complex assets can unlock significant gifts, nonprofits must approach them with thoughtful policies and due diligence. Healthy organizations establish clear gift acceptance policies and consult trusted advisors before accepting noncash assets.

BEST PRACTICES:

• Conduct thorough due diligence. Verify ownership, inspect property when applicable, review relevant agreements and understand any liabilities associated with the asset.
• Consult experienced advisors. Legal counsel, financial professionals, and industry experts can help identify risks and ensure proper handling of the gift.
• Understand tax deduction requirements. While donors should seek their own financial counsel, nonprofits should be familiar with IRS requirements, such as qualified appraisals for certain gifts.
• Evaluate the appropriate giving structure. Some donors may prefer an outright gift of the asset, while others may utilize vehicles such as donor-advised funds or charitable trusts.

COMMON PITFALLS TO AVOID:

• Do not value the asset for the donor. Nonprofits should provide a receipt acknowledging the gift, but should not assign a monetary value to the asset.
• Avoid pre-arranged asset sales. If a donor secures a buyer before donating an asset, the IRS may treat the transaction as a taxable sale.
• Be mindful of partial interest rules. In most cases, donors must contribute their full interest in an asset to receive a charitable deduction.
• Consider potential costs to the nonprofit. Certain assets may create tax obligations or ongoing expenses. For example, income from some assets may trigger an Unrelated Business Income Tax (UBIT), and gifts such as S-Corporation shares can create additional tax considerations for nonprofits. Organizations should also consider potential carrying costs such as property management, insurance, or maintenance.

Clear policies and thoughtful evaluation help ensure complex asset gifts advance the mission while protecting the organization.

Preparing Your Organization

Organizations that successfully receive complex asset gifts rarely do so by accident. They prepare by establishing clear policies, building relationships with knowledgeable advisors and equipping their development teams to guide thoughtful donor conversations. When these elements are in place, nonprofit leaders can approach complex asset gifts with confidence.

Instead of limiting generosity to cash contributions alone, organizations can expand the ways donors participate in advancing the mission. Organizations preparing for major fundraising initiatives or capital campaigns should intentionally evaluate how complex assets might play a role in their strategy. When leaders are equipped to have these conversations and supported by the right expertise, they unlock new possibilities for generosity and accelerate the impact of their mission. 

If you have questions about leveraging complex assets, our Trust and Legal team is here to help. Contact us at 214.978.3300 or legalteam@highgroundadvisors.org.