Case Studies

New York City

Clearing a path: Coastal Bridge Advisors negotiations allow client to take immediate tax deduction

Our board negotiations and philanthropic planning expertise allowed a client to take an immediate and substantial tax deduction.

Our client held highly valuable illiquid private company stock, which he wanted to donate in order to take a charitable tax deduction.

Unsure to which charity he wanted to allocate funds, our client also found it difficult to identify a charity willing to accept a private equity valuation, which would enable an immediate tax deduction. And because of legal restrictions, the company was not able to share information with the valuation expert that would reflect the true price of the shares.

Coastal Bridge Advisors negotiates with board to make way for illiquid asset donation

We negotiated with the board to amend the bylaws thus enabling the valuation expert to have access to the necessary information. Furthermore, we were able to identify the only Donor Advised Fund, a charitable-giving vehicle, which allows the donor to give a completed gift of illiquid securities and take the deduction in the year it was gifted.

Donor Advised Fund accepts private company stock

The Donor Advised Fund accepted the private company stock at the true appraised value and the client was able to take an immediate tax deduction of up to 30% of his adjusted gross income.

The client was also able to appoint successor donors. In the event he should pass before allocating his gift, his children would be able to choose public charities that they feel passionately about and his commitment to philanthropy would be passed down to the next generation.