Estimate how much of a real estate, business interest, or other illiquid asset gift actually reaches charity — and compare it to selling it yourself first.
Real estate, private business interests, and other illiquid or leveraged assets usually can't go straight into a typical donor-advised fund. Instead, donors generally route these gifts through an established charitable organization that specializes in accepting, liquidating, and processing complex assets on their behalf — paying any unrelated business income tax (UBIT) that's actually owed — before forwarding the net proceeds to your DAF or charity of choice. Every processing organization sets its own fees, so treat the numbers below as a starting estimate — not a quote.
Real estate, an LLC interest, S-corp stock, or similar — transferred to the processing charity, not directly to your DAF.
It reviews the asset, estimates your fair-market-value deduction, and prepares to sell.
The charity liquidates the asset and pays whatever unrelated business income tax is actually owed — this varies by entity type.
This onward gift is itself a charitable contribution — and it's what lets the charity deduct up to 60% of its own UBTI.
The funds are now in your donor-advised fund, ready to grant to the causes you choose, on your timeline.
Enter your asset details below. Results update as you type — illustrative estimates only, not tax advice.
Why LLC/partnership interests are usually cleaner: Capital gain on the sale of a partnership interest is generally excluded from UBTI under IRC §512(b)(5). Any portion tied to "hot assets" — unrealized receivables or substantially appreciated inventory under §751 — is ordinary income and isn't shielded.
Why S-corp stock is usually more exposed: Under §512(e), all pass-through income and gain from S-corp stock held by a tax-exempt entity is treated as UBTI — there's no partnership-style exclusion. A tax-free F-reorganization to an LLC before the gift is sometimes used to avoid this, but that requires professional guidance well before the contribution date.
The 60% deduction cap: A charitable deduction against UBTI is limited to the lesser of the gift amount or 60% of UBTI, under §512(b)(11). Any excess carries forward up to five years.
Debt-financed property: If the asset carried acquisition debt, a portion of the gain can become taxable under §514 regardless of entity type — based on the debt-to-basis ratio. This calculator doesn't model debt-financed property separately; if your asset carries debt, get an estimate from the processing charity directly.
Disclaimer: These are illustrative estimates for educational purposes only. Actual UBIT, fees, and net proceeds depend on the specific processing charity, your entity's structure, applicable state rules, and your individual tax situation. This tool does not constitute tax, legal, or financial advice — consult a qualified tax professional and the charity's own gift-planning team before contributing.