Donor Advised Fund
A high-capacity donor can often sell a business or sell real estate with zero taxes so that there is money for him, money for his family, and money for your ministry but absolutely nothing for the tax man.
The Great Commission Foundation’s Donor Advised Fund, for example, is a tool that a donor can use to control his tax bracket — a tool that he can significantly fund in times of high profits, bonuses, a business sale, or some situation that forces his income up — or simply because he wants to have a more structured long-term giving program. This allows the donor to get his deductions up front but make his distributions over time.
There are several tools and techniques that a donor can employ with a business or in creating new businesses.
Sometimes the donor can create a business or spin-off part of an existing business or investment so that the cash flow never comes through his tax stream but instead goes directly into his ministry giving account. This can be accomplished by the use of a company foundation.
The donor can have gifts made from his corporation to his giving account as well as from his personal income.
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