As business owners approach retirement age, donating a portion of company shares to a donor advised fund can reduce taxable income, provide a charitable deduction, and support causes they care about — all at the same time.

For Al, those considerations came into focus last May during an annual fund review meeting with his Philanthropic Advisor, Nina Graham. As Al shared that he was preparing to sell one of his businesses, the conversation turned to the Foundation’s experience accepting non-cash assets, including privately held stock.

"All of a sudden, Nina knocked on the door when I'm preparing to sell this business,” said Al. “I want to give away more while I'm alive. And I didn’t know if I’d be able to do that.”

By September, after months of coordination with his advisory team — including attorneys, accountants, appraisers and investment bankers — Al was ready to donate his shares of the business to his fund at the Foundation.

Before accepting the gift, the Foundation conducted due diligence to ensure compliance and confirm there was a market for the asset. Updated IRS regulations required two separate transactions: first, the donation of Al’s shares to the Foundation, followed by a sale to the buyer. Working closely with Al and his co-investors, the Foundation finalized the sale just in time for year-end.

Within a few months, the value of Al’s privately held stock had been added to his donor advised fund — dramatically expanding his ability to give.

“My wife Mary and I strongly believe that we've been blessed to start with little or nothing financially to be able to achieve what we've done — so we're just trying to give back some of what we've been able to grow and earn,” Al said.

Al and Mary have had a donor advised fund at the Foundation since 2007 supporting organizations including the Basilica of Saint Mary, Hope Centers for Children of Africa, Westwood Community Church and his home church in Minneota, Minnesota, Hope Lutheran — where he created a scholarship fund for local high school seniors.