Brandon Davis of NCF - Charitable Giving | Charting Opportunities

In this episode of Portus Wealth Advisors' Charting Opportunities, Brandon Davis, President of the Carolinas for the National Christian Foundation (NCF), offered insights into strategic charitable giving for business owners. He explained how NCF, a 501(c)(3) grant-making foundation, assists donors, advisors, and charities in developing efficient and effective giving strategies, often involving Donor Advised Funds (DAFs).

Davis detailed the mechanics of Donor Advised Funds, likening them to "charitable checking accounts" where donors make irrevocable gifts (cash, appreciated securities, complex assets), receive immediate tax deductions, and then advise on grants to charities over time. He strongly advocated for donating appreciated assets (like stocks or mutual funds) instead of cash, highlighting the significant tax advantages: receiving a deduction for the full fair market value while avoiding capital gains tax on the appreciation, ensuring more funds reach the charity.

A key focus was the strategy of gifting interests in privately-held businesses prior to a sale, an area of NCF expertise with over $6 billion in such gifts facilitated. Davis explained how NCF handles these complex transactions, becoming a temporary owner of the gifted portion (often non-voting shares). Using a C-corporation case study ($16M value, 10% gift), he demonstrated how this pre-sale gifting strategy typically results in significantly more funds reaching the intended charities (e.g., $1.6M vs $1.27M) and substantial tax savings (avoiding capital gains on the gifted portion) compared to selling the business first and then donating cash. He noted the importance of qualified appraisals (which may include valuation discounts for minority interests), due diligence on operating agreements, and timing the gift before a legally binding sale agreement exists.

Davis also clarified that Donor Advised Funds currently have no mandatory annual payout requirements, offering flexibility. He addressed potential concerns from business buyers regarding a charity co-owning shares pre-sale, stating that clear, early communication typically alleviates issues, and NCF often participates in these discussions. Ultimately, he emphasized letting the donor's passion for specific causes drive the charitable planning process, making the steps involved more meaningful and maximizing impact.

A HUGE THANK YOU to Brandon Davis and the National Christian Foundation! Brandon's detailed explanation provides invaluable guidance for business owners looking to maximize their charitable impact through strategic and tax-efficient giving.

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Brandon Davis - Strategic Charitable Giving With NCF | Charting Opportunities

ORIGINAL MEDIA SOURCE(S):

Originally Recorded March 12, 2025
Charting Opportunities: Season 1, Episode 6
Images courtesy of: Brandon Davis and National Christian Foundation

00:00 Welcome & Introduction to Charting Opportunities

00:49 About NCF and When to Start Planning

03:29 Understanding Donor-Advised Funds (DAFs)

06:08 Funding & Investing in a DAF

13:11 What Can You Give? (Assets & Limitations)

14:50 Appreciated Securities: A Smart Way to Give

18:52 Giving a Business Interest to Charity

20:05 Case Study: Gifting a C Corporation Before Sale

28:55 Structuring Ownership: Voting Shares and Legal Prep

30:25 Comparing Scenarios: Sell First or Give First?

40:32 Timing and Long-Term Planning Strategies