© 2026 Become a Philanthropist LLC. Educational purposes only. Not legal or tax advice.
Effective Date: March 20, 2025 | Become a Philanthropist LLC
Become a Philanthropist LLC is not a law firm, accounting firm, registered investment advisor, or tax advisory firm. None of the content, articles, blog posts, calculators, projections, scenarios, case studies, or other materials on this Site constitute tax advice within the meaning of Treasury Circular 230 or any applicable federal or state law. No content on this Site should be relied upon for the purpose of avoiding tax penalties.
Tax laws are complex and subject to change. The information provided on this Site reflects general principles of U.S. federal tax law as of the stated effective date and may not reflect the most current legal developments, including changes enacted by the One Big Beautiful Bill Act (OBBBA, 2025), subsequent IRS guidance, or state-specific tax laws. Individual tax results will vary based on personal circumstances, applicable state law, asset type, holding period, cost basis, and other factors.
The income tax deduction available for contributions to a private non-operating foundation depends critically on the type of asset contributed. The following is a general summary for educational purposes only — it is not tax advice and does not substitute for consultation with a qualified tax professional:
| Asset Type | Deduction Basis | AGI Limit | Carryforward | Authority |
|---|---|---|---|---|
| Cash | Amount contributed | 30% of AGI | 5 years | IRC §170(b)(1)(B) |
| Publicly Traded Stock (held >1 yr) | Full Fair Market Value (FMV) | 20% of AGI | 5 years | IRC §170(e)(5); IRS Pub. 526 |
| Cryptocurrency / Digital Assets | Cost Basis only (NOT FMV) | 20% of AGI | 5 years | IRC §170(e)(1)(B)(ii); IRS Notice 2014-21 |
| Real Estate | Cost Basis only (NOT FMV) | 20% of AGI | 5 years | IRC §170(e)(1)(B)(ii) |
| Privately Held / Closely-Held Stock | Cost Basis only (NOT FMV) | 20% of AGI | 5 years | IRC §170(e)(1)(B)(ii) |
| Tangible Personal Property | Cost Basis only (NOT FMV) | 20% of AGI | 5 years | IRC §170(e)(1)(B)(ii) |
Capital Gains Elimination: Regardless of asset type, contributing appreciated property to a private foundation before any sale agreement is finalized may allow the foundation (as a tax-exempt entity under IRC §501(c)(3)) to sell the asset without incurring capital gains tax. This benefit applies to all asset types. However, the assignment of income doctrine may apply if a binding commitment to sell exists prior to the contribution. Consult a qualified tax attorney before proceeding.
Nothing on this Site constitutes legal advice. The Company is not a law firm and does not provide legal representation. Information about private foundation formation, governance, compliance, IRS regulations, excise taxes, self-dealing rules, and related topics is provided for general educational purposes only. The laws governing private foundations are complex and subject to interpretation. You should retain qualified legal counsel for all matters relating to private foundation formation, governance, and compliance.
Private foundations are subject to a comprehensive set of federal tax rules under IRC §§ 4940–4945, including but not limited to:
Violations of these rules can result in substantial excise taxes and, in egregious cases, termination of the foundation's tax-exempt status. Compliance requires ongoing legal and accounting oversight.
References to estate tax exemptions, gift tax exemptions, generation-skipping transfer (GST) tax, and related figures reflect general federal law as of the effective date of this disclaimer. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, established a permanent federal estate and gift tax exemption of approximately $15,000,000 per individual (approximately $30,000,000 for married couples) for 2026, indexed for inflation. These figures are subject to change by future legislation. State estate and inheritance taxes vary significantly and are not reflected in general figures cited on this Site. Consult a qualified estate planning attorney for advice specific to your situation.
Content on this Site discussing the contribution of appreciated assets to a private foundation before a business sale or other liquidity event is provided for general educational purposes only. The tax treatment of such strategies depends on numerous factors, including the timing of the contribution relative to any binding sale agreement, the nature of the asset, the foundation's organizational documents, and applicable IRS guidance. The IRS has challenged certain pre-sale contribution strategies under the assignment of income doctrine. You should consult with qualified tax and legal counsel before implementing any such strategy.
All financial examples, case studies, projections, and calculator outputs on this Site are hypothetical and illustrative only. They are based on simplified assumptions, general tax rates, and idealized scenarios that may not reflect your specific circumstances. Actual results will vary. Past performance of investment strategies is not indicative of future results. No representation is made that any strategy will achieve results similar to those illustrated.
This Site focuses primarily on U.S. federal tax law. State income taxes, state estate taxes, state charitable solicitation registration requirements, and other state-specific laws may significantly affect the strategies discussed. The Company makes no representations regarding the applicability or effect of state laws on any strategy discussed on this Site.
Before establishing a private foundation, contributing assets to a foundation, or implementing any tax strategy discussed on this Site, you should consult with:
For questions about this disclaimer, please contact: [email protected]
© 2026 Become a Philanthropist LLC. All rights reserved.