Charitable Leverage Strategy

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Charitable LLC (CLLC) Strategy

Charitable LLC (CLLC) strategies are designed to help individuals potentially reduce capital gains taxes while also supporting charitable causes and maintaining long-term investment flexibility.

In certain structures, appreciated assets may be repositioned into a charitable planning structure prior to sale, allowing investors to potentially redirect dollars that would otherwise go to taxes into investment assets designed for future growth and charitable impact.

Support causes
you care about.

Preserve more
capital for
your future.

Investors may receive a combination of:

Potential benefits may include:

Potential reduction of capital gains taxes by up to 99% depending on structure and facts

Ability to redirect capital gain tax dollars into invested assets for future growth potential

Potential tax - efficient or tax - free growth opportunities depending on structure

Support charitable organizations and causes

Maintain strategic control and flexibility of investment assets

May be used alongside business sales, highly appreciated assets, or concentrated positions

Important items to understand when evaluating the structure:

Proper legal structuring a nd implementation is critical

The charitable organization should be qualified and independent from the person donating assets

Timing of the structure prior to the sale event is extremely important

Legal, tax, and compliance documentation should be re viewed carefully

Sponsor, legal team, and charitable partners should have substantial experience with these structures

Coordination with a CPA and legal advisor is essential

Example:

An individual with a $10,000,000 capital gain at a 25% tax rate may face approximately $2,500,000 in capital gains taxes.

Through a properly structured CLLC strategy implemented prior to the sale, the new tax liability may potentially be reduced to approximately $25,000, creating a potential tax savings of approximately $2,475,000 while also supporting charitable initiatives and preserving additional capital for future investment opportunities.

$10,000,000

Capital Gain

25%

Tax Rate

$2,500,000

Potential Capital
Gains Taxes

$25,000

Potential New
Tax Liability

$2,475,000

Potential Tax Savings

Significant tax savings. Greater impact. More for your future.

This is not tax or legal advice.

Investors should consult their CPA or tax advisor regarding their specific situation.

Opportunity Zone Strategy

Defer and exclude capital gains through qualified opportunity zone investments