Non-Cash Donations 1. What is Dechomai Foundation and why was it established? Dechomai Foundation, Inc. is a national public charity headquartered in Atlanta, Georgia whose focus is on accepting and granting the donation of non-cash assets to charities, whether the charity is Dechomai or some other organization. The Foundation was established by professionals with extensive experience in both the non-profit and the for-profit arenas and whose collective vision is to dramatically increase charitable donations throughout the US by making it easier for other charities to accept assets that have traditionally been difficult to receive and liquidate. 2. How is Dechomai Foundation operated? Dechomai Foundation, Inc. is governed by a Board of Directors. All day-to-day managerial, administrative and operational functions are provided by Charitable Solutions, LLC an Atlanta, Georgia-based limited liability company. 3. How does Dechomai Foundation make it easier for other charities to accept non-cash assets? Dechomai Foundation allows other charities to outsource the expertise needed and the potential risks inherent in accepting many non-cash assets. The Foundation will, after approval from its Board of Directors, accept the donation of the non-cash asset, provide administrative services for holding and then liquidate the non-cash asset, and finally grant the net proceeds of the sale of the non-cash asset to the originating charity upon Board approval. 4. Who is Dechomai Foundation’s target market? Although the Foundation does not intend to actively solicit donations from individuals, Dechomai will work with anyone who wishes to donate a non-cash asset to any recognized US charity. The primary “market” for Dechomai’s services, however, will be other charitable organizations from which the non-cash donation will originate. These referring charities – whether due to lack of time, capacity, expertise or to avoid liability – will refer the donor to Dechomai Foundation which will in turn accept, administer and liquidate the non-cash donation and then grant out the net proceeds. 5. What is the relationship between the referring charity, the donor and Dechomai Foundation? The referring charity will be kept up-to-date on the donation process on a regular basis by Dechomai Foundation if so desired. The donor, however, will be making the donation to Dechomai Foundation and NOT the originating charity. Therefore all official communications will be between the donor and Dechomai Foundation. The donor and his or her representatives should be comfortable with and perform the appropriate due diligence on Dechomai Foundation, Inc. The donor may recommend that the net proceeds from the liquidation of the non-cash donation be made to the referring charity or other charities. That grant, just as is the case with the acceptance of the non-cash donation, is subject to approval by Dechomai’s Board of Directors. 6. Who sends out the written confirmation for a donation - the referring charity or Dechomai Foundation? All official communication pertaining to the specific non-cash donation will come from Dechomai Foundation, Inc. 7. What types of assets are accepted as donations to Dechomai Foundation?
8. What is the minimum size needed to make a non-cash donation worth referring to Dechomai Foundation? $100,000 or higher; the minimum charitable fee is $10,000 9. What are the fees and expenses involved in accepting and administering a donation? Dechomai Foundation will charge a small percentage fee for these services bases on a sliding scale of 1-3 percent based on the size and complexity of the asset. An initial audit is performed at no charge to determine the complexity, estimated time and estimated fee involved in accepting and administering the non-cash donation (up to three hours). 10. What is the process for selling a non-cash donation? A liquidation plan is developed for each non-cash asset. A large, national network of private and institutional investors has been developed to mitigate some of the market's inefficiency for illiquid, non-cash assets. Dechomai may also hire a broker to market the property. 11. How long does it take to accept, administer and then grant out the typical donation? As one might suspect, there really is no “typical” non-cash donation. From gift acceptance to granting the net proceeds can take anywhere from a couple of weeks to a few years, depending on the complexity and marketability of each non-cash donation. 12. Who should be involved in the donation process? A donor should involve everyone that donor typically consults on tax and estate planning issues. Neither Dechomai Foundation nor its administrative service providers nor any of its other affiliates provide tax or legal advice. Charitable Gift Annuities 1. Describe how a Dechomai charitable gift annuity works step-by-step. After the donor contacts Dechomai, he/she will be provided with a sample gift illustration. We then will provide a disclosure letter, fee schedule and gift annuity agreement. The donor transfers the assets to fund the gift annuity and executes the agreement. Dechomai makes the contractual payments as long as the donor lives and then places the residuum into a donor advised fund. The donor must leave instructions for the ultimate grant so that Dechomai may then approve a final distribution of 100% of the proceeds as a donor advised distribution. 2. How are the funds invested? Dechomai uses exchange-traded and index funds to keep fees as low as possible and rebalances the portfolio once each year. 3. What are the minimums? Dechomai has a minimum gift annuity of $25,000. 4. What assets can be used to fund gift annuities? Typically, cash or marketable securities are the funding assets, however, we may also consider various forms of non-cash assets on a case-by-case basis. Charitable Remainder Trusts 1. Describe how a Dechomai charitable remainder trust works step-by-step. After the donor contacts Dechomai, he/she will be provided with a sample gift illustration. We then will provide a disclosure letter and fee schedule. The donor’s attorney must create the trust naming Dechomai is trustee. The donor then transfers the assets to the trust. Dechomai is responsible for the trust investment management and administration for the entire term. When the trust terminates, the remainder will be transferred to a donor advised fund. The donor must leave instructions for the ultimate grant so that Dechomai may then approve a final distribution of 100% of the proceeds as a donor advised distribution. 2. How are the funds invested? Dechomai uses exchange-traded and index funds to keep fees as low as possible and rebalances the portfolio at least once each year. 3. What are the minimums? Dechomai has a minimum charitable trust size of $100,000. 4. What assets can be used to fund charitable trusts? Typically, cash or marketable securities are the funding assets, however, we may also consider various forms of non-cash assets on a case-by-case basis. |
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| Dechomai Foundation, Inc. |