Business owners often hold illiquid assets on their balance sheets. Evan Lange of The Signatry explains why donating appreciated stock directly is better than waiting to convert it to cash, and how tax deductions create liquidity for the donor.
when people have an asset, again, they're illiquid. Then I think I heard a podcast that you gave several, I don't know, several times back ago about growing your, not your income, but your— Balance sheet. Balance sheet. That's right. Most business owners have a massive balance sheet, but they actually have very little income. And so giving is the same way. Let's give off of the balance sheet. There's so much more benefit by doing that versus just giving out of your income because your income's probably not that great anyway. You don't have that much cash. And so that's what we're really trying to help people see is when you give off the balance sheet, again, you're creating more charitable giving. You're creating actually some liquidity from a tax deduction standpoint. It's a great way that people just, they don't think about.
