As with any appreciated asset, there can be a significant tax advantage to donating an interest in a business. Charitable organizations may not be able to accept the giſt directly because they're not in a position to sell it. But most donor-advised funds (DAFs) can receive an interest in a business or other kinds of complex assets such as real estate. You could receive an immediate deduction for the value of the business, and then you can decide later how you would like the DAF to distribute the sale proceeds to charitable organizations you support. Consider the possible tax advantages of donating a business interest. If you sell it, you'll be taxed on the appreciation in its value, likely at a capital gains rate of 20%. There may also be a net investment income tax of 3.8%, plus possible state taxes. If you then give the aſter-tax proceeds to charity, your tax deduction for that giſt will be substantially lower than the fair market value of the business interest. Donating the business interest directly to a nonprofit or a DAF will give you a larger deduction—and result in a greater benefit for charity.