Contributions

You may contribute both liquid and illiquid assets to your DAF. NPT CAT reviews each proposed contribution on a case-by-case basis.

Contribution Process

Depending on the type of asset, NPT CAT's review and acceptance procedures vary. Please refer to the Illiquid Asset Contribution Guidelines available here, or contact NPT CAT for further guidance. If NPT CAT cannot accept a contribution for any reason, you will be notified as soon as possible.

Commonly contributed assets and their respective delivery instructions include:

  • Cash Contributions: You may deliver cash by check or wire. Checks should be made payable to NPT Charitable Asset Trust.
  • Publicly-Traded Stock: You may transfer stocks ("in kind") via wire to NPT CAT's brokerage account. Forms and instructions for this type of contribution are included online at www.nptcat.org, or can be obtained by calling NPT CAT. If you are contributing thinly-traded stock or restricted securities, NPT CAT
  • Other Property: Such contributions can include non-publicly traded assets (such as shares of a privately-held company), real estate, art, collectibles, mineral rights, etc. Delivery of these illiquid assets varies. NPT CAT manages all aspects of liquidating the asset with the goal of maximizing its value. All costs NPT CAT incurs to sell the securities (e.g., legal or appraisal fees) will reduce the net proceeds of your DAF. You are responsible for securing a qualified appraisal to substantiate your charitable tax deduction.

Once a contribution is accepted, NPT CAT assets are liquidated in a reasonable time period. Certain assets, such as publicly-traded stock, may be liquidated immediately while other contributions will be liquidated on a schedule to maximize the asset value.

The net proceeds of all liquidated contributions are reflected in the asset value of your DAF. DAF assets are intended for charitable purposes only.

Contributions are Irrevocable

Once NPT CAT approves and accepts your contribution, it is irrevocable. NPT CAT retains exclusive legal control over the contributed asset and you may not impose any material restriction or condition on the gift.

Testamentary Gifts/Gifts from Trusts

Contributions to a DAF can be a part of your estate planning. A DAF at NPT CAT can be the beneficiary of your bequest or other testamentary vehicle. It can also be the beneficiary of:

  • A retirement plan such as an Individual Retirement Account (IRA), or 401(k) plan.
  • A Charitable Remainder Trust, and certain Charitable Lead Trusts.
  • A life insurance policy.
  • A brokerage account or other accounts that allow you to designate beneficiaries.

There are many ways for NPT CAT to distribute your testamentary gifts to charity. Please contact NPT CAT for more information on how your DAF can make charitable grants beyond your lifetime. You should always consult a tax or legal advisor when setting up any testamentary gift, trust or other deferred gift.

Copyright © 2012 NPT Charitable Asset Trust