Christy, Daryl Burton make historic gift

In the world of philanthropy, most gifts are given in the form of cash. Remarkably, 85% of total giving is processed through cash, while only 7% of wealth is held in cash. Non-cash assets, like real estate and business interests, represent enormous amounts of untapped giving potential.

Long-time Arizona philanthropists Christy & Daryl Burton realized one of their non-cash assets, interest in their commercial real estate business, could be leveraged to make a real difference. Through guidance from trusted advisors, including Howard Kesselman CPA and attorney Steve Good, and in partnership with the Arizona Community Foundation, the Burtons were poised to make transformative impact.

Recently, the Burtons contributed real estate assets totaling $136.7 million to ACF, making it the largest charitable gift to the foundation over its 43-year history. The $136.7 million gift is in addition to their original $25 million gift, also using the transfer of real estate assets, to establish their family foundation at ACF in 2015.

By donating some of their business interest to the Burton Family Foundation, an ACF supporting organization, they could take a charitable income tax deduction to help offset the tax on any business interest they later sold themselves. The Burton Family Foundation could then sell their donated business interest free of capital gains taxes, leaving 100% of the proceeds to grant to the community.

This artfully-planned gift maximizes the tax benefits of their giving in tandem with exit planning, helping the Burton Family Foundation make truly transformational, impactful gifts to the community they love–more than $20 million in transformational grants to the community to date.

As the Burtons planned a significant business transaction regarding their company's real estate holdings, Daryl and Christy jointly planned how this business event could be used to advance their philanthropy across the state. They saw this as both a business and a philanthropic opportunity and engaged ACF to make it possible to achieve these dual goals.

"This is a model for other individuals and families who wish to use illiquid assets, such as real estate, and other complex gifts, such as split business interests, to build a charitable legacy," said Steve Seleznow, President & CEO of ACF. "Working closely with Christy and Daryl has been a privilege. We have been honored to help them achieve their charitable vision for Arizona and provide them the full range of philanthropic services we offer the community. Supporting the Burtons by customizing their family foundation in alignment with their charitable goals and vision has been rewarding for all of us. They have created a truly amazing legacy for Arizona."

ACF has been helping donors and their professional advisors with giving non-cash assets for over 40 years. We simplify the process, help guide the donor in their giving journey, and serve as the charitable arm on the planning team. If you have questions on gifts of non-cash assets, please contact Senior Philanthropic Advisor Amber Ramirez, J.D. at aramirez@azfoundation.org or call 602.682.2021.