By Anthony Nasca, CEPA and Brad Stanek, CFP Financial advisors with Morgan Stanley

While writing a check is often the most simple way to give, it is rarely the most effective method for a marine dealer. We highlight several strategies that allow you to maximize your charitable impact while working to minimize what you pay in taxes. We realize that no one gives to charity purely for the tax benefits, but the more dollars you keep in your pocket, the more you can support the causes you care about most.

Donating appreciated assets

Boat dealerships often hold highly appreciated assets, and as an owner, you may also have old, highly appreciated stock positions. When you are making your donations during the holiday season, consider where the funds are coming from. For example, selling assets to donate cash can trigger capital gains tax, adding to your costs.

By donating assets directly to charity, you create a‘ win-win’ situation; you avoid paying the capital gains tax and receive fair market value for the tax deduction. This allows you to give even more to the cause – and less to the IRS – without impacting your dealership’ s cash flow.

Assessing a Donor Advised Fund( DAF)

We often find that the dealership business can be cyclical, with high income years followed by leaner ones. A Donor Advised Fund( DAF) is a tool that could help smooth out this volatility and enhance how you give money to charity.

A Donor Advised Fund is a charitable entity where you can contribute and maintain control over the funds. Think of this as your dedicated“ giving account.” For example, you can bunch contributions into a Donor Advised Fund during high income years to maximize your tax deductions in those years, the contributions are invested and continue to grow income tax-free while they wait, and you maintain flexibility to distribute grants to charity over time.

Leveraging charitable trusts and retirement assets

For those looking even further ahead, charitable trusts can offer significant advantages in retirement planning. For example, a charitable remainder trust( CRT) can convert an appreciated asset, like shares of a business, into a lifetime income stream for you, with the remainder going to charity.

Additionally, for those with substantial retirement assets like 401( k) s and IRAs, making qualified charitable distributions or naming a charity as a beneficiary are effective ways to pass tax-free value to the organization, while preserving more tax-favorable assets for your family.

Coordinating with your team

Just as you wouldn’ t make big business decisions without consulting with managers or other stakeholders, you shouldn’ t undertake these strategies in a silo. One of the most effective steps you can take is reviewing your situation and meeting with your advisor and CPA. Reviewing your tax situation before year-end can help you uncover valuable opportunities to bunch deductions, harvest losses and proactively manage your taxes.

Start now

Ultimately, while they are the most prevalent around the holidays, charitable gifting strategies can play a big role in your overall tax and financial planning picture. By being proactive, you can make an even greater impact with the causes that you hold near and dear to you.

With the right approach, dealers can navigate the uncertainties of planning and achieve a favorable outcome that aligns with their personal and financial goals. To help build out this plan, our team offers a complimentary service, the Total Wealth Plan, a 360-degree review of your dealership and personal financial situation.

Anthony Nasca, CEPA( anthony. nasca @ ms. com), is a certified exit planning advisor and financial advisor with Stanek-Haack Group at Morgan Stanley in Chicago, and Brad Stanek( brad. stanek @ ms. com), is an executive director and financial advisor with The Stanek-Haack Group at Morgan Stanley in Chicago.

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8 november / december 2025 www. boatingindustry. com