Charitable Giving Strategies for the Business Owner
If you hold stock in a closely held business, you may be able to use that stock as a powerful way to support your charitable goals in the future.
Closely held stock* is most often used in the form of an outright gift. You can make a gift of closely held stock as long as the constituting documentation for the business permits additional owners and the business is debt-free. The donation of closely held stock first requires you to value the interest in the business entity.
Review this checklist to see if you may benefit from donating closely held stock. Then, consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference.
- You are a majority shareholder in a closely held corporation.
- You would like to remove retained earnings from the corporation, without having them taxed again.
- You would like to maintain a controlling position in the corporation's outstanding stock.
- You would like to avoid capital gains taxes on the shares you donate to Innovia Foundation.
- You would like to receive a federal income tax deduction for the full appraised value of the gift.
- You have a charitable intent.
Click on the links below to see the additional ways to fund your gift with closely held stock:
* A gift of closely held stock requires special handling, so you should always consult with your legal or tax advisor first.
- Contact Innovia’s Gift Planning Team at 509-624-2606 or firstname.lastname@example.org for additional information on giving a gift of closely held stock.
- Seek the advice of your financial or legal advisor.
- If you include Innovia Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Innovia Foundation
Address: 818 West Riverside Avenue, Suite 650, Spokane, WA 99201-0909
Federal Tax ID Number: 91-0941053
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. If you do not currently have a professional advisor, please contact our office for a list of current professional advisors. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.