Small Business Interests or Closely Held Stock

A gift of closely-held stock is a great opportunity to generate charitable and tax benefits from one of your primary assets.  It often requires that the organization receiving the gift understand and cooperate with the donor to ensure the best outcome.

The Foundation is a good partner for charitable gifts of closely-held stock:

• You may earn an income tax deduction for the gift as well as avoid capital gain tax liability.
• Control issues for any transfer of closely-held stock might be a concern for you.  The Foundation will show sensitivity to such concerns in the manner in which it manages and disposes of the shares.
• Use of a “charitable remainder trust” may turn an illiquid asset into a stream of income that can last for a period of years or for a lifetime.
• It may be possible to diversify holdings over a period of time, create a regular income from dividends to the Foundation, and pass on assets estate-tax free to heirs through a “charitable lead trust”. 
• Tax-advantaged and control-sensitive business retirement and exit strategies may be available by using charitable giving arrangements.