Gifts of Business Interests
As a business owner, you have the opportunity not only to build your business and accumulate wealth for yourself and your family, but also to accomplish your philanthropic goals through charitable planning. A gift of your corporate stock or assets can provide you with tax and income benefits and impact your favorite charities.
Gifts of Stock
Business Stock or Asset
Foundation
Benefits of gifts of business interests
- Receive a charitable income tax deduction.
- Avoid tax on the sale of your business stock or assets.
- Receive lifetime payments if your business stock or assets are used to fund a planned gift.
How gifts of closely held stock work
- Give a percentage of your voting or non-voting shares in your business to us outright and receive an income tax deduction. The Catholic Foundation will hold your shares for a future sale or redemption and can use any dividends paid to benefit your favorite charity.
- Give a percentage of your voting or non-voting shares in your business for a donor advised fund (DAF) and receive a charitable deduction. The Catholic Foundation will hold your shares for a future sale or redemption and can use any dividends paid to benefit your favorite charity. On an annual basis, you can advise us on how to make grants from the fund to your favorite charitable causes.
- If your corporation is an S corporation, there are special rules that apply to gifts of corporate stock. Please contact us to discuss the most tax-efficient way to structure your stock gift.
How gifts of business assets work
- If your business makes a gift of a non-inventory asset, it will receive a charitable income tax deduction based on the appraised fair market value of the asset.
- The income tax deduction for a gift from a business is limited to 10% of the corporation's taxable income. Your business may carry forward any unused deduction up to five years.
- If your business is an S corporation, the charitable deduction will flow through to the shareholders in proportion to their ownership interest. Check with us on the most tax-efficient way to make a gift of corporate assets from your business.
Contact us
Please contact us with questions about business gifts.