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 may provide you with tax and income benefits and help create a brighter future.
Gifts of Stock
Business Stock or Asset
Benefits of gifts of business interests
- Qualify for 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 qualify for an income tax deduction. We will hold your shares for a future sale or redemption and can use any dividends paid for our charitable purpose.
- Give a percentage of your voting or non-voting shares in your business to a donor advised fund (DAF) and qualify for a charitable deduction. The DAF will hold your shares for a future sale or redemption and can use any dividends paid for charitable grants. You can advise CJP 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 a professional advisor to discuss the most tax-efficient way to structure your stock gift.
- All gifts of business interests are subject to approval by CJP's Gift Review Group.
How gifts of business assets work
- If your business makes a gift of a non-inventory asset, it may qualify for 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 for 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 a professional advisor on the most tax-efficient way to make a gift of corporate assets from your business.
Contact us
If you have any questions about making a gift of a business interest or your business assets, please contact us. We would be happy to assist you.