CLOSELY HELD STOCKCLOSELY HELD STOCK

Owners of closely held stock can make a gift of these assets to the Foundation: Subchapter C Corporation (C Corp), Subchapter S Corporation (S Corp).
  • Your ability to give closely held stock is dependent on limitations of stock ownership.
  • The value for charitable deduction is determined by a qualified appraisal.
  • C-Corp stock may be used as an outright gift or funding asset for a trust.
  • S-Corp stock may be used as an outright gift only.

One Donor's Story

The Donor

A retiring shareholder in a closely held family corporation had highly appreciated shares, and wished to avoid paying capital gains tax.

His Gift

  • The shares were transferred to a charitable remainder unitrust after an appraisal to determine the charitable deduction.
  • The corporation redeemed the stock and cash proceeds were invested through the unitrust, providing the donor with a lifetime income.
The trust reminder will establish a family fund advised by two succeeding generations. Over time, the donor has given additional shares to family members.