Using Business Stock for Giving
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 Bates.
Closely held stock* is most often used to support the college 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 it 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.
- 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 Bates.
- You would like to receive a federal income tax deduction for the full appraised value of the gift.
- You would like to contribute to Bates.
Click on the links below to see additional ways to fund your gift with closely held stock:
- A gift in your will or living trust.
- A charitable gift annuity.
- A charitable remainder trust.
- A charitable lead trust.
* A gift of closely held stock requires special handling, so you should always consult with your legal or tax advisor first.
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- Contact the Office of Gift Planning at (207) 786-6246 or Toll-free: (800) 762-3145 or email@example.com for additional information on giving a gift of closely held stock.
- Seek the advice of your financial or legal advisor.
- If you include Bates in your plans, please use our legal name and federal tax ID.
Legal Name: President and Trustees of Bates College
Address: 2 Andrews Road, Lewiston, ME 04240
Federal Tax ID Number: #01-0211781
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. 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. 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. 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. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.