Anti-Defamation League

Facebook

Twitter



ADL en español

Google+

LinkedIn

Share28

Pinterest

Follow ADL's boards

Click to pin: 

ADL on YouTube

Subscribe to ADL on YouTube.

Video on ADLTV

Watch at adl.org/ADLTV.

Read our Blog

Keep up-to-date with the Access ADL Blog and get new post by e-mail.

Tune in

Listen and subscribe to the ADL Podcasts on iTunes, or visit the website: podcast.adl.org.

Stay connected

Subscribe to ADL Newsletters.

Gifts of Business Interests: The Details

When the time comes to transfer or sell your business, there are tax and practical reasons for including a charity in the plan.

Is this gift right for you?

A gift of business interests may be for you if…

  • You are an entrepreneur, member of a family business, or participant in a professional corporation.
  • You hold an ownership interest in a viable enterprise, and are able to transfer your interest to third parties like Anti-Defamation League.
  • Your interest will continue to generate revenues that can flow to us, or it is likely to be redeemed by the enterprise in the near future.
  • Your interest is not encumbered by debt, and we will not be called on to make future contributions to or for the enterprise.
  • You want to save both income tax and capital gains tax.
  • Your interest is marketable.

Gifts of business interests, such as stock in a closely held corporation, S-corporation stock, and shares in a professional corporation, can benefit you and Anti-Defamation League.

You will receive a charitable income tax deduction for the full fair market value of the shares, with no capital gains liability for the transfer to us. In some cases you may be able to use the shares to fund a gift plan that pays lifetime payments to you, like a charitable remainder unitrust, or that lowers the gift/estate-tax cost of passing a family business to the next generation (learn more about charitable lead trusts).

Anti-Defamation League will receive dividends from the shares you donate and will apply the dividends to the purposes you designate. Alternately, we will offer the shares to the corporation for redemption or repurchase. (Note that while we will be pleased to consider a redemption of the shares, there can be no prior written agreement between you and the corporation or a third party to offer us such a redemption – if there is, the IRS will impose capital gains tax on your gift transfer.)

Planning points

  • Since shares in a closely held business or an investment partnership don't trade publicly, you will need to secure an independent appraisal of the fair market value of the shares you donate.
  • Before proceeding, make sure that there are no restrictions on the transferability of the shares, and that you have not used the shares to secure a loan from the corporation or partnership.
  • Shares of an S-corporation are subject to additional IRS regulations.
  • Because the offer of a business interest involves us in issues of marketability, liability, and involvement in business operations, Anti-Defamation League must first review and approve any such transfer.

Please contact us so that we can assist you through every step of the process.

Back



Compare Gift Plans Goals & Benefits Glossary Request Information

The professionals at our Department of National Planned Giving, Legacy and Endowments will be happy to discuss your interests, concerns and financial options, and work personally with you and/or your legal and financial advisors to create a plan that meets your needs and supports the Anti-Defamation League Foundation.

For more information, please contact:

Director of National Planned Giving, Legacy and Endowments
Anti-Defamation League Foundation (ADLF)
605 Third Avenue
New York, NY 10158
plannedgiving@adl.org
1-888-235-9710

This information is provided for educational purposes. The Anti-Defamation League Foundation and ADL are not financial, legal or tax advisors. Please contact your advisors regarding your financial, legal or tax needs.