Gifts of Business Interest
Many Christian business owners have worked diligently to build a business and they also want to give generously. However, they may feel hindered by the increasing taxation and limited cash flow. By donating a non-voting interest in your business, you can receive a substantial deduction, and still maintain control and oversight of the business through retention of the voting interest.
Benefits and Options for making a gift of a business interest:
- Unlock more current dollars for charity, without waiting for a liquidation event
- Make the most of available tax deductions with the gift of a business interest
- Reduce current income taxes and increase cash flow
- Bypass or minimize capital gains taxes on the gifted portion of the business – if and when the business is sold
- Gift of a business interest can reduce your estate value and potentially estate taxes
- Set an example for employees and family by utilizing your business and God-given talent as a business owner for Kingdom purposes
How to make a gift of a business interest:
Making a gift of a business interest is a significant decision that should be discussed with your professional advisors.
If you have questions about a gift of a business interest, please contact us. We would be happy to assist you and answer your questions.
Business Succession Planning and Charity - When you are ready to sell your business, before you sign a binding agreement, consider a charitable gift to reduce or completely avoid capital gains on the sale. If you give enough of an interest in your business to us or a donor advised fund, you can use the resulting charitable income tax deduction to offset part or all of the capital gains on the interest you retain and sell.
Tax Planning Strategies for Business Owners - If you would like to sell your business and receive income, ask us how you can transfer part or all of your business stock or assets to fund a charitable remainder trust. The trust will sell your business interest tax-free and pay you (and your spouse) income for life. You will receive a charitable income tax deduction to further offset any capital gains.