Closely Held Business Stock

Subsequent to the gift, the corporation could purchase the stock from Catholic Charities for cash. This not only enables the donor to retain complete control over the company but also makes cash available to Catholic Charities for its current needs. As long as Catholic Charities is not obligated to sell the stock to the corporation, the transaction should produce no adverse tax results.

How It Works

1. You make a gift of your closely held stock to Catholic Charities and get a qualified appraisal to determine its value
2. You receive a charitable income-tax deduction for the full fair-market value of the stock
3. Catholic Charities may keep the stock or offer to sell it back to your company

Benefits

• You receive an income-tax deduction for the fair-market value of stock
• You pay no capital-gain tax on any appreciation
• Your company may repurchase the stock, thereby keeping your ownership interest intact
• Catholic Charities receives a significant gift