Closely Held Stock
If you own closely held stock in your business, you may choose to contribute it to Grand Rapids Community Foundation. Closely held stock is generally not sold to the general public. If you must liquidate it, giving it to a charitable organization will offer you and your company a number of advantages. First, you’ll receive a charitable deduction for the appraised fair market value. You’ll also avoid tax on the capital gain. And, at a later date, the company may redeem the stock, or the company Employee Stock Ownership Plan or another shareholder may buy the stock at its fair market value.
Key benefits to remember:
- Take a charitable deduction for the appraised market value, not the cost basis (original investment)
- Avoid capital gains tax
- Buy back or redeem the stock
- Reduce the size of your estate
© Grand Rapids Community Foundation - 161 Ottawa Avenue NW 209 C - Grand Rapids, Michigan 49503 - 616.454.1751
