Equity That Drives Results

You have worked hard to build value in your business. Likewise, you want the philanthropy it creates to drive results in lives and communities. How can you best convert your business equity into effective charitable giving?

The Community Foundation lets you give with confidence. Our resources and expertise will enable your equity to make an impact in the issues and organizations most important to you. You have invested a lot into your business, let its returns maximize your own philanthropy.

Here are four scenarios for creating a charitable fund through equity:

Contributing Pre-IPO or Pre-Sale Stock: Closely held stock can be exposed to significant capital gains tax when sold. Making a pre-IPO or pre-sale gift of stock allows you to take a tax deduction at fair-market value and avoid capital gains tax. Depending on your situation, you can create a fund either for the new public company or yourself.

Gifting a Portion of Stock: Since dividends distributed from retained earnings are taxed, it may be to your advantage to gift shares to the Community Foundation. You receive a maximum tax deduction, and avoid capital gains tax. Proceeds from the stock’s redemption are then placed in your fund for grant recommendations.

Life Income Solutions: Company stock can be gifted to a charitable remainder trust with the Community Foundation. Proceeds from the redemption of stock then fund a determined life income. You receive a calculated tax deduction, and avoid capital gains. In the future, the remainder interest creates a charitable fund for your family or community.

Family Business Continuity: For some donors continuing the legacy of their business in the community is very important. In certain cases the Community Foundation can accept all or portions of an operating business. This allows the business to continue operating, with the profits available for charitable giving through its fund.

Contact Hans Dekker at 973.267.5533 or by email with any questions or to establish your fund.