Business Interest Gifts
Did you know a planned Business Interest Gifts before a company sale could enable Gowns and Gardens House of Charities™ to call youth to freedom, fullness, and fruitfulness for generations to come? To discuss how to leave a legacy that supports your giving goals and organizations like Gowns and Gardens House of Charities, contact Kenisa at donate@gghouse.org or (424) 222-4742.
Business Interest Gifts Before a Company Sale​
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Turning Business Success Into Lasting Impact
For many business owners, the sale of a company represents the culmination of years of hard work and value creation. A Business Interest Gift can be a powerful planning strategy that allows owners to support charitable causes while potentially reducing the tax burden associated with a future sale.
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What Is a Business Interest Gift?
A Business Interest Gift occurs when a business owner contributes a portion of their ownership interest in a privately held company to a qualified charitable organization before a sale transaction takes place. By transferring ownership prior to a liquidity event, the charitable organization may participate in a portion of the sale proceeds, creating significant philanthropic impact.
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Why Consider This Strategy Before a Sale?
When structured properly and completed before a binding sale agreement is in place, a Business Interest Gift may offer several advantages:
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Potentially reduce capital gains taxes on the donated portion of the business.
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Generate a charitable income tax deduction, subject to applicable tax rules.
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Increase the amount available for charitable giving compared to making a cash gift after the sale.
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Support causes and organizations that align with your values.
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Create a meaningful philanthropic legacy while achieving financial planning objectives.
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How It Works
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A business owner identifies a qualified charitable organization.
A percentage of the company's ownership interest is transferred to the charity before the sale.
The business sale is completed.
The charity receives its proportional share of the sale proceeds.
The owner may benefit from tax efficiencies while making a significant charitable contribution.
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Key Planning Considerations
Successful implementation requires early planning and coordination among your professional advisors. Important factors include:
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Timing of the gift relative to the anticipated sale.
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Independent business valuation requirements.
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Corporate governance and ownership agreements.
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Due diligence by the receiving charitable organization.
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Compliance with federal and state tax regulations.
A Strategic Approach to Philanthropy
A Business Interest Gift allows business owners to transform a portion of a company's value into charitable impact before a sale occurs. By planning ahead, owners may be able to preserve more wealth for charitable purposes, support the communities and causes they care about, and create a legacy that extends far beyond the transaction itself.
Important: Business Interest Gifts are complex transactions and should be evaluated with qualified legal, tax, and financial advisors before implementation. Here at GG House we are here to support you in this diction which is why we have a trusted professionals we can direct to making your Business Interest Gift a reality. To discuss more on Business Interest Gifts or be connected to an expert who can assist you in setting this up please contact Gowns and Gardens House of Charities, Kenisa Nunley, by phone or email:
(424) 222-4742 (office)
The information contained in this site is provided for informational purposes only, and should not be construed as tax or legal advice on any subject matter.
