The number of U.S. businesses totals more than 27 million, but only a tiny fraction of those are publicly traded. Even so, your clients still have plenty of opportunities to give highly-appreciated marketable securities to fund their charitable endeavors. With the millions of closely-held businesses that aren’t publicly traded, though, many of your clients may have an untapped opportunity to give corporate interests, especially considering that private equity fundraising continues to soar. 

When discussing giving LLC and partnership interests with clients, keep in mind that complex tax and legal rules may apply. For example, the operating agreement or partnership agreement will indicate whether interests can be gifted to charity. Another consideration, in the case of an LLC, is whether the entity is taxed as a partnership. Finally, if the interests are given to a public charity, such as a fund at CFAAC, in general, the contribution is deductible up to the fair market value of the gifted property (minus reductions for certain components that may include liabilities, short-term capital gain, and ordinary income).

Contact CFAAC to explore ways your clients can fund their charitable giving strategies through gifts of closely-held business interests. We’d love to help! 410.280.1102