Charitable Giving Strategies for Business Owners

Your Business. Your Legacy.

Pay it forward. The phrase is often used by people with philanthropic goals. Successful entrepreneurs who own interests in closely held corporations, S-corporations or shares in a professional corporation have a unique opportunity to “pay it forward” they may not have thought about.

As you engage in business succession planning, you can meet your philanthropic goals with a charitable gift of an interest in your business. This strategy can facilitate the transfer of a family-owned business with lower tax exposure, contribute to your retirement income and create a permanent charitable legacy.

How It Works

Privately held business interests can be given as an outright gift. You may be able to make a gift of privately held stock or business interests as long as the constituting documentation for the business permits additional owners. (The IRS, however, says there can be no prearranged contract or agreement for us to sell the stock or for the corporation to buy it.) You will need to value the interest in the business entity with a qualified appraisal.

A gift of your privately held stock or business interests takes careful planning. Make sure to consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference.

This Gift Is Right For You If:

• You would like to avoid capital gains taxes on the shares or interests you give to San Diego State University.
• You would like to receive a federal income tax deduction for the full appraised value of the gift.
• You would like to make an impact.

Your Next Steps

Gifts of business interests can be complex. At SDSU, we are committed to ensuring the proposed gifts are in the best interest of both you and San Diego State University. We encourage you to work with your legal and financial advisors when considering a gift of business interest.

Click on the links below to see the additional ways to fund your gift:

• A gift in your will or living trust.
• A charitable gift annuity.
• A charitable remainder trust.
• A charitable lead trust.