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Gifts of Closely Held Stock

When it is time to transfer business ownership – whether to create income for retirement or to pass on an inheritance, business owners have special opportunities to give something back to their hometown.

Gifts of Closely Held Stock
Closely Held Stock
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Benefits of gifts of closely held stock

This is an opportunity for you to help your hometown with a gift of your corporation's stock. Transferring shares of your corporation's stock to the Nebraska Community Foundation for the benefit of an affiliated fund can provide the following benefits:

  • The satisfaction of making a gift today that can be invested in your hometown
  • An immediate personal charitable income tax deduction
  • Bypasses capital gains taxes on the gift of stock
  • Avoids declaration and double-taxation of dividends
  • Allows the corporation to buy back the stock
  • Reduces estate taxes and settlement costs

How to make a gift of closely held stock

A business owner who owns the majority of the stock in a family business or corporation transfers shares of his or her stock to Nebraska Community Foundation. Nebraska Community Foundation sells the donated stock for fair market value. The gift of stock leaves the business owner in full control of the corporation and without any personal costs. As a result of this gift, the business owner becomes entitled to a charitable deduction for the full fair market value of the stock on his or her personal tax return. Plus, he or she avoids the capital gains tax on the appreciation of the corporation's stock.