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Gifts of Business Interests
How It Works
- You give shares of closely-held stock to the ACLU Foundation
- The ACLU Foundation may hold the shares and collect the dividends, or it may offer the stock back to your company for redemption or re-purchase. The ACLU Foundation will apply dividends or the proceeds to the purposes you wish to support.
Benefits
- You receive gift credit and an immediate income tax deduction for the appraised value of your shares, even if their original value was close to zero.
- You pay no capital gains tax on any appreciation that has taken place in the shares.
- Under certain conditions, you may be able to use closely-held shares to fund a life-income arrangement.
- You can make a significant gift that benefits both you and the ACLU Foundation during your lifetime without using your cash reserves to do so.
 Please contact us so that we can assist you through every step of the process.
 Questions and Answers
 How do I arrange for a gift of my stock?
It is important that you contact us so that we can assist you with transfer instructions. If you own securities in a brokerage account, we can help you set up an electronic transfer of the shares to our brokerage account. If you possess actual stock certificates, we can tell you how to sign the certificates over to us and fill out a stock power form.
What are the tax advantages of a gift of stock?
Assuming you are giving long-term (owned for 12 months or more) appreciated securities, you will receive a charitable income tax deduction equal to the fair market value of the shares. For common stock this is typically the mean value on the date that we take control of the shares you give. You will pay no capital gains tax. Gifts of stocks are deductible up to 30% of your adjusted gross income the year you make your gift. Any excess amount can be rolled over into the next tax year, for up to 5 additional tax years if you need it.
Will you sell the shares I give you?
It is generally our policy to liquidate any donated stock shares very soon after receiving them, so that we can use the cash proceeds for the purpose you designate.
Can I give closely held stock that I own?
In many cases yes, and considerable tax benefits can result. However, giving closely held stock is more complicated than giving common stock. We stand ready to assist you with your gift intention. Our prerequisite to giving closely held stock is that the business or the shares have had a recent qualified appraisal. Please contact us so that we can walk you through the process.
Questions? We're here to help. Email us or call toll-free 877-867-1025.
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