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Privately Held Stock

A father and son business owners giving thumbs up

For most business owners, transitioning a company to a new owner is an exciting, yet overwhelming, time. This major personal and financial transition may raise questions about tax implications and how you can use the sale of your business to make a significant gift to the causes you care about.

You may want to incorporate charitable giving into your business succession plan, but are concerned it could add complexity and jeopardize the plan’s success.

Charitable giving doesn’t need to make your business transition plan more complex.

At the Saint Paul & Minnesota Foundation, we make it easier for Minnesota business owners to incorporate giving into their transition plans.

Here’s How a Donor Advised Fund Works

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  1. Talk with a Foundation Gift Planner about your charitable goals.
  2. Our experienced staff will work with you and your advisors to determine the simplest way to incorporate giving into your business transition plan.
  3. Establish your own donor advised fund (DAF) that can easily accept any assets resulting from the transition of a business. Non-cash assets can be liquidated tax-free.
  4. The resulting cash proceeds are available to grant to the nonprofits of your choice.

Eliminate the complexity of incorporating giving into your business transition plan and give to your fullest potential. Call 651.224.5463 or email us at philanthropy@spmcf.org.

How Amelia and Harvey Used Privately Held Stock to Establish Their Fund

Harvey and Amelia holding a basket in their nursery business

Amelia and Harvey have been married for over 35 years and built a successful wholesale nursery business. Recently, they decided to retire and began working with a business transition consultant to pursue business succession planning.

They were surprised to learn how much their business could sell for — and the potential tax consequences. The consultant told Amelia and Harvey that by donating some of their business stock to a donor advised fund, they could likely take a charitable income tax deduction. The charitable deduction could help to offset the tax on the business stock they sold themselves.

A donor advised fund could sell their donated business stock free of capital gains taxes, leaving 100% of the proceeds available to grant to their favorite nonprofits. After some research, they chose to establish their fund with the Saint Paul & Minnesota Foundation.

They are now completely retired with a nice savings from the business sale as well as a donor advised fund that allows them to continue supporting their favorite nonprofits for the rest of their lives.

Ready to Get Started?

Start a conversation with a Gift Planner today. Call 651.224.5463 or email the team at philanthropy@spmcf.org.

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