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If you own a sizable block of stock in a closely held corporation, you may want
to consider the benefits to you and Northeastern resulting from your gifting of
the stock to the Seminary.
Example: You decide to donate some shares to Northeastern, few enough that you
retain 50% ownership. Then we present the stock to your corporation for
redemption and your corporation uses retained earnings for the purchase.
We benefit because we receive much-needed funds. You and your corporation
also benefit. Please keep in mind, the IRS has ruled that you cannot legally bind a charitable
organization to go through with the redemption. Yet a charitable organization may independently offer the donated stock
for redemption. This is Northeastern Seminary's likely course of action. It's a favorable option for both of us.
Benefits
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Income tax deduction for the charitable contribution
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No capital gains tax on the appreciation in value
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No second tax on accumulated earnings by averting a dividend distribution
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You maintain control of the corporation
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