Charitable Donations

If you choose to donate a portion of your company to charity, you will probably need a business valuation to determine the amount of your tax deduction. This differs from typical gift tax circumstances. As donations of closely held businesses have increased, many transactions have adopted unique characteristics regarding the donated interest.

Charitable donations of closely held business interests are governed by a gift agreement between the donor and the donee that outlines the interest being gifted, rights of the interest and restrictions placed on the interest. We can provide you and the legal advisors drafting the gift agreement with recommendations regarding the rights and restrictions for the interest, and we can also assess their impact on minority discounts. We have worked with both national public foundations and large community foundations in preparing gift agreements, as well as in providing the independent business valuations required by the IRS.