Closely Held Stock

If you own a sizable block of stock in a closely held corporation, you may want to consider the benefits to you and Roberts Wesleyan resulting from your gifting of the stock to the College.

Example: You decide to donate some shares to Roberts Wesleyan, 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. Roberts would unlikely fail to do this. It's a favorable option for both of us.

Benefits

• Income tax deduction for the charitable contribution

• No capital gains tax on the appreciation in value

• No second tax on accumulated earnings by averting a dividend distribution

• You maintain control of the corporation