Charitable Giving

Making donations of appreciated assets is often more tax-efficient than donating cash. While either scenario may give the donor a tax deduction, donating appreciated assets often allows the donor to avoid the capital gain on the sale of such assets if certain requirements are met. Although the strategy is often employed by donors with publicly traded stocks, business owners can also take advantage of this strategy by making a donation ahead of the sale of their privately held business and business interests.

This strategy often includes the use of a donor-advised fund run by a charitable organization that specializes in complex gifts. For the donor to qualify for a tax deduction for income tax purposes, the donor must include a Qualified Appraisal of the appreciated securities with their tax return.

Many business owners have significant charitable intentions and donating appreciated assets can allow them to put more money to work for charity than would have otherwise gone to taxes. Donating appreciated securities requires working with tax advisors, a charity, and a qualified appraiser who all have deep expertise. The US Treasury has specific requirements for Qualified Appraisals for deductions related to private stock.If the appraisal does not withstand IRS scrutiny, the implications can be costly.

Our experienced team has decades of experience performing Qualified Appraisals for charitable donation purposes.

Nuance often exist in charitable donation situations that may allow for smaller discounts than would otherwise apply in private company valuations. We will leverage our decades of experience inexperience to in calculating discounts that are supportable and defensible.

All of our charitable giving valuation reports meet the requirements for a “Qualified Appraisal” and are performed by a “Qualified Appraiser” as defined by the U.S. Internal Revenue Service.