Business Owner Charitable Giving Strategies

As a business owner, you’ve dedicated yourself to building success. Now, you may be looking to extend that success into making a lasting impact on your community.

But did you know that strategic charitable giving is also a powerful tool for strategic business wealth management?

Many business owners are unaware of the huge tax advantages associated with donating appreciated assets rather than writing a check.

In our Charting Opportunities series, we sat down with Brandon Davis of the National Christian Foundation (NCF) to break down how to transform business equity into a legacy of generosity.

The Power of Donating Appreciated Assets

Instead of making charitable contributions solely from your cash flow, the smarter play is to leverage your appreciated assets. For business owners, this often includes stock, real estate, or even business interests.

Imagine donating shares of your company, which have appreciated over time, directly to a charity before a sale. This not only allows you to give more but also potentially eliminates the capital gains taxes you would incur if you sold the assets first. This is a crucial element in preparing for a liquidity event.

Tax Benefits and Financial Planning

Understanding the tax benefits of donating business interests is essential for any owner considering an exit.

By donating appreciated assets, you may be able to claim a charitable deduction for the fair market value of the asset while bypassing the tax hit.

Integrating this strategy with business succession planning allows you to align your philanthropic goals with your long-term exit strategy.

This approach is extremely relevant if you’re considering selling your business. Our discussion with NCF provides insights into how you can integrate these strategies into your overall financial plan.

Not Just Taxes: Building Your Business Legacy

While the tax advantages are substantial, the benefits of strategic giving extend far beyond the spreadsheet.

• Reputation: Engaging in philanthropy strengthens your connection with the community.
• Unity: Family business charitable giving can foster a shared sense of purpose.
• Talent: Demonstrating social responsibility can help attract top talent and strategic partners.

Expert Insights

NCF The National Christian Foundation is a leader in facilitating complex charitable gifts. With their extensive experience in handling marketable securities and non-cash assets, Brandon Davis provided a masterclass on navigating the complexities of charitable giving strategies.

Don’t miss this opportunity to learn how to structure your giving before the IRS comes calling.