Donations
- Cash
- Stocks
- Closely Held Stock
- Life Insurance
- Mutual Funds
- Qualified Retirement Plan Assets
- Planned Giving
Closely Held Stock
Closely held stocks are shares in a privately owned business. The shares are usually owned by family members, top management and the corporation itself. The stock can be contributed outright to the Dominican Sisters, and the donor is entitled to a deduction for the appraised fair market value. The donor avoids the potential capital gains tax on any appreciation in the value of the stock.
Subsequent to the gift, the congregation may sell the stock to the corporation or to other shareholders for cash. There can be no prior agreement between the charity and a potential buyer before the gift is made.
The donor is entitled to a deduction for the full value of the stock up to 30 percent of his or her adjusted gross income. A “qualified appraisal” is required if the claim exceeds $10,000.