Gifts Today
Business Interests
If you are a business owner, donating an ownership interest of a privately held company before a sale or transfer may become a significant charitable strategy. In the right circumstances, a gift of closely held business interests can lessen or eliminate capital gains exposure while creating meaningful support for ministry. Timing matters, which is why these gifts should begin with advisors and an early conversation with Denison Ministries.
Who is this for?
This option is typically for owners of the business who want to explore giving privately held ownership interests before a sale, transfer, or succession event.
Eligibility
Closely held business interests are reviewed case by case. Valuation, legal structure, and timing all matter.
This might be right for you if:
- You have an ownership interest in a privately held company and anticipate a sale or transition event.
- You want to explore whether giving that ownership interest in whole or in part before a transaction may be more efficient than giving cash later.
- You are willing to involve legal, tax, and valuation professionals early in the process.
Why this gift?
How it may benefit you
When structured appropriately and timed well, a gift of business interests may:
lessen or eliminate capital gains exposure on the gifted portion,
create a charitable deduction based on appraised fair market value, and
support a substantial ministry gift from an asset you already hold.
These gifts are complex, so advisors should be involved from the beginning.
How it helps the mission
A well-structured gift of business ownership interests can become major support for Denison Ministries while honoring the ministry’s gift acceptance guidelines and stewardship responsibilities.
See the difference
| Sell & Give Cash | Donate Asset Directly | |
|---|---|---|
| Asset Value | $250,000 | $250,000 |
| Original Cost (Basis) | $100,000 | $100,000 |
| Capital Gain | $150,000 | $150,000 |
| Capital Gains Tax (20%) | $30,000 | $0 |
| Charitable Deduction | $250,000 | $250,000 |
| Net Tax Benefit (32% Bracket) | $50,000 | $110,000 |
| Total Benefit to Charity | $250,000 | $250,000 |
| Effective Cost to Donor | $200,000 | $140,000 |
How it works
-
1
Start the conversation early
Timing is critical. Contact Denison Ministries before any sale or transaction is finalized.
-
2
Engage legal, tax, and valuation advisors
These gifts require professional guidance around structure, appraisal, and transaction timing.
-
3
Allow Denison to evaluate the interest
The ministry’s board reviews closely held ownership interests under our Gift Acceptance Guidelines and may request additional information.
-
4
Complete the transfer before the transaction
If the gift is approved, the transfer generally needs to happen before the sale or liquidity event.
Example
Susan owns a 5% ownership interest in her business valued at $250,000. By donating that portion to Denison Ministries before the sale, she may lessen or eliminate capital gains tax on the gifted interest, create a charitable deduction based on appraised fair market value, and direct significant support toward ministry if the transaction closes as planned.
Frequently asked questions
Ready to take the next step?
Contact us first before initiating any transfer or transaction.
These gifts are most effective when planned early. If a transaction may be on the horizon, let’s talk before any steps are finalized.
Email: donors@denisonministries.org
EIN: 26-3191442
Denison Ministries does not provide legal, tax, or financial advice. Please consult your advisors. Gift acceptance is subject to Denison Ministries' Gift Acceptance Guidelines.