To encourage gifting the charitable organizations, the Taxpayer Relief Act of 1997 preserved a donor's ability to give highly appreciated stocks and other assets, and deduct the full fair market value, not the lower value paid originally. This is a way to generate maximum impact from charitable giving at a minimum cost.

Gifts of Closely-Held Stock

In many cases, gifts of closely-held stocks offer donors the opportunity to turn a non-income-producing asset into an income-producing one through the establishment of a charitable life income vehicle. These types of gifts may also be an advantageous way for these assets to flow back to the company or to another purchaser. Audits and appraisals can be used to value the stock of closely-held companies. However, closely-held stock valued at more than $10,000 must be valued by a professional appraiser using valuation techniques approved by the IRS.

For those who have assets tied up in closely-held stock, this type of gift may offer new ways to create income, avoid capital gains tax, receive an income tax deduction, and transfer the assets out of an estate.

To better facilitate a transfer of stock, please provide the following information to your
Investment manager/broker.

For advice or assistance with your estate plan, the services of a professional advisor should be obtained.