Charitable Giving Strategies for the Business Owner

If you hold stock in a closely held business, you may be able to use that stock as a powerful way to support our future.

Closely held stock* is most often used to support our work in the form of an outright gift. You can make a gift of closely held stock as long as the constituting documentation for the business permits additional owners and it is debt-free. The donation of closely held stock first requires you to value the interest in the business entity.

Review this checklist to see if you may benefit from donating closely held stock. Then, consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference.

Evaluate Whether This Gift Is Right for You:

  • You are a majority shareholder in a closely held corporation.
  • You would like to remove retained earnings from the corporation, without having them taxed again.
  • You would like to maintain a controlling position in the corporation's outstanding stock.
  • You would like to avoid capital gains taxes on the shares you donate to Cal Poly.
  • You would like to receive a federal income tax deduction for the full appraised value of the gift.
  • You would like to support our mission.

*A gift of closely held stock requires special handling, so you should always consult with your legal or tax advisor first.

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Next Steps

  1. Contact Cal Poly's Office of Gift Planning at 805-756-7125 or plannedgiving@calpoly.edu for additional information on giving a gift of closely held stock.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Cal Poly in your plans, please use our legal name and federal tax ID.

Legal name: California Polytechnic State University Foundation
Address: Heron Hall, Building 117, San Luis Obispo, CA 93407-0444
Federal tax ID number: 20-4927897

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