There is a growing trend of contributing privately held business interests to public charities. Your clients can optimize their giving by leveraging the value of these non-publicly traded assets, which provides immediate and ongoing support to multiple charities on their own timetable. By contributing such assets to charity, clients:
Start the conversation as early as possible when considering charitable donations of business interests. For business owners nearing a transition point, timing is critical because of all the considerations involved. People often wait too late in the process prior to selling their business to realize their full potential benefits.
Let clients know that some of the charities they want to support do not have the resources to accept or liquidate these types of closely held business interests, so a donor-advised fund may be a better solution.
Review with your clients how contributions are processed to make the highest possible percentage of the funds from the sale available for them to make grant recommendations.
Help your clients understand what resources are available. At Fidelity Charitable, we have more than 25 years of experience navigating the specific requirements and avoiding potential pitfalls related to the contribution of these assets, including back-office support to help eliminate the administrative burden.