Share the Success You've Enjoyed

Kathy, a successful entrepreneur, was thinking about selling her garden center business to pursue other ventures. Her plan was to donate a portion of the proceeds to her alma mater – which she credited with giving her a strong start all those years ago. A couple of firms had shown interest in buying Kathy’s C-Corp, but the deal wasn’t complete and terms were still being negotiated.

Kathy knew that because she’d built her business from basically nothing over the course of her career, she’d be facing a large capital gains tax when the sale was complete.

Her financial advisor suggested that instead of selling the business and donating a portion of the proceeds, she should contribute a 20% minority stake in the business directly to Fidelity Charitable® – helping to lessen her capital gains exposure and claim a higher tax deduction. This strategy would also allow Kathy to recommend a larger grant from her donor-advised fund than she could have made had she only donated the after-tax proceeds from the sale of her business.

Reach Rewarding Results

Kathy took the advice. As a result, she was able to reduce her tax obligation by $132,899 – and make a larger grant recommendation to her alma mater.

Maximize Your
Charitable Giving

Kathy reduced her
tax obligation by:
Additional amount dedicated to charity: 95,200

Potential benefits of giving an interest in a company directly to Fidelity Charitable®

  • Provide more money to charities
  • Minimize capital gains tax exposure
  • Take a tax deduction

Supporting Charities is Flexible and Easy

In addition to minimizing her capital gains exposure and claiming a significant tax deduction, Kathy was able to make a very generous grant recommendation to her school. But she also noticed another perk: the power of having a ready reserve to draw from for her charitable giving. When a natural disaster struck in the state where she lives, Kathy was inspired to help – as quickly as possible. By using her Giving Account, she was able to do just that.

Sound Like the Right Opportunity?

If a donation scenario like Kathy’s sounds like it could fit your personal situation, know that Fidelity Charitable has the experience and technical expertise to help. Fidelity Charitable can:

  • Simplify the process of contributing highly appreciated non-publicly traded assets

  • Help realize the most favorable tax consequences with the greatest charitable impact

  • Guide the entire asset transfer process

  • Work with you and your advisors to prepare and plan for contributions of these assets in advance of a liquidity event

To learn more, please contact your financial advisor or
Fidelity Charitable at 800-952-4438 or via our Contact Us form

Log into your Giving Account