Charitable
Giving
Charitable Giving
For business owners who are transitioning from success to significance, giving away your wealth can be even more rewarding than building it. Donors count on Adamy’s expertise to provide a Qualified Appraisal that will stand up to IRS scrutiny in support of their charitable gifts.
Services
- Qualified Appraisals for donors’ tax deduction reporting, including signing for Form 8283
- Collaboration with your advisors to help plan giving
- Advising charities on fair market value for transactions with donors
“We make a living by what we get, but we make a life by what we give.”
What it Is
Donating appreciated stock is often much more tax-efficient than donating cash. While both cases give the donor a tax deduction, donating stock allows the donor to avoid the capital gain on the sale of that stock. This strategy is frequently used by donors with public stocks.
Business owners can also use this strategy ahead of a sale of their privately held business, often with a donor advised fund run by a charity that specializes in complex gifts. In order to qualify for a tax deduction from the donation of private stock, the donor must include a Qualified Appraisal of the stock with their tax return. This is where Adamy can help.
Why it Matters
For business owners with significant charitable intentions, this strategy can allow them to put far more money to work for charity that would have otherwise gone to taxes. Doing it right requires working with tax advisors, a charity, and an appraiser who all have deep knowledge of the nuances and details of complex gifts. Treasury has specific requirements for Qualified Appraisals for deductions of private stock that exceed the requirements of estate planning and other tax appraisals.
If the taxpayer’s appraisal does not withstand IRS scrutiny, the results can be costly.
How We Do this Well
1. Adamy has performed dozens of Qualified Appraisals for charitable gifts, representing hundreds of millions of dollars of giving.
2. There are important nuances in many charitable giving situations, particularly when there is a potential sale of the business, that support lower discounts than would otherwise apply to private company valuations. Adamy is able to quantify these discounts with supportable and credible analysis.
3. Adamy has experience successfully defending our work with government bodies and other third parties.
The End Result
Charitable gifts of private stock, when done correctly, can allow a business owner to fund
many years of future charitable giving in the most tax-efficient way.
What Can Adamy Do For Your Business?
We are lifelong learners who serve clients by solving meaningful financial problems.
