Gifts of Business Interests

Gifts of business interests—such as stock in a closely held corporation, S-corporation stock, shares in a professional corporation, or partnership interests—can make a charitable gift that benefits both you and Tufts.

When you make a gift of business interests, you will receive a charitable deduction and may be able to use the assets to fund certain types of life-income gifts, such as a charitable remainder unitrust.

Alternately, you may use your business interests to create a charitable lead trust that provides the university with income now and returns any remainder to your heirs.

How it works

	You give shares of closely held stock to Tufts University.
	Most commonly, Tufts offers the stock back to your company for redemption or re-purchase and uses the proceeds for its programs.

Benefits of gifts of business interests

• You receive gift credit and an immediate income tax deduction for the appraised value of your shares.
• You pay no capital gains tax on any appreciation of the shares.
• Under certain conditions, you may be able to use closely held shares to fund a life-income arrangement, such as a flip unitrust.

Important factors to consider about gifts of business interests

Because closely held stock is not publicly traded, a gift of such an asset requires an independent appraisal to establish its fair market value. Your charitable deduction will be based on the appraised market value of the shares, less any liabilities you may have accrued.

A gift of a business interest is for you if...

• You are an entrepreneur, member of a family business, or participant in a professional corporation or partnership.
• You hold an ownership interest in a viable enterprise, and are able to transfer your interest to a third party such as the university.
• Your interest is not encumbered by debt, and Tufts will not be called on to make future contributions to or for the enterprise.
• You want to save both income and capital gains tax.
• You want to transfer assets to your heirs with minimal tax ramifications.

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If you are considering a gift of stock in a business interest, first consult with your attorney and accountant. We can work with you and your advisers to review the benefits of such a gift. The treasurer’s office must review and approve any such transfer.