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All In The Family: How To Evaluate And Accept Gifts Of Closely Held Business Interests

February 21, 2012

Presented by: GPM's Charitable Gift Planning Team

A Breakfast Briefing presented by:
Gray Plant  Mooty’s Charitable Gift Planning Team

Speakers: Robert Harding and Sheryl Morrison 

Gifts of closely held business interests can be very attractive to donors and charities if handled properly. There are, however, a number of questions about these contributions that do not come up with gifts of cash and publicly traded securities. How will the donor’s income tax deduction be computed, and what must the “qualified appraisal” say? Will the gift generate “bargain sale” gain for the donor? Is there a risk of a “prearranged sale” that would cause the donor to be taxed on the gain if and when the donee institution disposes of the donated interest? Can a donor fund a CRT or CLT with a closely held business interest? To confirm that the proposed gift will generate a substantial benefit, not an unexpected liability, the institution and its counsel should review a number of documents related to the business and the donated interest to determine whether the charity will have unrelated business taxable income and/or nontax liabilities.

7:30 a.m. – 9:30 a.m.

Gray Plant Mooty, 500 IDS Center–5th Floor, 80 South Eighth Street, Minneapolis, MN 55402

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