Closely Held Stock

Charitable Giving Strategies for the Business Owner

If you hold stock in a closely held business, you may be able to use that stock to support our future in a powerful way.

Closely held stock* is most often used to support our work in the form of an outright gift. You can make a gift of closely held stock as long as the constituting documentation for the business permits additional owners and it is debt-free. The donation of closely held stock first requires you to value the interest in the business entity.

The checklist below has criteria you can use to see if you may benefit from donating closely held stock. Then, consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference.

  • You are a majority shareholder in a closely held corporation.
  • You would like to remove retained earnings from the corporation, without having them taxed again.
  • You would like to maintain a controlling position in the corporation’s outstanding stock.
  • You would like to avoid capital gains taxes on the shares you donate to National University.
  • You would like to receive a federal income tax deduction for the full appraised value of the gift.
  • You would like to support NU students.

 

Click on the links below to see the additional ways to fund your gift with closely held stock:

*A gift of closely held stock requires special handling, so you should always consult with your legal or tax advisor first.

Next Steps

There are many options for giving to National University, and we can help you decide which method works best for your particular needs:

  1. Contact the Development Office at (858) 642-8807 or development@nu.edu to talk about supporting NU.
  2. Seek the advice of your financial or legal advisor.
  3. If you include NU in your plans, please use our legal name and federal tax ID.

Legal Name: National University
Address: 11255 N. Torrey Pines Road, La Jolla, California 92037
Federal Tax ID Number: 23-7172306