The ins and outs of the business donation process.
What is the Business Donation Process?
We will request that you provide initial information and basic documents about the business to help us begin assessing your proposed gift. We will prepare a gift proposal that will explain and illustrate your proposed gift and what the expected tax results and charitable proceeds will be. Both parties will sign a gift agreement that describes the terms of the gift.
We strongly encourage you to involve your professional advisors in the process; any information provided by iDonate should not be construed to be professional advice.
What are the Benefits of Donating Business Interests?
iDonate makes it easy to help your cause by donating business interest. We assist with the transfer paperwork and forward proceeds to your cause.
- A current-year tax deduction for the fair market value
- Reduced capital gains taxes paid on the sale
Please consult with your tax advisor for information on how these benefits apply to your situation.
What if I don't Know the Exact Information to Complete the Online Business Interest Illustration?
The online gift experience prepares a personalized illustration of the benefits from giving your business interest. If you don’t know your exact information, that’s okay. This is for illustration purposes only.
How Much Can I Deduct for Real Estate and Business Interest Donations?
iDonate strongly recommends that a tax advisor be consulted for your specific situation as tax laws change frequently and iDonate does not give tax or legal advice.
For real estate and business interest donations, you can usually deduct the fair market value (FMV) of the gift at the time of transfer up to 30% of your adjusted gross income.
The FMV is determined by a qualified appraisal which must be performed no earlier than 60 days before the gift. Appraisal guidelines can be found in IRS Publication 561.
Does iDonate Always Sell the Business Interest Gifts it Receives Immediately?
Business interest gifts are often liquidated as soon as possible after the transfer (“Give & Sell”). However, many business owners choose to maintain management oversight of their business while giving a non-voting interest (“Give & Hold”). In this way your business can create ongoing revenue for your cause.
What should I do if I don’t download the Letter of Authorization (LOA) before the link expires?
Contact email@example.com for a replacement letter of authorization.