Gifts of business interests, like stock in a closely held corporation or shares in an investment partnership, can be beneficial for both you and The Nature Conservancy. Gifts are usually made outright, but in some cases may be used to fund a life-income arrangement such as a charitable remainder unitrust.

You will receive a charitable income tax deduction for your gift, based on the full fair market of the shares, minus any debt or other liabilities that may be related to them. There is no capital gains liability on the transfer to us. The Nature Conservancy will receive any income paid on the shares, and may also sell them to a third party.

Planning points

• Since shares in a closely held business or an investment partnership don't trade publicly, you will need to secure an independent appraisal of the fair market value of the shares you donate.
• Before proceeding, make sure that there are no restrictions on the transferability of the shares, and that you have not used the shares to secure a loan from the corporation or partnership - if the loan is still outstanding, the IRS will consider your gift as relieving you of the debt and will impute taxable income to you.
• Shares of an S-corporation are subject to additional IRS regulations.
• Because the offer of a business interest involves us in issues of marketability, liability, and involvement in business operations, The Nature Conservancy must first review and approve any such transfer. Please note this may take some time.