Using Business Stock for Donations

Charitable Giving Strategies for the Business Owner

Foundations of MultiCareIf you hold stock in a closely held business, you may be able to use that stock as a powerful way to support high-quality patient care in our community for generations to come.

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. With an outright gift, you enable us to meet our most urgent needs in our community. You will have the opportunity to see your generosity in action and will also receive an immediate federal income tax charitable deduction, when you itemize.

Review this checklist 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 Good Samaritan Foundation, Mary Bridge Children's Foundation, MultiCare Health Foundation or South King Health Foundation.
  • You would like to receive a federal income tax deduction for the full appraised value of the gift.
  • You would like to support excellent patient care in our community.

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.

Make Your Annual Gift Last Forever

Each year we rely on your gift, along with many others, to help us meet our goals and make a difference in the lives of others. To ensure that our programs and funding do not suffer, please take time now to consider leaving an endowed gift—a generous statement that will truly last forever.

If your annual gift is: Perpetuate it by giving:*
  $100   $2,500
  $250   $6,250
  $500 $12,500
$1,000 $25,000
$2,500 $62,500

$5,000

$125,000

*At a 4 percent endowment spending level, 25 times an annual gift amount equals an endowed perpetual gift.

 

Ready for Next Steps?

  1. Seek the advice of your financial or legal advisor. (Need an advisor? Look here for advisors familiar with MultiCare foundations and services.)
  2. Contact Frank Colarusso, Gift Planning Manager, at 253-403-1262 or frank.colarusso@multicare.org or Shelley Buck, Sr. Administrative Assistant, at 253-403-3093 or shelley.buck@multicare.org for additional information on giving a gift of closely held stock.
  3. If you include Good Samaritan Foundation, Mary Bridge Children's Foundation, MultiCare Health Foundation or South King Health Foundation in your plans, please use our legal name and federal tax ID number.
Not Sure How to Begin Planning?Download our FREE Personal Estate Planning Kit

A charitable bequest is one or two sentences in your will or living trust that leave to MultiCare Health System a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to MultiCare Health System, a nonprofit corporation currently located at 315 Martin Luther King Jr. Way Tacoma WA 98405, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset — such as real estate or stock — since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Good Samaritan Foundation, Mary Bridge Children’s Foundation, MultiCare Health Foundation and South King Health Foundation as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Good Samaritan Foundation, Mary Bridge Children’s Foundation, MultiCare Health Foundation and South King Health Foundation as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

charitable gift annuity involves a simple contract between you and the Foundations of MultiCare where you agree to make a gift to your favorite MultiCare foundation or program and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to your favorite MultiCare program or foundation or other charities. You cannot direct the gifts.

Saving Bonds

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