Turn Your Business Interests into a Gift for Syracuse

Gifting business interests, like shares in a closely held corporation or an investment partnership, can benefit both you and Syracuse University. While gifts are typically made outright, they can also fund life-income arrangements, such as a charitable remainder unitrust.

A Gift of Business Interest May Be Right for You If:

  • You want to make a gift to Syracuse. 
  • You are an entrepreneur, family business member, or investor.
  • You can transfer your interest to third parties, such as Syracuse.
  • Your interest generates revenue that can flow to Syracuse, or may be redeemed or purchased soon.
  • Your interest is debt-free, and Syracuse University won’t need to make future contributions to the business.

Before making this gift, check for restrictions on transferring shares and ensure they aren’t used as loan collateral. If a loan is outstanding, the IRS may consider this as debt relief, resulting in taxable income.

Tax Benefits:

You may qualify for a charitable income tax deduction equal to the full market value of the shares. Some arrangements allow you to fund a life-income plan, like a charitable remainder unitrust, or reduce gift/estate-tax costs when passing a family business to the next generation (see charitable lead trusts for more). Syracuse University will receive dividends and apply them to your designated purposes.

Note: Special rules apply to S corporation stock gifts—please consult your advisor for optimal tax treatment.

How It Works:

  • You transfer shares of closely held stock to Syracuse University.
  • Syracuse can hold the shares and collect dividends or offer them back to your company for redemption. Dividends or proceeds will support your chosen causes.

Benefits:

  • You receive gift credit, and an immediate tax deduction based on the shares' full market value, minus any liabilities, and avoid capital gains tax on any appreciation.
  • Under certain conditions, you may use closely held shares to fund a life-income arrangement, such as a flip unitrust.
  • You make a meaningful gift to Syracuse University without using cash reserves, benefiting both you and the charity during your lifetime.