Charitable gifts of closely-held business interests have proliferated over the last two decades, enabling business owners to dramatically increase the amount and impact of their charitable giving, while meaningfully reducing ordinary income, capital gains, and estate taxes. There are two primary planning strategies that business owners employ to capture these enhanced charitable and tax benefits.

The first strategy, and the primary focus of this presentation, involves business owners giving interests in their business prior to an anticipated sale or liquidity event. This strategy allows the business owner to capture a charitable income tax deduction for the value of their business, saving income taxes at their highest marginal tax rate. In addition, upon sale of their business, they are able to avoid or dramatically reduce capital gain taxes on the gifted interest.

The second strategy involves businesses that are not anticipated to sell in the very near future, but nonetheless enable business owners to leverage their generosity by making charitable gifts of interests in their business with the charity holding such interests (generally non-voting interests) longer term. Such gifts are often made on an annual basis with the intent of maximizing the business owner's annual charitable deductions allowable under the tax code. This strategy allows business owners to capture an immediate charitable income tax deduction, reduce the effective tax rate on annual income allocated to the gifted interest, and avoid or dramatically reduce capital gain taxes upon the eventual sale or liquidation of the business.

These strategies enable business owners to exercise wise stewardship of what is typically their most valuable asset, and position them for a meaningful and fulfilling life after the sale of their business pursuing charitable endeavors. Their charitable gifts and subsequent proceeds from the sale of their business can serve as a springboard to serve others and enable business owners to continue to use their business skills, talents, and expertise in the philanthropic arena.

Learning Objectives:

  • How to leverage and enhance their charitable and tax goals and objectives through charitable gifts of interests in their business. 
  • The two primary strategies associated with business interest gifts - gifts prior to an anticipated sale or liquidity event, and gifts where charity may hold gifted business interests longer-term.
  • The various legal and tax considerations associated with gifts of business interests, including a discussion and exploration of unrelated business taxable income, application of the charitable deduction rules for non-cash gifts to various charitable entities, and excess business holdings.
  • The application of the strategies, structures, issues, and considerations of a charitable gift of a business interest through exploration of a giver "success story"/case study.

Thank you to our Sponsors

Event Details

Date: Tuesday, March 05, 2024
Time: 1:00 pm - 2:00 pm Eastern Time
Where: Zoom
Cost: Free
EPI Hours: 1
Register Now

Who Should Attend?

  • Financial Advisors

    One of the critical ‘legs of the stool’ is personal financing planning. An owner must have a strong financial plan & contingency plan post-transition to enable them to thrive in the next act of the lives personally and financially. Exit planning brings this future mindset into the present. Exit is now.

  • Mergers & Acquisition Advisors

    Proper exit planning causes less deals to fall through at the last minute. Connect with CEPAs to build your healthy deal flow network.

  • Family Business Advisors

    More than 50% of lower middle market business owners would prefer to transition to the next generation. Help them succeed with exit planning strategies.

  • Other Professional Advisors

    Regardless of your unique specialty, there is seat at the exit planning table for you. Learn more at

  • Professional Advisors

  • Business Owners & Their Trusted Advisors


The Exit Planning Institute, provides Financial Advisors, Accountants, Consultants, and other advisors of business owners with the critical education to differentiate themselves and add value to their existing client relationships through a credential, conference, courses, and content. Download the CEPA brochure for more information.