Many people who would like to make a meaningful gift to Mount Vernon may hesitate to do so out of a concern that a large measure of their net worth is tied up in a private firm of one type or another. If you find yourself in this situation, you will be pleased to learn that with a little planning, a number of options may be available to you. To a large extent, what is possible will be a function of how a business is organized.
Stock in “C” and “S” Corporations
Even though large, publicly traded companies are structured as C corporations, quite often a family business will be organized in this manner as well. In fact, it is permissible for a C corporation to have only a single shareholder. Of course, the smaller the company, the more likely it is to be an S corporation.
In either case, a donor can contribute some of his or her shares directly to Mount Vernon and receive an income tax deduction for the full fair market value of the shares, so long as the donor has owned the shares more than one year. (In most instances, the fair market value is established through a formal appraisal and independent valuation, arranged and paid for by the donor.)
Mount Vernon reserves the right to review the transaction to determine whether the assets can be easily sold or whether other issues prohibiting a fast sale will pose concerns for our organization.
Typically, Mount Vernon will seek to liquidate the shares it receives as soon as possible, although if the stock pays a good dividend or if there is growth potential, Mount Vernon may elect to retain the stock for a period of time.
When selling its shares, Mount Vernon would consider the feasibility of a purchase by another current shareholder or perhaps by the company itself. An alternative may be to sell the shares to a third party who wants to acquire some or all of the company. Regardless of the identity of the purchaser, a sale of C corporation stock is more advantageous for Mount Vernon because it will pay no tax on the gain. By contrast, gain in S corporation stock will be taxable to Mount Vernon, yet this may well be an acceptable consequence. Likewise, Mount Vernon will be taxed on its share of income earned by an S corporation, but this, too, may turn out to be a satisfactory result.
Partnerships, Limited Liability Companies, and Similar Entities
Just as with stock in a corporation, a donor can choose to contribute to Mount Vernon a portion of his or her interest in some other form of business, so long as the constituting documentation for the business permits additional owners. The tax implications for the donor will generally be along the lines of those associated with a transfer of stock. Naturally, Mount Vernon will also need to assess how it would be affected by retaining or selling what the donor contributes.
Gifts of Assets Made by a Business Itself
It may be that the best way for an owner of a business to benefit Mount Vernon is to have the business itself donate real estate or some other type of property. Frequently, the tax benefits will “flow through” to each owner in proportion to his or her stake in the firm. For its part, Mount Vernon will usually sell what it receives and use the proceeds in fulfillment of its mission.
Planned Giving Calculator
Our web-based calculator can provide you with charitable deduction calculations for a broad range of planned gifts. You may explore a variety of gift options privately, by entering your basic information, customizing your figures, and changing your options any time. This interactive planned giving calculator provides you with an additional tool to evaluate your various planned gift options.
Note: Mount Vernon does not provide tax or legal advice. Gift calculations are provided for illustrative purposes only. The actual values may vary based on the timing of your gift. Please consult your attorney or tax advisor prior to entering into any gift planning arrangement.
Join Our Legacy Society with Your Planned Gift
If you plan a bequest of stock, partnership units, etc. to Mount Vernon through your will or other element of your estate plan, you become a member of our legacy group: the Ann Pamela Cunningham Society. Ann Pamela Cunningham founded the Mount Vernon Ladies' Association in 1853 and tirelessly gathered support from across America to rescue George Washington's home, sparking the U.S. historic preservation movement.
Our hope is that you will let us know about your planned gift so we can thank and recognize you.
You will receive these privileges of membership in the Ann Pamela Cunningham Society:
· Personalized certificate of appreication
· Free subscription to Mount Vernon’s Yesterday, Today, Tomorrow newsletter
· Mount Vernon’s annual report
· Updates on Mount Vernon news
· Invitations to events and special evenings
· Recognition of your planned gift in Mount Vernon publications (unless you prefer to remain anonymous)
Special Considerations
Please contact us about restricting your gift to the specific Mount Vernon program(s) of your choice.
Unrestricted contributions are preferred; however, we also welcome a conversation if funding a specific program is critical to you. We have many projects – both short-term and ongoing – at Mount Vernon for which we seek support. We can tell you about all the available options today – and tomorrow, when posterity will visit George Washington’s home and revere his legacy.
Gifts to Mount Vernon may be made in memory of any deceased person(s) or in honor of any living person(s). If you give us permission to list your planned gift in our annual report, then we will list your name along with your brief gift dedication.
Other Types of Planned Gifts That May Interest and Benefit You
If you are considering an outright gift of business interests or assets, be aware that other gift types – such as a charitable remainder trust, or a charitable gift annuity, or a life estate arrangement involving a personal residence – may be suitable or preferable, taking into account your goals and needs.
Of course, arranging a gift for Mount Vernon through a will or through some other element of an estate plan – e.g., including our organization as a beneficiary of a financial, retirement, or life insurance asset – is also an act of considerable generosity that many people can afford even if a large lifetime gift is not realistic.
Our development staff can help you plan the right gift in light of your assets, income, and family and other estate or financial obligations. You may be able to be a greater philanthropist than you realize. Would you consider making the gift of a lifetime to Mount Vernon if we can show you how?
We Invite You to Contact Us
In all of our 150 years of existence, the Mount Vernon Ladies’ Association has neither requested nor accepted government funding. We are a 501(c)(3) charity and our programs and endowment depend on your support. Our tax identification number is 54-0564701.
Direct your confidential inquiries and notifications about legacy gifts for the benefit of Mount Vernon to:
Mount Vernon Gift Planning
P.O. Box 110, Mount Vernon, VA 22121
1-800-780-1799 / specialgifts@mountvernon.org
Information also available at mountvernon.org/specialgifts.
This information provided by Mount Vernon is not financial, tax, or legal advice.
You should consult your advisors before making your charitable giving decisions.
