Donating Your Company Stock to Charities And Private Foundations (Part 2)
Donating company stock has become an appealing form of philanthropy since Warren Buffett started the trend years ago. Transferring stock ownership to a tax-exempt charity gives way to certain tax advantages to the donor, as illustrated in Part 1 of this article of the same title. Part 2 of this article discusses navigating the related issues of taxation and securities law. Mr. Husbands states that it is important to know whether the stock is publicly traded or closely held, and whether the charitable donee is a public charity or a private foundation. These points impact tax and securities regulations and should be considered when contemplating a stock contribution to charitable entities.