Charles* owned one hundred percent of the stock in a small technology company that he started thirty years before. But at sixty-five years of age, he was ready to start thinking about selling the business.
So Charles met with his advisors to discuss the company's value and iden- tify potential buyers. Because the company's client base and product offerings had grown significantly over the years, Charles soon realized that the business would sell for a more significant sum than he had expected. This would mean that his taxes would be signifi- cantly higher than he originally thought, and would lower the overall sum that Charles would receive post-sale.
“I knew I had a tax problem,” said Charles. “If I sold the business, I would lose much of the value to taxes. I needed enough out of the sale so that my wife and I could retire comfortably.”
One of Charles's advisors recommended that he consider making a gift of stock to his favorite charity. If Charles made the gift prior to the sale of his business, he would avoid capital gains tax on that stock, as well as receiving a charitable income tax deduction to further reduce his taxes on the cash he would receive from the sale. He’d also be able to support a charity he believed in, allowing a portion of his funds to go toward furthering God’s kingdom.
“I transferred one million dollars’ worth of stock to Wycliffe and received a one million dollar charitable income tax deduction. When the company sold, I was so happy I had listened to my advisor and made the gift,” says Charles.
As a result of Charles’ gift to Wycliffe, and the tax advantages that followed, he was able to use some of the cash from the sale to purchase a condominium and invest the balance for retirement. At the same time, Charles enjoyed knowing his gift provided for Bible translation projects that are working to bring hope to people through access to God’s Word in a language they understand.
To learn more about how a gift of business interest can benefit you and the work of God’s Kingdom, visit www.wycliffefoundation.org/whattogive, e-mail us at firstname.lastname@example.org, or call us toll free at 877-493-3600.
*Charles’s story is representative of a donor to the Wycliffe Foundation.