Krystal met with her advisors to discuss the company's value and identify potential buyers. Because the company's client base and product offerings had grown significantly over the years, Krystal soon realized that the business would sell for a significant sum.

• Krystal: "I knew I had a tax problem. If I sold the business, I would lose much of the value to taxes. I needed enough out of the sale so that my spouse and I could retire comfortably."

One of Krystal's advisors recommended that she consider making a gift of some of her stock to her favorite nonprofit organization. If Krystal made the gift prior to the sale of her business, she would avoid capital gains tax on that stock and receive a charitable income tax deduction to further reduce her taxes on the cash she received from the sale.

• Krystal: "I transferred $1 million in stock to the nonprofit and received a $1 million charitable income tax deduction. When the company sold, I was so happy I had listened to my advisor and made the gift."

Krystal's tax deduction made it possible for her to preserve her wealth by avoiding the payment of substantial capital gains tax on the sale of her business. As a result, Krystal was able to use some of the cash from the sale to purchase a condominium and invest the balance for retirement.

What is a gift of stock?

Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to the Peoria Symphony Foundation.

Gifts of Stock and Bonds video

Is a gift of stock right for you?

An outright gift of stock can provide several tax benefits such as generating a charitable tax deduction and avoiding capital gains tax. Please contact us if you have questions about outright gifts of stock.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to create a printable illustration of your income and tax benefits with our calculators.