• Skip to Content
  • Skip to Main Navigation
  • Skip to Search

IU

Indiana University Indiana University Indiana University

Menu Search

Indiana University Foundation

  • Home
  • About IUF
    • Mission & Governance
    • People
    • Financial
    • In the News
  • For Students & Parents
    • Parent Engagement
    • Scholarships
    • Internships
    • Telefund Jobs
  • Leadership Giving
    • Corporations & Foundations
    • Thanks & Recognition
    • Women's Philanthropy
  • Bicentennial Campaign
    • Student Success
    • Global Leaders
    • Ideas & Innovation
    • Healthier State, Nation & World
    • Campus, School & Program Priorities
  • Ways to Give
    • Annual Gifts
    • Matching Gifts
    • Planned & Estate Gifts
    • Payment Options
  • Give Now
  • Search
  • Contact Us
  • Find People
  • My IU
  • Planned & Estate Gifts
    • Wills & Living Trusts
    • Beneficiary Designations
    • Charitable Gift Annuities
    • Charitable Remainder Trusts
    • IRA Charitable Rollover
    • Charitable Lead Trusts
    • Real Estate
    • Memorials & Tribute Gifts
    • Endowed Gifts
    • Donor Advised Funds
  • Why We Give
  • Request More Information
  • For Professional Advisors
  • Contact Us
  1. Home
  2. Ways to Give
  3. Planned & Estate Gifts
  4. Closely Held Stock

Closely Held Stock*

If you hold stock in a closely held business, you may be able to use that stock as a powerful way to support our university's future.

Closely held stock is most often used to support our work in the form of:

An outright gift. You can make a gift of closely held stock as long as the constituting documentation for the business permits additional owners and it is debt-free. The donation of closely held stock first requires you to value the interest in the business entity.

Review this checklist to see if you may benefit from donating closely held stock. Then, consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference.

  • You are a majority shareholder in a closely held corporation.
  • You would like to remove retained earnings from the corporation, without having them taxed again.
  • You would like to maintain a controlling position in the corporation’s outstanding stock.
  • You would like to avoid capital gains taxes on the shares you donate to Indiana University.
  • You would like to receive a federal income tax deduction for the full appraised value of the gift.
  • You would like to support our mission.

A gift in your will or living trust. If you are not ready to make a gift of these assets during your lifetime, consider making a gift of all or a portion of your closely held stock through a gift in your will or living trust.

A charitable gift annuity. Funding a charitable gift annuity with closely held stock not only provides you with fixed payments for life and allows you to support our work, but it can offer numerous financial benefits. You may receive a federal income tax deduction and, if you use appreciated stock, you can eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. It is possible to contribute stock in either a C or S corporation in exchange for a charitable gift annuity. The contributed shares must be valued by a qualified independent appraisal whenever the deduction exceeds $10,000. The appraisal is required in order to substantiate your federal income tax deduction.

A charitable remainder trust. You may be able to use all or a portion of your closely held stock to fund a charitable remainder trust. If you do, you receive a federal income tax deduction on the appraised value of your gift and you pay no capital gains taxes at the time of the gift. The trust pays you or other named individuals payments every year for life or a term of years. When the trust term ends, the remaining principal goes to IU as a lump sum. Although a charitable remainder trust with a flip triggering event works well with most business interests, this type of trust cannot be the owner of S Corporation stock.

A charitable lead trust. In certain situations, you can create a charitable lead trust that allows you to pass your closely held stock to your heirs after supporting IU. The trust makes regular payments to IU for a period measured by a fixed term of years or the lives of one or more individuals. After the term ends, the remaining assets, including any appreciation, pass to your heirs. A properly designed lead trust will produce an estate or gift tax deduction for the value of that portion of the trust designated for IU.

* A gift of closely held stock requires special handling, so you should always consult with your legal or tax advisor first.

View My Free Brochure

Next Steps

  1. Contact us for additional information on giving a gift of closely held stock.
  2. Seek the advice of your financial or legal advisor.
  3. If you include IU in your plans, please use our legal name and federal tax ID.

Legal Name: Indiana University Foundation
Address: Post Office Box 500, Bloomington, IN 47402
Federal Tax ID Number: 35-6018940

View My Free Brochure
Not Sure How to Begin Planning?Download our FREE Personal Estate Planning Kit

Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.Privacy Policy | Cookie Policy

  • Planned & Estate Gifts
    • Wills & Living Trusts
    • Beneficiary Designations
    • Charitable Gift Annuities
    • Charitable Remainder Trusts
    • IRA Charitable Rollover
    • Charitable Lead Trusts
    • Real Estate
    • Memorials & Tribute Gifts
    • Endowed Gifts
    • Donor Advised Funds
  • Why We Give
  • Request More Information
  • For Professional Advisors
  • Contact Us
  • IUF Ethics Point
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • LinkedIn
  • Flickr
Give Now
Indiana University

Privacy Notice | Copyright © 2022 Indiana University Foundation

The Indiana University Foundation solicits tax-deductible private contributions for the benefit of Indiana University and is registered to solicit charitable contributions in all states requiring registration. For our full disclosure statement, see go.iu.edu/89n. Alternative accessible formats of documents and files on this site can be obtained upon request by calling us at 800-558-8311.

  • About IUF
    • Mission & Governance
    • People
      • Board of Directors
      • Corporate Officers
      • Foundation Experts
      • Staff Directory
      • Careers
    • Financial
      • Tax Information
      • Investment Performance
    • In the News
  • For Students & Parents
    • Parent Engagement
    • Scholarships
    • Internships
    • Telefund Jobs
  • Leadership Giving
    • Corporations & Foundations
    • Thanks & Recognition
    • Women's Philanthropy
      • Grants
      • Partner with Us
      • Leadership
  • Bicentennial Campaign
    • Student Success
    • Global Leaders
    • Ideas & Innovation
    • Healthier State, Nation & World
    • Campus, School & Program Priorities
  • Ways to Give
    • Annual Gifts
    • Matching Gifts
    • Planned & Estate Gifts
    • Payment Options
    • Unrestricted Giving
  • Give Now
  • Contact Us
  • Find People
  • My IU

A charitable bequest is one or two sentences in your will or living trust that leave to Indiana University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Indiana University, a nonprofit corporation currently located at Post Office Box 500, Bloomington, IN 47402, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to IU or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate, or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property, or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to IU as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to IU as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and IU where you agree to make a gift to IU and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

Personal Estate Planning Kit Request Form

Please provide the following information to view the materials for planning your estate.

First name is required
Last Name is required
Please include an '@' in the email address

eBrochure Request Form

Please provide the following information to view the brochure.

First name is required
Last Name is required
Please include an '@' in the email address