When the time comes to transfer or sell your business, there are tax and practical reasons for including a charity in the plan.
Is this gift right for you?
A gift of partnership interest is for you if…
- You hold an interest in a real estate, oil and gas, or other investment partnership.
- The partnership no longer fits your investment strategy, or you do not want to receive taxable income from it.
- The partnership agreement permits you to transfer your interest to third parties like us.
- Your partnership interest is not encumbered by debt, and we will not be called on to make any future contributions to or for the partnership.
Gifts of transferable partnership interests — primarily in real estate or oil and gas ventures — can benefit you and further our mission. Gifts are usually made to us outright, but in some cases may be used to fund a life-income gift, such as a charitable remainder unitrust.
You will receive a charitable deduction for your gift, generally based on the difference between your share of the fair market value of the partnership and your share of its liabilities. You will need to consult with your tax advisor regarding proper validation.
What steps do I need to take to contribute a partnership interest?
Because of the technicalities involved, some precautionary steps must be taken. You should first determine if the partnership allows shares to be transferred. Because gifts of partnership interests involve the Roman Catholic Foundation, benefiting your favorite parish, school, or ministry in issues of marketability, taxation, liability, and the potential of later assessments by the partnership, the transfer must be reviewed and approved.
Be sure to first consult with your attorney and accountant to ensure this is an advantageous gift for you. We can work with them to review the benefits and procedures of making a gift.