Can you donate privately owned business interests to private foundations?
by: Kyle Anderson
February 8, 2024
Private foundations have the ability to accept donations of private business interests but they face intricate legal, tax, and regulatory complexities in doing so. The scope of eligible business interests for donation encompasses a wide range, including shares in closely held corporations (both C and S types), memberships in LLCs, limited partnership interests, stakes in private equity and hedge funds, as well as pre-IPO shares. Although the process is complex, the donation of private business interests to private foundations can unlock significant philanthropic and financial rewards. However, it is highly advisable to seek specialized legal and accounting guidance to ensure a smooth and compliant donation process.