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Charitable Giving Strategies for the Business Owner

If you hold stock in a closely held business, you may be able to use that stock as a powerful way to support our 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 Cincinnati Playhouse in the Park.
  • 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.

Click on the links below to see the additional ways to fund your gift with closely held stock:

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

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Next Steps

  1. Contact Rachel Kirley at 513-977-2084 or rachel.kirley@cincyplay.com 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 Cincinnati Playhouse in the Park in your plans, please use our legal name and federal tax ID.

Legal Name: Cincinnati Playhouse in the Park
Address: 962 Mt. Adams Circle, Cincinnati OH 45202
Federal Tax ID Number: 31-0624790

Header image of Bill Doyle (Lieutenant Roberts) and Joneal Joplin (Doc) in Mister Roberts. Photo by Jerry Naunheim, Jr.

A charitable bequest is one or two sentences in your will or living trust that leave to Cincinnati Playhouse in the Park 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 Cincinnati Playhouse in the Park, a nonprofit corporation currently located at 962 Mt. Adams Circle, Cincinnati OH 45202, 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 Cincinnati Playhouse in the Park 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 Cincinnati Playhouse in the Park 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 Cincinnati Playhouse in the Park 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 Cincinnati Playhouse in the Park where you agree to make a gift to Cincinnati Playhouse in the Park 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.

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A gift of cash is one of the most popular ways to support Cincinnati Playhouse in the Park. You may gift a specified sum of money or a percentage of your estate.

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.

You may be able to use non-income-producing property such as stamp and coin collections or works of art in exchange for a federal income tax charitable deduction.

You may be able to use non-income-producing property such as stamp and coin collections or works of art in exchange for a federal income tax charitable deduction.

One of the most common assets used to fund a trust or gift annuity is closely held stock in a family business that has the potential to grow over the years. If you want to remain in control of your closely held stock during your lifetime, consider a gift in your will or living trust.

The full value of your IRA, 401(k), 403(b) or other qualified plans is subject to federal and state estate taxes at your death and the distributions from these accounts are subject to federal and applicable state income taxes. Instead, consider naming a charity as a beneficiary of all or a portion of your plan.

By naming Cincinnati Playhouse in the Park as a beneficiary of all or a portion of your life insurance policy, you support our work while retaining the ability to change your gift if your plans change.

A portion of the distributions from commercial annuities is subject to income tax for non-charitable beneficiaries. Naming Cincinnati Playhouse in the Park as a beneficiary of all or a portion of your commercial annuity will allow us to receive the assets you designate to us completely tax-free.

You can name Cincinnati Playhouse in the Park as beneficiary of your bank accounts, CDs and brokerage accounts by designating your account as Payable on Death (POD) or Transfer on Death (TOD) to us.