Asset Type

A C-corp may deduct the value of the charitable gift up to a limit of 10% of its adjusted taxable income. In such cases, a charitable gift by a C-corporation is reported and deducted on its federal income tax return (Form 1120).

When a prospective donor of yours holds an interest in an entity taxed as a partnership, a charitable gift can be an attractive planning opportunity for both the donor and your organization. This is true as long as ALL the partners are on the same page and that the bylaws of the partnership allow gifting.

But the transfer of a partnership interest poses special challenges for both of you.

From a tax perspective, the transfer of a partnership interest poses special challenges for all parties involved. Here's the crucial complicating factor:

Charitable gifts made by partnerships are accounted for by the partners on their individual income tax returns, which means the size and nature of the gift are subject to their individual parameters rather than those of the partnership as a whole.

Coming Soon.