Charitable Equity Partnership Example

cep_womanThe business owner donates a percentage of corporate stock to the GCF Trust. The owner gets a tax deduction — the equivalent of taking money tax-free from the business.

Any profit from the Trust-held shares is taxed at no more than half the rate assessed to the business owner. The Trust holds the shares until the business is sold, including the Trust-held shares. (You can sell to whomever you want, including family members.)

You can also reinvest tax-free cash in your business, increasing its value. We set up a Donor Advised Fund (DAF) account, where your after-tax proceeds go. Through this DAF, you decide which ministries receive contributions. It’s totally up to you.

Consider a Charitable Equity Partnership along with other planning opportunities we can offer to help you with your stewardship planning.

CGF Trust Graphic

How the Partnership Works

The deduction offsets tax on an equal amount of current income. This is like taking money tax free from the business.

HCharitable Equity Partnership Chart

 

This strategy is proven.

Ed ThomasAsk Ed Thomas. He owns a real estate development business. He has a passion for fulfilling the Great Commission. He was generous in supporting ministry, and he thought he was giving as much as he could. Maxed out.

But then he learned about the Charitable Equity Partnership. He studied it, he investigated, he weighed the options, he prayed. He decided to go for it.

And he could not be more pleased.

“The Trust is a tool to turn tax dollars into Kingdom dollars,” he says.

Now, for the first time, he and his children could give away a minority non-voting interest in their primary business without losing any control — and gain “huge tax advantages.” Ed calls them “new dollars” — newly available dollars, thanks to the tax savings — and he pours them into ministries pursuing the Great Commission.

One great advantage, Ed observes: Generous Christian business owners can use the Charitable Equity Partnership to turn non-liquid assets (like percentages of business ownership) into “immediate Kingdom dollars … instead of waiting for a sale sometime in the future.”

Through the Partnership, he says, “I can accelerate the privilege of giving,” and be more involved than ever “in the eternal destiny of the souls of men and women.”

This is the adventure to which we invite you today. For your sake, and for the sake of your family. For the sake of your business. Most importantly, for the sake of the Gospel.