How it Could Look
After building his manufacturing company from the ground up over thirty years, George wanted to give back to his alma mater in a way that reflected his life’s work. Instead of selling his shares and donating the after-tax proceeds, he gifted a portion of his privately held stock directly to the University. Because the University had a path to redemption and had the ability to liquidate the shares efficiently, this provided an opportunity to turn George’s equity into impact--immediately funding first-generation scholarships for Notre Dame students. By donating appreciated private stock directly to Notre Dame, George eliminated the capital gains tax liability he would have faced upon a sale and secured a charitable income tax deduction based on the shares' appraised fair market value.