The IICS Foundation can receive gifts of interests in Limited Liability Companies.
IICS, through its partnership with Servant Christian Community Foundation (SCCF), is able to receive gifts of interests in Limited Liability Companies. By giving such interests to the IICS Foundation, rather than selling them first, you can make a larger charitable gift and realize substantial tax benefits at the same time. You will avoid tax on the sale and you will also receive a charitable tax deduction as well.

Gifts of limited liability company interests allow you a great opportunity to give to IICS. The tax benefits of gifting these assets before a sale is made - rather than selling the asset, paying the tax, and donating the net proceeds - can be enormous. Not only do you avoid the tax on the sale, but you also get a sizeable charitable deduction, which saves you even more taxes.

What do you need to do?
If you decide to make a gift of an interest in a Limited Liability Company, you will need to submit to SCCF certain documents pertaining to this interest you wish to donate. This will enable SCCF to determine whether the interest is transferable and what the best method of transfer would be. These documents include:

• Copies of Articles of Organization and any amendments
• Fully executed copy of the Operating Agreement, and any amendments
• Copies of any documents evidencing the withdrawal of members or admission of new members
• List showing the number of units or % of membership interest of all members and the current capital account balances of each member
• Current audited financial statement
• Current Valuation
• Giving Fund Agreement
• Liquidation/marketing plan information
• Historical Distribution/Earnings Information such as previous years K-1

What happens next?

1. SCCF will review the gift and submit a gift offer letter to you as the owner. If the decision is made to proceed, a transfer document will be drawn up, whether by SCCF or your legal counsel.

2. The gift date will be established when the transfer document is executed. Additional items may need to be completed after the gift has taken place, such as an appraisal and IRS Form 8283.

3. SCCF will next either sell the interest or continue the ongoing management of the asset, whichever is appropriate. When the asset is sold, the funds received will be credited to IICS less associated costs.

How can you know if your interest in a limited liability company will make an appropriate gift for tax purposes?
Your gift will qualify for the tax benefits if:

• You have held it for more than one year
• It has appreciated in value
• It is transferable and not restricted by any other contract or obligation

What else do I need to know?
An appraisal may be needed in order to substantiate the value of your tax deduction for the IRS. It will be your responsibility to obtain this. When the asset is sold, SCCF will retain a portion of sale proceeds to cover expenses and support its ministry work. (See www.servantchristian.com.) At sale, SCCF will place between 92 and 98% of the net proceeds into the IICS Foundation account.