This document discusses the benefits of donating private stock to charities, including substantial tax savings. It provides an example tax savings calculation for donating $1 million in private stock over 6 years, showing savings of $243,000. The document outlines IRS rules for private stock donations and notes that large institutions like Harvard and Stanford have accepted such donations. It introduces Oxford Valuation Partners as a firm that helps facilitate private stock donations and manages the process.

1. The benefits of private stock
donations
Deducting the value of illiquid common stock
Real World Recommendations from Experts in the Field

2. Contact Information and Disclaimer
These materials and the information contained in this presentation are provided for informational
purposes only and they do not constitute advertising, a solicitation or legal advice. The materials are not
represented to be correct, complete or up-to-date. Accordingly, you should not act or rely on any
information in this presentation without seeking the advice of an attorney licensed to practice law in
your jurisdiction. The materials contained in this presentation do not create and are not intended to
create an attorney-client relationship between you and Oxford Valuation Partners.
T: 212 464 7178
E: info@oxfordvp.com
NEW YORK
244 Fifth Avenue, 274G
New York, NY 10001
LONDON
71-75 Shelton Street
Covent Garden
London WC2H 9JQ
oxfordvp.com

3. Benefits to Donors
 Support a charitable cause
 Receive substantial cash savings from reduced taxes
 A form of Partial Liquidity for illiquid stock
 Recognition with charity and community as a major donor
 Entire process handled by OVP – simple, fast, cost effective and
rewarding
Is donating private stock a common and accepted donation practice?
Answer: Large institutions including Stanford and Harvard have been
accepting private stock donations for years.

4. Sample Tax Savings Calculation
 Assumptions:
 Donor has gross income of $300k per year for six years and $1 million
Fair Market Value in private stock
 Appreciated stock is limited to a 30% annual deduction from gross
income
 The donor saves $243,000 over 6 years
Simplified Scenario
Est. Gross Income Over 6
Years
$1,800,000
Maximum Deduction
(30%)
$540,000
Marginal Tax Rate 45%
Total Tax Savings $243,000

5. Tax Rules for Private Stock Donations
 Appreciated stock donations (value above investment) allow for a deduction up to 30% of a
donor’s annual adjusted gross income
 Stock donations with a basis allow for a deduction up to 50% of a donor’s annual adjusted
gross income – IRC election 170B (requires modeling to determine if worthwhile)
 Donations must be to IRS recognized charities
 Deductions are against ordinary income
 Deductions beyond annual limit carry forward for 5 years
 Approximate tax savings equal an individual’s marginal tax rate (federal + state) multiplied by
the value of securities donated
 To qualify for a deduction, the donation must be accompanied by an independent valuation
appraisal
 The appraiser must sign off on your form 8283
 For specifics, see the IRS Bulletin on Noncash Charitable Contributions
(http://www.irs.gov/irb/2006-46_IRB/ar13.html)

6. Why You May Not Have Heard About This
 Private security donations have languished despite enormous private company
wealth because:
 Very few charities accept private stock donations
 Lack resources and expertise to screen, manage and value private securities
 Unable to respond to a donor’s accountant, board, counsel and transfer agent
 Donors lack the time and resources to navigate a complex private stock
donation process
 Unable to locate an acceptable charity that also takes illiquid stock
 Lack time to facilitate internal transfer process (accounting, legal, transfer agent)
 Require tax expert to confirm tax savings and optimize donation amount
 Valuation Appraisal required for noncash donations over $10,000, excluding
public stock
 Outside valuation firms have historically been very expensive ($25,000-$50,000+)

7. How we add value
 OVP works with a select group of IRS-recognized charities that
share the following traits:
 Accept private security donations
 Strong values and reputation in the community
 Clear objectives and efficient use of proceeds
 Experienced management
 We provide a detailed valuation report and manage the entire
donation process
 The fee typically represents a small percentage of the savings achieved
by the donation
 We can tie this into other compliance valuations (e.g. IRC 409A)
Do I need to get board approval for my donation? Answer: Getting
board approval should be straightforward since donors’ private holdings
are being used as part of a charitable donation, not for cash sale.

8. Conclusion
Contact Information
Oxford Valuation Partners provides valuation and advisory services to
leading private emerging growth companies and investors. Our
experienced professionals assist clients with regulatory compliance,
litigation support, charitable donations of private stock, mergers and
acquisition support, dispute resolution and portfolio valuation.
T: 212 464 7178
E: info@oxfordvp.com
NEW YORK
244 Fifth Avenue, 274G
New York, NY 10001
LONDON
71-75 Shelton Street
Covent Garden
London WC2H 9JQ
oxfordvp.com

9. Profiles
Sanjay Gandhi, General Counsel
 Sanjay has worked on valuation and regulatory engagements across e-commerce,
mobile applications, social media, life sciences, online marketing and financial
services.
 Wealth of experience in operating and advisory roles to companies and investors
over the past 15 years
 Advised Fortune 500 clients on M&A and strategy at McKinsey & Company
 Practiced corporate and securities law with leading international law firms
 Built a venture program for the United Nations across Africa and Asia
 Masters of Law, University of Oxford; Law, McGill University and the University
of New South Wales; Undergrad: Finance and Economics
 Admitted: NY Bar (2001); Executive Committee, VC Law and Technology Section;
Member - Tax and Business Law committees.
 Boards: Advisory Board for Business & Ethics (Wharton/UPenn); Kopernik, a a
non-profit that brings critical technologies to developing countries.

10. OVP Staff: Selected Certified Reports