Business Valuation
Business valuation services for donated ownership interests and IRS Form 8283 filings, prepared in accordance with USPAP. Legacy Donation Appraisers values closely held corporations, LLCs, partnerships, and minority ownership interests nationwide.
- USPAP-Compliant & IRS-Qualified Appraisals
- IRS Form 8283 included
- Secure a tax deduction for your non-cash charitable donations
BUSINESS INTERESTS
Private Companies Don't Trade on a Public Market
A closely held business often represents the largest asset a family or founder owns, and its equity can carry substantial unrealized value that never shows up on a personal balance sheet. Donating shares, membership units, or a partnership interest instead of cash lets an owner support a cause while avoiding the capital gains tax that a sale of that stake would trigger.
Because there is no public market price for a private company, the IRS leans heavily on the qualified appraisal requirements for these gifts: income, market, and asset approaches all have to be weighed and reconciled into a single supportable conclusion of value.
Business interest donations often move through a charitable remainder unitrust (CRUT) or a donor-advised fund rather than a direct gift, and the valuation has to hold up under that structure as well as under IRS review.
ENTITY TYPES
The Business Structures We Value Most
Business valuations for charitable donation cover a wide range of entity structures and ownership stakes. Our appraisers match the right approach to each.
- Closely held C-corporations and S-corporations
- Limited liability companies (LLCs)
- Partnerships and family limited partnerships
- Sole proprietorships
- Minority ownership interests
- Controlling ownership interests
- Membership and shareholder interests
- Franchise interests
- Professional practices (medical, dental, legal, accounting)
- Family businesses
- Real estate holding companies
- Investment holding companies
Business Interests Are Often Donated Through a Trust or Fund
Legacy Donation Appraisers values business ownership interests contributed through several charitable structures, each of which relies on the same qualified appraisal to establish fair market value.
Charitable Remainder Trusts (CRTs & CRUTs)
A business interest funds the trust, providing income to the donor while the remainder eventually passes to charity.
Donor-Advised Funds (DAFs)
Shares or membership interests transfer to the fund, which typically arranges a later sale; the appraisal values the interest itself, not the eventual sale price.
Private Foundations
Family-controlled foundations frequently receive closely held stock or partnership interests as part of a broader estate or succession plan.
HOW IT WORKS
How We Value a Donated Business Interest
- 01
Financial Document Review
We review 3-5 years of financial statements, tax returns, and organizational documents such as operating or shareholder agreements.
- 02
Approach Selection
We weigh the income approach (discounted cash flow), market approach (comparable transactions), and asset approach based on which fits the entity best.
- 03
Discount Analysis
Minority and lack-of-marketability discounts are applied and documented where the donated interest lacks control or a ready market.
- 04
USPAP-Compliant Report
We prepare a written valuation report stating fair market value and the methodology used to reach it.
- 05
Form 8283 Part IV Completed
Our appraiser signs the Appraiser Declaration in Part IV so your donation is ready to file with Section B.
CREDENTIALED APPRAISERS
Credentialed by the ASA, NACVA & AICPA
Every business valuation is prepared in accordance with USPAP by appraisers holding credentials with recognized organizations.
BUSINESS VALUATION QUESTIONS
Business Valuation Donation Questions
Do I need a qualified appraisal to donate a business interest to charity?
Yes. When the fair market value of the donated interest exceeds $5,000, the IRS requires a qualified appraisal prepared in accordance with USPAP. The donor completes Section B of Form 8283, and our appraiser completes and signs Part IV, the Appraiser Declaration.
Are minority ownership interests discounted in the valuation?
Yes. Minority interests that lack control typically receive a discount, commonly in the 10-30% range depending on voting rights, distribution rights, and marketability. We document the specific factors and market data supporting the discount applied.
Can I donate a portion of my business, or does it have to be the entire company?
Both are possible. Partial interests require valuation of that specific stake, not just a pro-rata share of the whole company's value, since control and marketability differ from a full-company sale.
What documents do you need to value a closely held business?
We typically need 3 to 5 years of financial statements and tax returns, current interim financials, organizational documents such as an operating or shareholder agreement, and information about ownership structure and any relevant contracts.
How much does a business valuation for a charitable donation cost?
Fees are quoted as a fixed fee before any work begins, never hourly. Scope depends on entity complexity, number of ownership interests, and how complete your financial records are.
How long does a business valuation take?
Turnaround for business valuations typically runs three to five weeks, with expedited delivery available as fast as 11 business days depending on complexity. Tell us your deadline and we'll confirm up front whether we can meet it.
Get Your Business Valued
Scoped to your entity, quoted as a fixed fee.