As the year draws to a close, business owners may find themselves reflecting on their successes and contemplating ways to give more. Many have never thought about donating a portion of their company, and the idea might seem daunting. But NCF has an innovative solution to help you make the most of your business … and your giving.
If you’re a business owner, you may be able to turn your private stock into a powerful force for kingdom good, creating a lasting impact that extends far beyond your bottom line. Here are three inspiring stories of entrepreneurs who have done just that, using NCF’s giving solutions to transform their businesses into engines of generosity.
From profit-focused to people-centered
Brothers Ed and Sam Chan inherited C. Pacific Foods (one of the largest importers of Asian foods in America) from their parents who immigrated to California from Taiwan. While financially successful, the brothers knew they wanted their corporate values to align better with their biblical values. This desire led them on a journey to incorporate generosity into every aspect of their lives and business.
A pivotal moment came when Ed and Sam learned about NCF’s ability to facilitate non-cash gifts of privately held stock. “We wanted to be generous givers,” Sam says. “But the business consumed all the cash. It seemed like there was never much cash available to give.” So, they donated a portion of their company through NCF.
Now, as their business grows, a portion of the income produced becomes available for giving. And when the company sells, a portion of the net proceeds will flow into their Giving Fund at NCF, so they can recommend grants to support the causes they care about.
“Working with NCF was great,” Ed says. “It’s a tool for greater generosity, and it’s a ministry. I like to tell people, ‘Don’t set up a private foundation. You don’t need it. Just use a Giving Fund at NCF, especially if your giving is faith based.’” Read more of Ed and Sam’s story.
Building homes, raising hope
Jeff Rutt, founder of Hope International and Keystone Custom Homes in Pennsylvania, had always viewed his business as a means of giving. But several years ago, he took an extraordinary step that would take his company’s giving potential to new heights.
Jeff and his family donated 89 percent of Keystone’s non-voting stock to NCF. This bold move created The Hopefuls Fund, a Giving Fund at NCF that allows the Rutt family to recommend grants to charities close to their hearts.
“I didn’t fully realize how much clarity and focus the gift would give me until it was all done,” Jeff says. “It’s very life-giving.” Jeff’s son, Ben, who also works at Keystone, believes the gift has helped their family and their staff develop a stronger sense of purpose. “It has provided the very best way to do what we love and allow Keystone to grow and continue to be the engine that drives future growth and future giving,” Ben says. Watch to learn more of the Rutts’ story.
A missed opportunity becomes a mission
Eric Most’s story offers a unique perspective – that of someone who missed the opportunity to give business stock before a sale and has since dedicated his life to ensuring others don’t make the same mistake.
After selling his business and later liquidating a family-owned office building, Eric realized too late the significant implications of these transactions. He had donated the proceeds to his Giving Fund after the sale, missing out on considerable benefits of giving before this liquidity event.
Today, Eric serves as president of the NCF Rocky Mountains team. And he uses his story to educate and inspire other business owners. He has helped dozens of givers avoid the same costly error.
“I tell people my story all the time,” Eric says. “I make sure they know there’s a better way. I want every business owner I meet to know that giving appreciated assets before a major liquidity event is one of the biggest opportunities they will ever have to save taxes and make a significant gift for kingdom work.” Read more of Eric’s story.
Your year-end opportunity
If you are a business owner considering this path, now is an ideal time to explore your options. By taking action soon, you could potentially realize tax benefits for the current year while giving significantly more to charity.
Contact your NCF team now to learn more about the power of giving private business stock.
