Whitman College realizes that many of our most accomplished and successful alumni are entrepreneurs; ones who organize, operate and assume the risk for a business venture. Often Whitman alumni wish to contribute shares of their non-publicly traded companies to the College. These types of donations tend to be unattractive to most donors due to an IRS requirement for a company appraisal prior to gifting the shares and the high fees associated with the appraisal.
In response to our donors, Whitman College is proud to offer the Entrepreneurship Program. Under this program a donor agrees to transfer shares of his/her company at a later date.
The letter of agreement outlines the transfer to Whitman College of the company shares at a later trigger date. When the agreement is made the donor is recognized as an Associate of the Entrepreneurship Program. Because member company shares have not actually transferred, a charitable tax deduction is not available at the time the agreement is signed.
Whitman College can work with you and your attorney to determine an appropriate trigger date. Typically, the trigger date is when the company completes an initial public offering or when an appraisal of the company becomes necessary. On the trigger date, the shares will be transferred by the donor to the Board of Trustees of Whitman College without any limitation or encumbrance.
The CFO of the college, Vice President of Development and Alumni Relations, and two trustees will review your letter of agreement and company prior to acceptance. When the shares transfer, the college representatives will reassess the gift and make a final determination of acceptance.
When the shares are transferred to the Board of Trustees, the donor will become a full Member of the Entrepreneurship Program, and will be eligible for a charitable tax deduction. The donor may also avoid capital gain realization if the shares were to be sold. All Associates and Members of the Entrepreneurship Program will be recognized in the President's Report of Gifts.
Whitman College's Entrepreneurship Program is a flexible method to assist donors with non-traditional or complicated gifts. From a sale of a family business to an IPO of dot.com companies, and everything in between, Whitman College has the resources and desires to assist you in your needs. (Questions to answer.)
If you believe that the Entrepreneurship program is the correct gift for you, please contact the Office of Planned Giving at (509) 527-5989.