A business owner who contributes closely held stock to Wentworth-Douglass will be allowed a charitable deduction for the fair-market value of the stock. An additional benefit is that the donor will escape the potential capital-gain tax on any appreciation in the value of the stock.

Subsequent to the gift, the corporation could purchase the stock from Wentworth-Douglass for cash. This not only enables the donor to retain complete control over the company but also makes cash available to Wentworth-Douglass for its current needs. As long as Wentworth-Douglass is not obligated to sell the stock to the corporation, the transaction should produce no adverse tax results.