CHARITABLE DONATION
Business Valuation for Charitable Donation
Business valuation services for charitable donation covering IRS Form 8283 qualified appraisals, fair market value of donated business interests, and noncash contribution deductions. Equity Business Valuation Services prepares USPAP-compliant qualified appraisals of donated C-corporation shares, S-corporation stock, LLC membership interests, and closely held partnership interests nationwide.
The IRS Qualified Appraisal Requirement for Donated Business Interests
When you donate a privately held business interest worth more than $5,000 to a qualified charity, the IRS requires a qualified appraisal to substantiate the noncash charitable contribution deduction you claim. Shares in a C corporation, S corporation stock, LLC membership interests, and limited partnership interests all fall under this rule, and the completed appraisal must accompany IRS Form 8283, Section B, with the appraiser's signed declaration.
Our appraisers determine the fair market value of the donated interest using recognized income, market, and asset approaches, then document the analysis in a report prepared in accordance with USPAP and the qualified appraisal standards under Internal Revenue Code Section 170. That documentation gives your return the support it needs if the deduction is later examined.
Engagements are quoted as a fixed fee, confirmed before work begins. You can review our business valuation pricing before you request an appraisal.
WHAT WE VALUE
Business Interests We Appraise for Charitable Contributions
Equity Business Valuation Services prepares qualified appraisals of privately held business interests donated to charities, donor-advised funds, and private foundations.
Donated C-Corporation Stock
Fair market value of donated shares in privately held C corporations, with control and marketability discounts applied where supportable.
S-Corporation Shares
Valuations of donated S-corporation stock, accounting for the tax attributes and distribution rights that affect value.
LLC & Partnership Interests
Fair market value of donated LLC membership interests and limited partnership interests, based on the governing documents and market evidence.
Restricted & Founder Stock
Valuations of donated restricted shares and founder equity, reflecting transfer restrictions and lack of marketability.
Minority & Non-Controlling Interests
Analysis of non-controlling positions, including discounts for lack of control and lack of marketability where the facts support them.
Whole & Fractional Ownership
Fair market value of full or fractional interests in closely held operating companies and holding entities.
HOW IT WORKS
How We Prepare Your Charitable Donation Valuation
- 01
Share Your Donation Details
Tell us the business interest being donated, the receiving charity, and the intended donation date so we can scope the engagement.
- 02
Document Review
We gather financial statements, tax returns, the cap table, and governing documents to establish the basis for value.
- 03
Valuation & Analysis
Our appraisers apply the income, market, and asset approaches and determine supportable fair market value and any applicable discounts.
- 04
Qualified Appraisal Report
We deliver a signed, USPAP-compliant report and the completed appraiser declaration on Form 8283, ready to file with your return.
CREDENTIALS
Credentialed Business Valuation Appraisers
Our appraisers hold credentials with leading organizations such as the ASA and NACVA, and every report is prepared in accordance with USPAP.
ASA-Accredited Senior Appraisers
NACVA Members
USPAP-Compliant Reporting
COMMON QUESTIONS
Charitable Donation Appraisal Questions
Do I need a qualified appraisal to donate business interests to charity?
Yes. The IRS requires a qualified appraisal for any noncash charitable contribution of a privately held business interest valued at more than $5,000. The appraisal supports the deduction you claim on Form 8283, Section B, and must be prepared by a qualified appraiser. Donations valued above $500,000 must include the full appraisal with your tax return.
Who completes and signs IRS Form 8283 for a donated business interest?
Form 8283, Section B, is signed by three parties: you as the donor, the qualified appraiser who prepared the valuation, and an authorized representative of the receiving charity acknowledging receipt. Our appraiser completes and signs the appraiser declaration as part of your report.
When must a charitable donation appraisal be dated?
Under IRS rules, a qualified appraisal must be made no earlier than 60 days before the date you donate the property and no later than the due date, including extensions, of the return on which the deduction is first claimed. We set the effective date of value to fall within that window.
Who qualifies as a qualified appraiser under IRS rules?
A qualified appraiser has earned an appraisal designation from a recognized professional organization or met minimum education and experience requirements, regularly prepares appraisals for compensation, and is qualified to value the type of property at issue. Our appraisers hold credentials with organizations such as the ASA and NACVA and meet these standards for business interests.
How do valuation discounts apply to a donated minority interest?
When you donate a non-controlling or non-marketable interest in a private business, discounts for lack of control and lack of marketability may reduce its fair market value below a pro-rata share of the whole entity. We analyze the governing documents and market evidence to determine whether those discounts are supportable and document the basis for any we apply.
Substantiate Your Charitable Deduction with a Qualified Appraisal
Request a USPAP-compliant business valuation prepared to meet IRS Form 8283 requirements.