Charitable Giving:
Business owners often choose to gift all or a
portion of their businesses to qualified charitable organizations.
When this is done the Treasury Department has specific regulations dealing
with who is qualified to perform
the appraisal and what the "qualified appraisal" must contain [CFR
1.170A-13(c)]. A "qualified appraiser",
according to these
regulations, is a person who, among
other qualifications:
-
Is not a party to the transaction, is not related to any party to the transaction, is not married to any
person with a relationship to the transaction, is not regularly used by any of the parties to the
transaction and who does not perform a majority of appraisals for these persons;
-
Holds himself or herself to the public as a valuation practitioner or performs appraisals on a regular
basis;
-
Is qualified to make appraisals of the type of property being valued. The appraiser's background,
experience, education, and memberships, if any, in professional associations must be disclosed;
-
Understands that an intentionally false or fraudulent overstatement of value may subject the
valuation practitioner to a civil penalty; and,
-
Receives an appraisal fee that is not based upon a percentage of the appraised value of the property.
Enterprise Value
Consulting is experienced in performing valuations
for charitable giving purposes, both for
operating companies and for asset holding companies. Our Full Valuation Report satisfies
the Treasury
Department's "qualified appraisal" requirements.
