Raven shareholders donate stock, leading to record levels of giving

Sept. 8, 2021

A lot of Raven Industries shareholders are seeing it as a win-win: Donate some of their company stock before Raven’s pending acquisition, support charitable causes and see a tax benefit.

Since June, Raven shareholders have donated nearly $12 million in shares of the company’s stock to charitable funds held at the Sioux Falls Area Community Foundation, the foundation reported.

Grants from these funds will provide critical support to local nonprofits and will help ongoing and future efforts to enhance and enrich the community, the foundation said.

“Community has always been important to Raven, and it’s been important to our investors, so it’s no surprise that our shareholders are choosing to donate shares of their stock to help strengthen this special place we all call home,” CEO Dan Rykhus said in a statement. “Sioux Falls has been our home since 1956. And even as Raven begins a new chapter, our commitment to this community and our legacy of giving and care will not change; it will continue on.”

By donating their stock, Raven shareholders are not only supporting their community but also implementing a tax-wise philanthropic strategy often used by those facing taxable events, said Mary Kolsrud, the foundation’s vice president for philanthropy.

Since the announcement in June of its upcoming sale to CNH Industrial, Raven stock has gained considerable value.

“From a tax standpoint, donating appreciated assets held more than one year, such as stocks and securities, not only allows someone to avoid capital gains tax, it also provides an immediate deduction for the fair market value of the asset,” Kolsrud said. “So essentially, the donor receives a double benefit: They’ll eliminate capital gains tax, and they’ll receive an immediate deduction of the fair market value of their asset.”

From a philanthropic standpoint, Kolsrud said using a donor-advised fund offers the flexibility for donors to recommend grants to their favorite charities from the fund when the time is right.

“Donor-advised funds really allow donors to develop more strategic giving strategies,” she said. “Many of our donors utilize insights and analysis provided by the foundation to inform their giving. From there, they recommend grants to their favorite organizations and causes to help address the needs and opportunities throughout our area.”

The Sioux Falls Area Community Foundation advises checking with a tax adviser before making any charitable gift.

For those interested in donating shares of Raven stock, Kolsrud said time is of the essence. To avoid capital gains and achieve the maximum tax benefit, the stock must be donated and received in a Community Foundation account before the offer of the sale is accepted, she said.

In the case of Raven Industries, that date is Sept. 15 — that’s when shareholders will meet to vote on the acquisition. Assuming it’s approved by investors and subsequently cleared by regulators, the deal is expected to close in the fourth quarter.

Seeing Raven’s commitment to community live on through its shareholders has been a special thing to witness, Kolsrud said.

“Raven Industries got its start in Sioux Falls and, over the course of 65 years, grew into a successful, highly diversified technology company — a community-focused company that made giving back core to its culture,” Kolsrud said. “For the Community Foundation, it’s been an honor to help Raven shareholders continue that extraordinary legacy of giving and care for the benefit of our community.”

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Raven shareholders donate stock, leading to record levels of giving

A lot of Raven Industries shareholders are seeing it as a win-win: Donate some of their company stock before Raven’s pending acquisition, support charitable causes and see a tax benefit.

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