SIOUX FALLS, S.D. (KELO) — In June Raven Industries announced it was being acquired by the international company, CNH Industrial. Now the sale of the company’s stock is having another big impact on the community.
Since 1980, Raven Industries has been listed on the American Stock exchange and in that time, many people in KELOLAND have invested in the local company headquartered in Sioux Falls.
“A lot of these investors bought the stock many years ago at a very low basis, meaning they bought the stock for a few dollars, and now Raven is trading above $58,” Mary Kolsrud, the Vice President of Philanthropy at the Sioux Falls Area Community Foundation said.
Next Wednesday, Raven Industries will host a shareholder’s meeting, voting on the pending cash sale of the company and all of its shares; for shareholders, that could mean up to a 20 percent capital gains tax on what they’ve earned since purchasing the stock.
“As soon as the potential sale was announced we knew there would be an opportunity for shareholders to donate that stock,” Kolsrud said.
To avoid paying that tax and to continue supporting the Sioux Falls community as Raven Industries has done for decades, many Raven Industries investors are choosing to donate their stock.
“Since the pending acquisition was announced in June, here at the Sioux Falls Area Community Foundation, we’ve seen nearly $12 million in donated shares of the company’s stock at Raven,” Kolsrud said.
It’s a huge increase from what the foundation sees in a usual summer.
“This is by and large exceeding any year that we’ve had in recent history, with donors giving back with such generosity,” Kolsrud said.
And there’s a big incentive for more of those donations to come in ahead of next week’s shareholder’s meeting.
“If you were to donate stock of Raven, you would receive an immediate tax deduction and also avoid capital gains tax,” Kolsrud said.
The stock must be donated and received before the offer of the sale is accepted. And while it’s a tax incentive, these donations of Raven’s stock also come with an even bigger benefit for the Sioux Falls community.
“I think we see that local investors in Raven really care about this community, a lot of those investors live here, so it’s no surprise that now a lot of those investors are looking at ways to give back,” Kolstrud 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. 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,” Raven CEO Dan Rykhus said in a written statement.
The donors working work with the Community Foundation choose which local charities to support. While the foundation works to give charitable advice, Kolsrud always recommends consulting your financial advisor whenever donating.