Donate Property

Giving a direct gift of real estate to a 501(c)3 public charity can be an incredibly rewarding experience and provide a range of opportunities for you and your family. Not only will it save you from having to pay capital gains tax on the sale of the real estate, but you may also be eligible for a charitable income tax deduction based on its fair market value. Furthermore, a charitable gift annuity or charitable remainder trust could increase your retirement income, while complementing the unique advantages of having your own private foundation. Above all else, donating real estate allows you to make a greater philanthropic impact and leave behind a lasting legacy for generations to come. Before committing to this form of contribution however, it’s important to ensure that the charity in question is equipped and able to process complex gifts such as real estate.

A donor who makes a gift of real estate valued at $1 million directly to charity could make an impact that is greater than twice the size of the same gift made by selling their property and donating the after-tax proceeds instead. This is because when making a direct gift, certain factors like capital gains tax, which can drastically diminish traditional gifts, are eliminated. The end result is more favorable taxation treatment and increased charitable giving power. Of course, gifts of real estate require extra thought and effort to execute correctly, but this should not deter donors from realizing the full benefit of their charitable donations. Real estate represents an incredible opportunity to bridge the gap between wealth preservation strategies and meaningful philanthropic endeavors; perhaps it's time for charities and donors alike to consider taking advantage of the unique benefits associated with giving real estate directly.