Real estate donations can consist of a variety of properties, such as primary residences, vacation properties, undeveloped land, farmland, ranches, or commercial properties.
By donating appreciated real estate, you can avoid realizing capital gains tax on the sale of the property and receive a charitable income tax deduction based on the current value of the gift.
Donating real estate seems like it would be complicated, but in reality, it is actually pretty easy to do. You can transfer ownership by executing or signing a deed, deeding part or all of your real property to your fund at the Foundation, or using your property donation to establish a new fund. The amount of your gift will generally be based on the property's fair market value, which must be established by an independent appraisal. Many donors are motivated by the tax benefits combined with the simplicity of the process, as opposed to the burden of managing or selling the property themselves.
However, it's important to note that if the property you want to donate has an existing debt or a mortgage, you will need to contact us to discuss the potential impact that will have on your charitable tax deduction. Additionally, certain types of property may pose challenges, so please check with us before taking steps to make your gift.
We encourage you to consider donating appreciated real estate as a way to support your community and make a lasting impact on the charities and causes that are most important to you. If you have any questions or would like more information about how a real estate donation might work for you, please don't hesitate to contact Cole Eason, VP of Advancement, at (816) 912-4182 or firstname.lastname@example.org or your professional advisor to learn more.