A home represents many things. To some, a home is an investment and a source of rental income. To others, a home is a retirement asset, one whose equity can be tapped many years down the line. But to others, a home represents something much simpler, an opportunity to live the American dream and escape the dangers of inner city life.
For those aspirational homeowners, owning a property can be truly transformational. Millions of lives have been transformed and improved in just this manner, through organizations like Giving Center and their program: Real Estate with Causes.
How to Donate Your Home to Giving Center
For some, donating a home is the ultimate in charitable giving, a single act that can enhance the lives of whole families and create ripples for generations yet unborn. If you are thinking about making such a significant donation, it is important to do it the right way. With such a big gift, making the most of the donation is a vital consideration, and there are many things to think about.
There are a number of considerations when donating property to charity, from legal requirements to appraisals and tax implications. If you decide to donate your home or property to a registered charity such as Giving Center, you will want to hire a licensed appraiser to determine its fair market value. This is a critical step for tax reporting, and one that should not be skipped.
You will also want to ensure that the charity is reputable, and that the work they do is worthwhile. Not every charity is the same, and you want to do the greatest good possible with your donation. Giving Center is committed to doing just that. The simplest way to donate your home is by transferring the deed. Giving Center has experience accepting home donations should are familiar with this process, and are able to provide you with the paperwork you need to complete the transfer.
It is also important to weigh the pros and cons of a home donation. Depending on what you are trying to accomplish, donating a home may, or may not, be the best approach. Here are some of the pros and cons of a charitable home donation.
- You get to give a significant gift, one that could change the lives of others.
- Depending on the value of the donation, you could receive a substantial tax deduction.
- Giving Centere receives more of the proceeds since charitable institutions are not subject to capital gains taxes.
- You can avoid the home sale process.
- Donating is a simple way to downsize. Couples who purchased their homes decades ago, raised a family and are now retired may choose charitable donation instead of a traditional sale.
- Donating your home during your lifetime could free your heirs from estate taxes when you die.
- You will avoid capital gains taxes on the appreciated real estate. This can be an important consideration, especially for homeowners who have held their property for many decades.
- Donating a home may not be the best way to make a difference. Some charities are better able to handle cash donations.
- You will lose out on the value of the property, and that could be a significant loss to your estate.
- You will not be able to tap your home’s equity to supplement your retirement income or deal with an unexpected financial emergency.