Giving Center can proudly say that all proceeds go directly towards supporting the programs and individuals that honestly have no where else to turn.. We have hundreds of requests for help every week, and each situation unique in its own right. Without generous donors such as yourself, we would never be able to help fulfill the needs of those seeking our helping hand.
Real estate donations or gifts are great options for individuals or corporations sitting on assets that are difficult to sell. Instead of continuing to attempt to sell the asset for market value, the individual or corporation can donate the asset to charity and gain tax benefits while expediting transfer of the property. Additionally, for corporations, gifting difficult-to-move real estate could prove the best option from an economic, timing, and public relations standpoint.
Giving Center serves local communities in times of need is a great reason to donate your real estate asset. But, donating real estate can also benefit the individual or corporate donor. Whether it is relieving the burden of property ownership or claiming a tax exemption, donating real estate can prove very lucrative for the donor.
There are a few options to consider when donating real estate assets to a charity. The strategies outlined, below, are detailed along with their benefits
1. An outright donation. By donating the real estate outright, the donor can claim a full tax exemption for the appraised value of the real estate holding. In this scenario, the donor also has full control over the timing of the asset disposal and title transfer.
2. Bargain sale. A person selling a real estate asset can sell it to a charity for a much lower cost than its appraised value. The difference between the market price and the actual sales price can then be claimed as a tax-deductible gift.
3. Charitable remainder trust. This tax-exempt, irrevocable trust can be used by a donor transferring a real estate asset. The charitable remainder trust can be used as a funding source, as the donor will receive an income stream from the trust. And when the trust is terminated, the charity receives the remaining assets. It’s a win-win for both parties. The donor receives an income stream, is exempt for capital gains taxes, and receives a tax donation. Giving Center in turn receives a valuable donation.
For more information on how to donate real estate , please visit our Real Estate with Causes website or give us a call 888-228-7320 to speak with a live representative. For more information from the IRS about donating real estate click here.