Why Donate Real Estate to a Public charity?
The two primary reasons that people donate items of value are:
1) To reduce or limit tax liability and/or
2) As an act of goodwill and sharing.
This is true irrespective of whether the gift is cash, valuable coins, real estate, securities, art, or jewelry. Here is a summary of some of the implications of charitable giving:
- You may be able to reduce your tax liabilities substantially when your property has significant long-term appreciation such that you would incur a sizable capital gains tax upon selling it.
- Direct donation of your real estate property to our public charity will allow you to take a full, fair market value tax deduction while eliminating the substantial capital gains tax you would incur if you sold the property first and then donated the proceeds.
- By donating your property, its value is also removed from your estate, further decreasing estate tax liability.
- Since you will no longer own the property, you will not have any property tax liability or maintenance costs to pay.
- By donating a property instead of selling it outright, donors may avoid paying brokers’ fees as well as minimizing legal fees.
- Businesses with properties that are idle, lacking positive cash flow, or are assets that will never reach any usable potential are served well by the tax benefits of donation.
- Businesses with fully depreciated properties that do not serve the financial interests of the company may also reap the benefits of property donation.
- You will be supporting one or more programs of your choosing as a philanthropic gesture.
- Your donation will help to improve the community in which you and your family live.
- In some cases, your donation may enhance an existing preserve or open space area or, potentially, you may be the pioneer who initiates the creation of a park or preserve to which other neighbors may contribute and which future generations may enjoy.