For most people, charitable giving involves writing a check or transferring appreciated, publicly traded securities. For some people, however, the asset that makes the most sense to donate to charity is real estate. Perhaps you inherited grandma's house last year or have a rental property that you just don't wish to deal with any longer.
Many donors to the Community Foundation have made gifts of real estate to create funds or life-income gifts. From an income tax standpoint, making a gift of real estate that has appreciated in value provides the donor with the same benefit that giving appreciated securities does (a charitable deduction for the gift and relief from capital gains tax on the appreciation).
Not all charities, however, are prepared to evaluate and accept a gift as complicated as real estate. The Greater Des Moines Community Foundation is equipped to evaluate and accept such gifts so that you can ultimately benefit the charities most dear to you.
If using real estate for your charitable giving interests you, the following questions may assist you in preparing for such a gift:
- Do I want to use real estate that is not my current residence?
- If so, do I want to make an outright gift to create a fund?
- Do I like the idea of making a gift but also receiving income from a charitable remainder trust?
- Am I contemplating using the entire property or an undivided interest in the property to make the gift?
Or perhaps a gift of my residence while retaining the right to live in it during my lifetime makes sense:
- Have I provided sufficiently for my children from the other assets in my estate?
- Do I want to relieve the kids of the burden of selling my residence after I am gone?
- Do I have sufficient assets besides my residence to provide for my care if I need to move to an assisted-living environment?
In order to evaluate a potential gift of real estate, the Community Foundation will work with you to learn the specifics of your particular property, including such things as fair market value, marketability, possible environmental issues and related questions. If a charitable gift of real estate interests you, the Foundation can provide you with written guidelines to assist you in compiling the necessary information.
For additional information on this type of fund or for information about the Community Foundation, please contact Sheila Kinman by phone at 515.447.4207 or email. |
