That’s right, although donating real estate was previously not allowed, recently, it has become a lot more popular. Additionally, donors do not leave empty handed, as these gifts can easily provide a fixed income as well as tax savings. Any form of real estate property can be donated, starting from houses to warehouses, and as the years go by, more and more non-profit organizers are encouraging people to donate real estate properties, since the value of the properties have increased tremendously in the past few years. You can also contact realtors to assess the value of your property by visiting http://www.joinrightathome.com/
How it works
Nowadays, there are many non-profit organizations that have set up planned-giving departments or foundations, while there are still many others that work to help with the process of transaction with consultants. Those who are expert philanthropists say that real estate properties are fantastic untapped donation sources.
There is a total estimate of $40 trillion real estate properties being held, out of which, only 2% of the whole are donations. However, the donations that are made at the end aren’t cheap, as the donations start from $250,000 and go all the way up to $15 million.
Although it might be not possible for an average middle-class family to donate their property to charity, those that own more than one property, for instance, those with commercial properties, vacant plots or inherited houses, can easily manage to donate to charity. It is estimated that there will be over $10 trillion worth of real estate will change hands in the next two decades.
A charitable reminder trust is one way to go about receiving a lifetime worth of income for donors. Additionally, the donor can also opt for tax deductions of the same amount as the property’s value, the taxes on the capital gains can be avoided, and the taxes of the federal capital-gains can be avoided as well, which now has a maximum of 15%. The assets that remain are automatically transferred to charity once the donors die, and it can also be passed on to the heirs in some cases. The trusts can be formed based on the assets’ annual value and are irrevocable.
Options for the homeowners
Donating real estate to charity can be extremely flexible. It is entirely up to the homeowners how they decide to handle their property. They can opt to do a part gift, part sale; you could sell the whole property; or you could set up a trust to ensure that the charity receives only a percentage of the present value.
These transactions can be extremely complicated, which is why, it is advised to donors to take advice from professionals in philanthropy law. One does not necessarily have to give to a specific charity; if they can’t decide, they can always go for a fund that is donor-advised, giving them some say in how the money can be used.
If you want to learn more about the real estate charity, read http://www.nytimes.com/2007/11/11/realestate/commercial/11sqft.html?pagewanted=all&_r=0