Steps to Donation
How to Donate – Steps to Donation
Donor proposes property donation to RGF. Please call or write to us to get started.
RGF conducts an initial evaluation testing the suitability the property for the RGF program.
If the property passes the suitability test, RGF shall issue a non-binding Letter of Intent to the donor, proposing terms of an agreement, a potential donation value, an allocation of transaction costs or credits, and the basic provisions of the property transfer. If the property is contaminated, RGF and a qualified environmental company will also produce a risk management plan for the property.
A signed LOI is converted to a binding Agreement and the transfer process begins.
The transfer process concludes with a typical real estate closing that results in the donation. Under an outright gift of real estate, the donor transfers title and receives a charitable deduction. If the property requires environmental remediation, the donor also contributes remediation funds to RGF, receives a charitable deduction for the total value of real estate and cash contributed, and is named on an insurance policy protecting the donor from future liability and risk of the environmental issues. Under a Bargain Sale Agreement, the donor receives a partial cash payment and the charitable deduction will be equal to the difference between the cash payment and the property’s fair market value. In most cases, the donor will obtain a “qualified appraisal” to support the net value of the real estate being donated.
After the donation is made, RGF proceeds to improve the value of an underperforming property, if required, through leasing, repairs, maintenance, capital investments or, if contaminated, the agreed remediation program. RGF then resells the property and distributes excess proceeds from the transaction as charitable gifts or grants.