Types of Donations
Types of Donations
Realty Gift Funds accepts direct outright gifts of all types of real estate. The value of the property is substantiated by a “qualified appraisal” and the donor will receive donation documents from RGF when the deed is transferred at closing. These documents, including the qualified appraisal, express the maximum amount of the donor’s tax deduction, in accordance with IRS regulations.
A free and clear mountain cabin, beach home, second home, farm, or commercial property make easy gifts for both parties.
RGF will make any improvements deemed necessary then resell the property. The excess cash from the sale will be directed as grants to other charitable organizations.
Under certain circumstances, the donor may request a partial payment and donate the balance of the property’s fair market value. A payment for less than the fair market value is referred to as a Bargain Sale. The fair market value of the property is determined by a “qualified appraisal”.
Debt encumbered property, residential or commercial, is an example of transactions typically transferred under a Bargain Sale. The cash payment allows the donor to extinguish the debt or make necessary improvements before transfer, and to use any residual cash for personal needs.
At closing, RGF will make a partial payment to the donor and provide donation documents expressing the full fair market value. These donation documents, including the qualified appraisal, indicate the difference between the fair market value and the cash payment received, and express the donor’s maximum tax deduction in accordance with IRS regulations.
After transfer, RGF will make any improvements deemed necessary then resell the property.
The excess cash from the sale, after recovering the cash payment, will be directed through gifts or grants to other charitable organizations.
Individuals and corporations alike may own property that are environmentally contaminated and may also have charitable giving strategies. RGF provides the link between the environmental solution and the donor’s philanthropic goal, and accepts gifts of contaminated properties.
After careful review, RGF and the donor will arrive at a remediation agreement outlining the costs to achieve a release from regulatory agencies of the impaired condition, relieving the donor and all parties from further environmental liability when the remediation is completed and accepted.
The donor funds the cost of the remediation. The fair market value of the property and the donated cash comprise the donor’s full charitable gift for tax purposes.
Therefore, at closing, the donor will deed the property and pay the remediation costs to RGF who will undertake the agreed remediation program. The donation will be effective the date of the closing, in accordance with donation documents provided at closing by RGF.
After transfer, RGF will manage the remediation to conclusion then resell the property.
The excess cash from the sale will be directed through gifts or grants to other charitable organizations.