Case Study #3
An out-of-state owner purchased a resort townhome 4 hours from home. For nearly 30 years the property was used by family and in the last 3 years was leased to a local resident. When the tenant ultimately vacated, the owner was faced with a renovation, a sale, and taxes owed against the long-term increase in value.
For 32 years, this owner had been making modest cash donations to her favorite health nonprofit, $25 per year rising to $100 per year. Though her contributions may have been seen as modest, she was a “loyal donor” committed to the cause.
Indeed, with an opportunity to align her property circumstances to her underlying charitable intent, the owner offered the townhome as an outright charitable gift to this nonprofit, who directed the donor to Realty Gift Fund. RGF accepted the property based on its appraised value.
A broker and a local team of contractors were hired so that marketing occurred at the same time the work was being coordinated and priced. A few days before the work was to begin, RGF received a full-price offer subject to repairs, and the nonprofit received a major gift from a loyal donor with sudden capacity.
Realty Gift Fund
- For the Donor - Able to rid her portfolio of a property no longer being used, in need of repairs, and needing to be sold…all from a long-distance location. Avoided her capital gains tax, captured a charitable deduction and made a major gift to a favorite nonprofit while preserving her liquid assets.
- For the Nonprofits - A great outcome by “doing what it does well”, retaining a loyal donor by meeting her needs. Avoided title and financial risk, and the inherent “mission drift” of taking on a project for which they had limited in-house skills; and received the cash benefit of a real estate gift.
- For the RGF - A great story and a satisfying gift to a worthy nonprofit. “Doing what we do well.”