Case Study #5
A high net worth individual had purchased a single-family home for his elderly mother. When it was time for her to move on to assisted living, the home needed a liquidation strategy that aligned with the owner’s social values.
The home was free of debt but in need of many repairs to make it market ready. Deciding on the appropriate extent of repairs and assuming responsibility to organize the work was not the owner’s strong suit.
Working through his financial advisor, the owner discovered Realty Gift Fund. The parties agreed to an outright donation, which transferred the decision and scheduling role to RGF.
While under contract to accept the donation, RGF worked with a local broker to evaluate the market and determine the needed repairs to optimize the sale. RGF prepared a budget and contracted with various professionals to complete the work as quickly as possible in order to list the property at the peak of the selling season. Within a few days of closing the donation and completing the work, a buyer was secured and the sale closed 40 days later.
Without having to undertake a process for which he was not suited, the donor was able to create a charitable gift to a donor advised fund that allows him to recommend grants to numerous organizations over time.
Realty Gift Fund
- For the Donor - Able to avoid a process he had no desire to undertake while fulfilling a charitable strategy that will be deployed thoughtfully over time. Avoided capital gains tax, captured a charitable deduction, and removed a complex asset from his estate safely and simply.
- For the Nonprofits - A significant gift to donor advised fund sponsor seeking to grow its portfolio of managed funds and to help individual donors with their charitable ideas.
- For the RGF - The chance to roll up our sleeves, and undertake a renovation project that delivered a property to market at the perfect value, thereby helping a donor advance his charitable goals.