Donating appreciated noncash assets is increasingly recognized as “a smarter way to give”. A donor avoids the inherent capital gain tax of a conventional cash sale, receives a tax deduction against ordinary income, preserves more liquid assets to protect lifestyle, rids an estate of a complex asset that is no longer useful, and simplifies an estate for heirs. The charitable gift of real estate can be shared with multiple nonprofits, including donor advised funds and charitable life-income instruments. A partial cash payment under a Bargain Sale can be used to retire debt, tailor a large asset to an appropriately sized gift, or be used for any other personal reason.
Nonprofits have largely blocked the gifting of complex assets due to title and financial risk, and because they lack the required expertise to guide a gift through the complete gift cycle, ending in a conversion to cash. Collaborating with RGF allows nonprofits to “do what they do well”, drawing donor’s closer to the social cause by opening to the gift of assets that most benefit the donor. Nonprofits avoid the risk of the actual donation, but receive the benefit intended by the donor. Allowing nonprofits to be proactive, with no need to alter board policies, opens fundraising to the largest asset class in America and dramatically increases the quality and size of gifts offered.
The Advisory Community
Attorneys, tax advisors, financial planners, wealth/estate managers, real estate/insurance brokers, and non-profit consultants all benefit from our focus on real estate giving. Offering smart tools for sophisticated philanthropy retains existing clients and can capture the next generation using long-term philanthropic strategies. Converting hard assets to cash placed into donor advised funds can increase management fees, and brokers have smart tool to retain clients and earn transaction fees. RGF will make presentations to clients and professional groups on the unique opportunities of real estate gifts.
Corporate and Private Foundations
Corporations with excess non-core real estate assets and a charitable arm are able to merge goals into single transactions. Foundations with PRI and Impact Investing programs are able to leverage their funds to increase charitable giving.