$1,000,000 Gift For A Local Library
A California donor wanted to make a donation supporting multiple nonprofits, including a memorial gift in his mother’s name to the Newport Beach Library Foundation which she, herself, had supported over her long life. Any additional proceeds would go to his donor advised fund, allowing him to make additional charitable grants as needs became evident.
Our donor was a careful planner. He acquired a townhome in Sunnyvale, California through a 1031 tax-deferred exchange, which he strategically held for just more than one year as a rental property in order to qualify for capital gain treatment and a market value tax deduction from a charitable donation. As the “year plus a day” holding period neared its end, the donor reached out to Realty Gift Fund (RGF) to begin working on the charitable real estate donation.
After signing a Donation Agreement In October 2022, RGF enlisted a broker in the Silicon Valley area to evaluate and prepare the property for sale. Shortly after the tenant moved out, RGF closed on the real estate donation, took title to the property, and authorized its broker to stage the property for sale.
Upon listing the townhome, RGF’s broker scheduled the initial open houses and arranged for multiple private showings for a strategic group of other brokers. Within a week, RGF had accepted an offer from a qualified buyer who requested a closing in three weeks. The sale closed in late November 2022 resulting in $1,000,000 to the Newport Beach Library Foundation and nearly $200,000 in additional proceeds for a donor advised fund at Vanguard Charitable. By treating this donation with the utmost attention to detail, while at the same time working towards a quick closing, RGF was able to generate two substantial grants for the nonprofit world and build an ongoing relationship with our donor.
To learn more about charitable gifts of real estate, call Bruce Geiss at (505) 660-8470 or Jay Grab at (505) 690-7174 to learn how Realty Gift Fund can benefit your nonprofit.