Real Estate Gifting

A gift of real estate through your will or living trust offers you the flexibility to change your mind and provides the opportunity to make a larger contribution than you may have been able to during your lifetime. With just a single sentence, you can ensure that your support for ALL endures beyond your lifetime.

A donor advised fund

By transferring real estate to your donor advised fund, you can avoid capital gains taxes and receive a federal income tax deduction based on the property’s fair market value when you itemize your taxes.

A deferred charitable gift annuity

Tired of the burdens that come with owning property, like paying taxes, utilities, and repair bills? Consider donating your property to ALL in exchange for dependable lifetime payments to you (and someone else, if you choose). By establishing a charitable gift annuity, you can qualify for a federal income tax charitable deduction in the year the annuity is created, provided you itemize your taxes. Donating appreciated real estate allows you to avoid capital gains tax on a portion of the gift, while spreading the remaining gain over your life expectancy. For the greatest tax benefit, consider donating unmortgaged property to fund a deferred gift annuity.

A retained life estate

If you’re interested in the tax benefits of donating real estate to our organization but wish to continue living in your home for the rest of your life, consider transferring your personal residence or farm to ALL while retaining the right to live in or rent out the property. You would continue to cover real estate taxes, maintenance costs, and insurance. Although ALL wouldn’t take possession of the property until after your lifetime, your gift is irrevocable, so you would qualify for a federal income tax charitable deduction based on a portion of your home’s value.

A charitable remainder unitrust

You can donate any type of appreciated real estate you’ve owned for more than one year, as long as it is unmortgaged, in exchange for a lifetime income stream or payments for up to 20 years. Eligible properties include personal residences (which must be vacant upon donation), commercial properties, farms, or undeveloped land. Real estate is suitable for specific types of charitable remainder trusts. Your estate planning attorney, who will help draft your trust, can provide additional details.

A bargain sale

A bargain sale allows you to sell your property to ALL for less than its market value, with the difference between the sale price and the property’s worth being considered a gift to ALL. This option can be an effective way to dispose of appreciated property, and it’s the only type of gift that provides both a lump sum of cash and a charitable deduction (when you itemize) simultaneously.

A charitable lead trust

This gift can be an excellent way to support ALL while also transferring appreciated real estate to your family, free of tax. Consider funding the charitable lead trust with income-producing real estate that is expected to appreciate in value over the trust’s term.

A memorial or endowed gift

A gift of real estate is a lasting way to honor your loved one for years to come. By making an endowed gift of real estate, your contribution becomes part of our endowment and is invested accordingly. Each year, a distribution is made for the purpose you specify. Since the principal remains preserved, the fund will continue to generate support indefinitely, ensuring your gift has a lasting impact.

An Example of How It Works

Mary purchased a rental property years ago and has seen its value grow steadily over time. As she remains active in her career and frequently travels, she’s finding the management of the property increasingly inconvenient. Mary recognizes this as an opportunity to donate the property to a cause she deeply cares about, while also benefiting from valuable tax advantages.

By donating the property, Mary avoids capital gains tax on its appreciation and qualifies for a federal income tax charitable deduction based on its fair market value. She is pleased to know that her gift will have a lasting impact in advancing our mission.