By: Richard Carnes
As Laurie and I spoke with this couple, we acknowledged that cash is the most common form of charitable gift for most people. However, by giving property, a donor may receive greater tax benefits and conserve cash for other uses. Also, the donor may find that they can sometimes make a larger gift at less after-tax cost by giving real estate or other non-cash property.
Most types of marketable real property may be given. Personal residences, farms, vacation homes, undeveloped land, and rental property are common sources. And, it is possible to give either all or a portion of the property’s value. The property should be readily marketable, especially if the donor plans to make the gift if the form of a life income arrangement.
Giving real property is handled by deeding the property to a charitable organization such as the Kentucky Baptist Foundation. Our staff, along with a donor’s professional advisor can help evaluate the benefits of gifting real estate as well as providing guidance in securing an appraisal and other steps.
Charitable gifts of real estate often involve more tax and legal complexities than other types of donations. Over the years, however, such gifts have provided substantial benefits to both the donors and the charity. To learn more, you may contact the Foundation’s trust counsel, Laurie Valentine, or me at our toll-free number (866) 489-3533.
Richard Carnes is the president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; toll-free (866)489-3533; KYBaptistFoundation.org
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.