Charitable Gifting of Real Estate
With approximately $400 billion in annual donations to America’s charities, civic and non-profit organizations, less than 2% of all these gifts are comprised of real estate. This is likely the case since most charitable organizations shy away from real property donations as they find it difficult to accept an asset of this type due to the liability associated with holding real estate as well as the on-going expenses including taxes, insurance, maintenance and utilities.
As specialists in the charitable gifting of real estate, the team at Quantum can assist non-profit organizations, donors and their advisors with all aspects of the transaction. In addition to coordinating the marketing and sale process, our team has specific strategies that can assist the non-profit with the acceptance of real property gifts while attempting to maximize the benefit to the donor.
Upon completion of the property sale, the donor can direct how the cash proceeds will be distributed (full or partial donation to one or more charitable organizations and / or distribution to specific heirs & beneficiaries).
All gifts must have a minimum amount of equity (varies by donation, value and location) be readily marketable and be able to be legally conveyed in a manner appropriate with the customs of the specific jurisdiction of the property. Properties with mortgage debt, environmental issues or other encumbrances will also be considered for gifting. Donor who wish to have a partial cash payment for any reason, including to tailor the size of the gift portion of the contribution, can negotiate a “Bargain Sale” (part cash / part gift).
Please contact Chris Losquadro at 561.624.2680 or click the button below to see how we can assist with your charitable giving plans.
For Individuals and Families
Why Donate Your Property?
- Get a tax deduction for the fair market value of your property & avoid capital gains taxes
- Convenience of sale / no hassle transaction
- Provide for a charity of your choice
- Estate planning purposes
- Receive a cash payment
Types of Real Estate Gifts
- Outright property gifts
- Partial interest donation (Bargain Sale)
- Gifting with the payoff of mortgage loans or other liens & encumbrances
- Life estates
- Conservation, historic and preservation purposes
Donate Throughout the U.S.
Acceptable Properties Include
- Single-family homes
- Condominiums and townhomes
- Vacation homes
- Rental properties
- Multi-family properties
- Commercial & Industrial properties
- Investment real estate
- Farms and ranches
- Vacant land and acreage
For Charitable and Non-Profit Organizations
With over 40% of America’s wealth comprised in real estate, this asset class represents a sizable opportunity for charitable and non-profit organizations to improve their fundraising efforts.
Why Work With Us?
- Enhance fundraising initiatives
- Avoid “Mission Drift”
- Enjoy the benefits of real estate gifting without the risk and expense of property ownership
- Provide alternatives to your organizations existing donor network
- Partner with experts that have completed hundreds of millions of dollars in successful real estate transactions
Frequently Asked Questions
My property has doubled in value within the past 5 years? Can I donate just the appreciated value?
Yes, you can donate just the appreciated value of the property (or even a portion thereof) as long as there is a minimum amount of equity. In most cases, one of our partner charities will provide the donor payment for the initial cost of the property, assuming ownership as well as the responsibility for marketing & sale.
Can I direct which charities received the proceeds from the sale of my property?
Absolutely. Quantum and our non-profit partners will work with the donor of the property to direct the majority of proceeds to one ore more charitable organizations of their choice.
Am I able to donate my vacation or investment property with an outstanding mortgage?
Our firms non-profit partners can accept donations of property with an outstanding mortgage as long as there is a minimum amount of equity. Prior to sale of the property, our non-profit partners will advance payment for the outstanding mortgage balance on behalf of the donor.
Can I donate an investment property with existing tenants?
In most cases our non-profit partners can accept property donations with existing tenants. Typically least terms will need to be at or near those currently offered in the market and the property will need to have a minimum amount of equity.
Would properties with title or environmental issues be considered for donation?
Depending on the extent of the title or environmental issues, it is very possible that our non-profit partners would consider accepting these property donations. These cases will require a level of due diligence that would exceed that of a traditional property donation.
Quantum Realty Advisors, Inc. is quite different from most traditional real estate companies. We are a family owned and operated firm that specializes in working with estate planning attorneys, investment advisors, non-profit & charitable organizations, accounting firm and financial institutions to assist with their real estate needs, or the needs of their clients.
Since our inception in 1998 our real estate brokerage and advisory boutique has successfully completed more than $500 million in residential and commercial property transactions as well as performed advisory services on more than $2 billion of real property investments. We have assisted not only individuals and families but some of the world’s largest financial institutions and asset managers including JP Morgan Chase, the Federal Home Loan Mortgage Corporation (Freddie Mac), First Horizon Bank / IBERIABANK, John Hancock Real Estate and Lend Lease Real Estate Investments.
“Quantum Realty Advisors is a tremendous partner when dealing with real estate in probate and trust administrations. They are extremely diligent, provide excellent service and are very reasonable to work with…. I highly recommend working with them.”
Estate Planning Attorney, Palm Beach Gardens
To learn about how we can assist with your charitable giving plans, please contact Chris Losquadro for a complimentary consultation. Chris can be reached at 561.624.2680 or by using the button below.
Featured Charitable Real Estate Transactions
Preserve / Conservation Land Donation
Quantum represented a corporate property owner with the donation of a 27-acre “island” located within the Intracostal Waterway in Hobe Sound, Florida.
The firm assisted the property owner with the solicitation of prospective civic and non-profit organizations to receive the site as well as shepherding the transaction to transfer and completion.