HELP CHANGE LIVES WITH PASSION UNITED BY
Donating Real Estate
Passion United accepts commercial & residential real estate donations. If you have a vacant lot, commercial/industrial property, single family home, condo or townhome & want to influence life long change in someone's life, work with us to donate your property.
WHAT ARE THE BENEFITS OF
Donating Your Home?
Donating real estate to a charity has many benefits. Donating your home to a charity may give you the opportunity to give an amount that you otherwise may not be in a position to donate. The charity receives an asset that can be used in a variety of ways including event space, housing for the homeless, or can sell the property to utilize the funds towards the cause of your and/or their choosing to maximize your donation’s effect. Other benefits of donating your home to a charity include a major tax deduction, avoiding capital gains taxes, minimizing estate taxes and, of course, making a huge impact on the charity’s recipient’s lives.
Learn more about donating your home to Passion United below or use the form to the right to contact us. Thank you for considering supporting our cause to love, inspire & unite!
Tax Deduction
This one’s the biggie. According to Chris DiLorenzo, a certified public accountant with Nussbaum Yates Berg Klein & Wolpow in New York City, you may be able to use the cost basis of your home (its value when you purchased it originally) as the amount of your charitable deduction. This allows you to take a deduction of up to 60% of your adjusted gross income. If you take your deduction based on the appreciated basis, which is the value of your home right now, your deductions are limited to 30% of your adjusted gross income. It’s a bit complicated, so talk to your trusted financial advisers before moving forward.
Avoiding Capital Gains
“You can avoid capital gains taxes on the appreciated value of the house, and the charity can also avoid those taxes,” says Josh Zimmelman, president of Westwood Tax & Consulting in Rockville Centre, NY. “Your donation is worth more than if you sold the home yourself and donated the proceeds after taxes.”
Minimizing Estate Taxes
Transferring your property to a charity instead of leaving it to someone in your will removes your property from your estate, saving money on estate taxes, according to Zimmelman.
Tell Us About Your Property
Considering donating a property to charity? Tell us a little more about the real estate you’re thinking about donating and one of our experts will help guide you through the process.
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I have found that among its other benefits, giving liberates the soul of the giver.."
-Maya Angelou
DONATING YOUR PROPERTY,
How the Process Works
Tell us about your property
Complete the form above. We will confirm ownership, property information & property type.
Highest & best use evaluation
We will hold a conference call to discuss the condition of the property, location, balance/liens status & potential uses the for the non-profit. Ideally, we want the property/proceeds to go to the specific cause and/or use you prefer. If your property has a balance or liens, we can discuss paying those off or other options based on specifics.
Talk to your advisers
A tax adviser can guide you regarding the potential tax benefits of your deduction. DiLorenzo recommends taking an estimate of the fair market value, a record of your purchase date and the original cost of the property, and the amount you’ve spent on capital improvements to your adviser meeting.
Complete the donation agreement
If you want to proceed with the donation, we will prepare the donation documents for your electronic signatures. The sale will be processed through a local title company to ensure proper transfer of a free and clear title.
Get a professional appraisal
“You want an appraisal in order to give credence to the value of the home you would be giving,” says James G. Aaron, attorney and partner at Ansell Grimm & Aaron in Ocean, NJ. “You’re going to want to take [the donation] as a tax deduction, and you want it to pass muster with the IRS.” Although you can look up your property value online or through your local municipality, a professional appraisal may give you a higher value and lends your appraisal more weight if your donation comes under scrutiny. Your donor organization may require a professional appraisal as well.
Pay off your mortgage
If you haven’t already, consider paying off your mortgage. While this isn’t required, this simplifies the donation process immensely and keeps the receiving organization from having to pay unrelated business income tax if they sell the property. In general, it’s best for all parties involved to donate a home with a clear mortgage, but if this isn’t possible or realistic, talk to your advisers and the donor organization to find out the best path for proceeding with the donation.
Close on the property
Closing can be any date we mutually agree upon but typically takes 2-6 weeks depending on the property and location. Varying by county/property specifics, you will sign electronically, in person at the title company or we may need to next day documents for a notary signing. We will coordinate taking over utilities. Upon closing, you will get a full file of the donation documents including your tax deduction receipt.
No cost, as-is, donation
We make the process simple! We will pay all closing costs & recording fees. If you have a balance or liens on the property, we can discuss us paying those off at closing prior to proceeding with the donation. You do not need to complete any repairs or remove any belongings.
OTHER WAYS TO GIVE
Do you have a passion for helping people?
Team with us to love, inspire & unite!
We are always looking for a wide range of volunteers for events, fundraising, office support, grant writing & more. If you have a passion for helping people, we would love to unite with you!
Passion United partners with organizations that want to give back. There are a multitude of ways a business can give back including product, event space & financial donations. Contact us to discuss your companies desires to love, inspire and unite our communities!
Passion United accepts commercial & residential real estate donations. If you have a vacant lot, commercial/industrial property, single family home, condo or townhome & want to influence life long change in someone’s life, work with us to donate your property to the cause of your choice!
If you’re not in a position to volunteer or donate, simply subscribing, liking, and sharing Passion United’s posts & campaigns can help spread the love. Let’s UNITE our PASSION to help others!