What are the benefits of giving real estate to my favorite kingdom causes?
When you donate real estate, some of the potential benefits include:
Can I give away a commercial building I own?
Yes. George wanted to make a large gift to the local Christian school for their capital campaign. Instead of giving cash, he gave a commercial building he owned that had grown substantially in value. Barnabas Foundation worked with George on behalf of the local Christian School to receive the property, sell it and then distribute the proceeds to the school capital campaign and to several other charities dear to George's heart. George was pleased to get rid of the hassle of managing and maintaining the commercial building and to avoid any capital gain taxes. The local Christian School was delighted to receive a significant gift to the capital campaign and not have to worry about managing selling and receipting a gift of real estate.
Can we give a "slice" of a property we own?
Yes. Ken and Sheila contributed a 33% "partial interest" in a lot with the assistance of Barnabas Foundation. Upon the sale of the lot, Ken and Sheila received 67% of the proceeds, Barnabas Foundation received 33% and distributed it to Ken and Sheila's favorite kingdom causes.
Can I donate real estate but continue to use it?
Yes. Emily gave her home but retained the right to continue living there for her lifetime. This is referred to as a gift "subject to a reserved life estate". She received a charitable deduction for a portion of the value of her home and at her death the property was sold and the proceeds were distributed to the charities she recommended.
Is it true we can gift a parcel and retain a lifetime income?
Yes. John and Sharon gave a vacant lot. The lot was sold without any tax liability and Barnabas Foundation paid the donors an annual income based on the value of the property for as long as they lived. Upon the death of the 2nd spouse, the remainder interest will pass to the charity(ies) of their choice.
Our real estate situation is unique. What do we do?
For over 30 years, Barnabas Foundation has helped Christians make gift planning decisions - including unique real estate gift possibilities. Because the exact structure of a particular real estate gift is based on each donor's situation, it is wise to take advantage of Barnabas Foundation's experience and expertise in this area. To get started, simply contact Barnabas Foundation toll-free (1.888.448.3040) for a free, confidential, no-obligation consultation.
HCJB Global is a member of Barnabas Foundation. Their goal is to help caring Christians make tax-wise decisions and strengthen support for ministries close to their hearts.
This is general information and is not intended to be tax or legal advice. Please consult your own advisors.