Considering donating property? You may be wondering...

Can I donate real estate with a mortgage balance?

Yes, we will sell the property through our auction partner. The proceeds of the auction sale will pay off the mortgage balance first, with the remainder going to the nonprofit of your choice (after normal closing costs such as escrow, title fees, transfer tax, real estate commissions, etc.). Prior to the auction, we will determine if the likely value exceeds the mortgage balance. We may have to reject any asset that does not have sufficient equity to result in cash proceeds to the nonprofit.

Can I give a portion of the equity to the nonprofit, or do I have to donate it all?

If your property has a high value, you may elect to donate a portion of the equity to the nonprofit (falling under a Bargain Sale - IRS Section 170).

What type of real estate can be donated?

Any type of property may be donated that has positive equity, a clear title, and no environmental issues. Common property types are land, second homes, estates, rental property, and commercial real estate. We do not accept timeshares or mobile homes.

Is donating real estate easy?

Yes! We partner with a national real estate auction platform and a national title company so we can quickly vet assets and convert them to cash for the nonprofit. Donors don't need to pay for anything and only need to fill out a seller disclosure and sign the deed at closing. We take care of everything else!

What tax deduction do I receive when donating property?

Real estate donations are based on the full appraised value, not the sale price. Capital gains tax may also be avoided when you choose to donate your property instead of selling it. The tax deduction can be carried forward up to five years following the year of sale.

In most cases, you may deduct the difference between the cash received and the fair market value of your asset. This is based on an appraisal specifically completed to assess the value, based on IRS gift appraisal guidelines. You many not deduct proceeds that were applied to pay off mortgages or real estate taxes.

How long does it take to complete a real estate donation?

Most donated properties will be completed within 90 days, and some as quickly as 14 days. Our goal is to maximize the value of the property so the nonprofit can receive as much funding as possible.

Do I have to pay commissions or closing costs?

No. If your property is currently listed with a broker, we will pay the commission owed based on the list price or the tax assessor value (if there is no list price). There are no closing costs to you (the donor) and all unpaid liens will be paid off at closing. Prepaid property taxes and assessments will be remitted back to the donor at closing.

Can either party cancel the donation agreement?

In short, it depends on the transaction. If Giving Property can’t achieve a sale price that results in a surplus, or if there are title or serious repair issues found, the nonprofit may terminate the donation agreement.

What if my property has environmental issues?

We have the ability to process properties with environmental issues. However, only high value assets would be considered due to the risk and complexity. We have investors specialized in environmental clean up and often issue indemnities to sellers via complex insurance placements.