Why Donate Real Estate?
Depending on the method you choose, a gift of real estate to MAHHC may allow you to:
- Receive an income tax charitable deduction
- Reduce or eliminate capital gains tax
- Pay no gift tax on the transfer
- Reduce your estate administration expenses
- Relieve the burden of maintenance costs, property taxes, and insurance
Another benefit: you don't have to hassle with selling the real estate. Simply deed the property directly to MAHHC or ask your attorney to add a few sentences in your will or trust agreement.
You can give real estate to MAHHC in the following ways:
An outright gift
When you make a gift of real estate, you qualify for a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to MAHHC, you also eliminate capital gains tax on its appreciation.
A gift in your will or living trust
A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for MAHHC continues after your lifetime.
A retained life estate
You can transfer your residence (or farm) to MAHHC, but keep the right to occupy or rent out the property for the rest of your life. You continue to pay real estate taxes, maintenance fees, and insurance on the property. Though MAHHC would not take possession of your home until after your lifetime, since your gift cannot be revoked, you qualify for a federal income tax charitable deduction for a portion of your home's value.
A memorial or endowed gift
A gift of real estate may be a perfect way to honor a loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of MAHHC’s endowment, and an annual distribution is made for the purpose at MAHHC you designate. Because the principal remains intact, the fund will generate support for MAHHC in perpetuity.
A Donor Advised Fund
When you transfer real estate to your Donor Advised Fund, you avoid capital gains taxes and qualify for a federal income tax charitable deduction based on the fair market value of the property when you itemize your taxes.
To discuss a possible gift of real estate, please call Charlie Clement at (802) 674-7321.