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Joan’s Toolbox: Donating Real Estate

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We’ve all heard the expression, “Home is where the heart is.”

Well, it’s doubly true for those who donate their real estate to the Delaware Community Foundation.

Giving real estate is a simple way for you to make a powerful impact on charitable causes and organizations that are close to your heart, while reducing taxes that often go along with the sale of an appreciated property.

I’ve written a lot in the past about the use of non-cash donations to maximize charitable giving. Donations of real estate – including residential homes, commercial properties and undeveloped land – fall in this category. In many cases, it’s a win-win for donors and for the community.

Donors who contribute their real estate to the DCF receive a charitable income tax deduction based on the fair market value of the property, with no capital gains tax on the transfer.

They also don’t have to pay real estate taxes, liability insurance or maintenance costs on the property. This can be a sizable tax savings for someone with appreciated, highly marketable real estate property.

Because you’re giving, not selling the property, the deductible amount is often higher than if you had sold the property yourself and then donated the proceeds to the DCF.

With most donations of real estate, the DCF typically sells the property on your behalf. We handle the sale for you, including paperwork, dealing with realtors and all the details.

When the property is sold, we deposit the proceeds into a charitable fund. You name the fund and work with us to determine how the proceeds will be used for charitable causes.

Give us a call to talk about your potential gift. We can help you determine when is the best time for you to donate and how to proceed with the donation of property.


Contact Joan Hoge-North at 302.504.5224.