Your Guide to Donating Real Estate
Have you considered converting real estate to charitable dollars?
Real estate might make up a large portion of your wealth. If you plan to donate assets to charity, consider exploring a real estate gift that can be converted to cash for your charitable giving.
The Community Foundation's complex assets team has decades of experience handling real estate donations, overseeing gifts of agricultural, residential and undeveloped land.
What should I consider before I donate real estate?Each real estate transaction is unique, and we must carefully evaluate property individually before agreeing to accept it. Here's what we look for:
- The property has been owned for more than one year and has significantly appreciated.
- The property is debt-free, or the debt can be paid off before the donation.
- The property can be irrevocably transferred to the Real Estate Charitable Foundation, the Community Foundation's entity that accepts, manages and sells gifted real estate.
- The property is marketable and cost-effective to liquidate, but there are no prearranged sales.
- The donor is comfortable with anticipated transfer costs, including an appraisal fee, legal expenses, closing costs and a one-time transfer fee charged by the Community Foundation.
What steps are involved in making a real estate gift?
If you are interested in donating real estate, we ask that you start by completing our donate real estate form to provide us with some basic information about the property. We'll also ask you to provide a current deed, evidence of title, and other documents that may apply, like lease agreements or LLC operating agreements. We may also conduct site visits, inspections, and environmental surveys before we can confirm our ability to accept the property.
Once the Real Estate Charitable Foundation completes its review and confirms its ability to accept your gift, you or your counsel will prepare documents to transfer the property. The Community Foundation will prepare a gift agreement for you to review and sign. Once the property is sold, the proceeds will flow into your donor-advised fund, which you can use to provide grants to any 501(c)(3) public charity in the U.S., including educational and religious institutions, all on your own timeline.
For more details, check out our video, above, Donating Real Estate.
Questions? Contact us at firstname.lastname@example.org.
The Greater Kansas City Community Foundation does not provide tax, legal or accounting advice. This is for informational purposes only.