Donating Real Estate

Over the last several years a tremendous amount of wealth has been created through real estate appreciation

Gifts of real estate through NPT and its donor advised funds can offer you the opportunity to make large, meaningful gifts and to enjoy substantial tax benefits. 

What kinds of real estate does NPT accept?

  • private residence
  • vacation home
  • apartment building
  • investment property
  • commercial building
  • industrial property 
  • farm, vineyard or undeveloped land
  • timber, oil and gas rights

Outright Gifts of Real Estate
When you make an outright gift of real estate to NPT, you will be able to take a charitable deduction of the fair market value of the property contributed.  This amount may be taken up to 30% your adjusted gross income, and, if the amount is larger than you can use in one year, the surplus can be carried forward as charitable deduction over the next 5 years.  You also avoid any capital gains tax that may apply on a gift of long-term capital gain property.

Gift Through Will or Trust
You may transfer real estate to NPT by a gift through your will or living trust by simply designating the property as a bequest.  While such a transfer does not generate any income tax savings, all bequests to charity from a will or living trust qualify for an unlimited estate tax charitable deduction.

Advantages of Donating to NPT versus establishing a Private Foundation
Gifts of appreciated, long-term capital gain property such as real estate to private foundations are valued at the donor’s basis only, rather than fair market value.  If you have depreciated your interest in a property substantially over time, a gift of property to a private foundation offers little tax benefit.  You can, however, use a gift of real estate to create a family foundation at the National Philanthropic Trust by establishing a Donor Advised Fund or Supporting Organization.  Each option allows you and your family to be involved in setting your philanthropic goals.  Gifts to a Donor Advised Fund or Supporting Organization qualify for the maximum tax benefits allowed – and the valuation of assets contributed is at fair market value.    

Next Steps to Donate Real Estate
Each gift of real estate is unique and is dependent upon the condition of the property and your financial and tax circumstances.  We can provide you all the details in how you can donate real estate.  Please contact one of our gift planning experts at NPT toll-free at (888) 878-7900.