Gift Calculator for Part Donation and Part Sale
One of the most significant gifts toward the Camp Henderson Capital Campaign resulted from the sale of a donor’s house. Over the nine years I spent managing the Morrisville College Foundation, one of the largest gifts I obtained for that institution was also the sale of a house. For most of us, our homes are our biggest asset and they make it possible for us to support charity on a scale that is unimaginable for most to consider when looking at current or fixed income.
If you bought a house or vacant land in a desirable location, it has likely appreciated considerably over the years. The gentleman I worked with at Morrisville saw his property appreciate by more than 500% over the 20 years he owned it. Since his children grew up and became financially independent, he decided he would sell the property and leave 25% of the sale to his favorite charity. He also wanted to avoid paying as much tax on the sale as possible, so after talking with his CPA, he found Morrisville would receive about twice as much with almost the same cost if we gave 25% of the property (prior to the sale) rather than writing a check after the sale.
His tax advisor helped him realize that if he gave a 25% interest in the property to charity, he would receive two benefits. He would get an income tax deduction for the value of his gift plus save on capital gains tax on the 25% interest given away. By giving charity a 25% interest in the property prior to the sale he saved the capital gains tax on that part. The deduction on that part offset an even larger portion of the tax on the proceeds he received when the property actually sold. He was very pleased with the "double benefit" from giving the property, and Morrisville received a much larger gift than originally anticipated.
Since your benefits will be different, please click here to view a color example of your own – and thank you in advance for considering The Boy Scouts of America Leatherstocking Council as beneficiary of any potential real estate sale.
If you have any questions about maximizing your gift to charity through the sale of real estate, please contact BSA planned giving volunteer Drew Ward at the Ward Arcuri Law Firm: (315) 797-7300.