There are two major forms of property:
1. Personal Property
Many people have tangible personal property of some value, and often would like to donate it: works of art, antiques, jewelry, rare books, or other collections (such as coins or cars, for example). VCFA may be an excellent recipient of your gift of personal property. We ask that you contact us to discuss this before making the donation, to be certain we can accept your gift. You will be responsible for an outside appraisal of any property valued over $5000.
2. Real Property/Estate
Donating marketable real estate such as a personal residence or vacation home, commercial property, or even vacant land, can be a creative way to make a significant gift to VCFA and at the same time realize important tax benefits and even income.
A gift of real estate can also relieve you of the burden of managing or selling the property. Your benefits from an outright gift of real estate include an income tax deduction for the property's full fair market value and removal of the property from your estate. VCFA may be an excellent recipient of your gift of real estate property. We ask that you contact us to discuss this before making the donation, to be certain we can accept your gift. You will be responsible for an outside appraisal of any property valued over $5000.
Depending on your circumstances and anticipated future needs, you can donate real estate using any one of a variety of mechanisms:
* Partial interest gift:
If you are unable to donate the entire property, you may deed an undivided partial interest to VCFA, or a charitable remainder trust may be funded with such a partial interest. In both instances it is likely that the entire property will be sold, with the proceeds being shared proportionally between you (or your trust) and VCFA. Your charitable deduction for the gift portion may help offset the capital gains tax on your retained portion.
* Retained life estate:
You can give VCFA your personal residence, and still retain the right to live in it for your lifetime. A retained life estate will enable you to take an income tax deduction in the year you make the gift. VCFA would work with you and your advisor to establish arrangements for this plan.
For more information, contact: