GENEROSITY PLANNING

Generosity Planning Benefits And Options

While reviewing your financial and real estate portfolio, it is often the best time to discuss a Generosity Plan™.  A Generosity Plan™ is created for those interested in donating to a charitable organization.  A Generosity Plan™ can include donations such as cash, bequests and real estate. Real estate gifting is becoming more popular as donors are learning how they too can benefit. Partnering with a trusted, experienced professional can make all the difference in how powerful your real estate donation can be for your family or business and your charity of choice. 

Reasons To Donate A Gift Of Real Estate 

  1. Satisfy a philanthropic intent
  2. Belief in a charity's mission and want to support its cause
  3. Aspiration to establish a legacy for oneself, family member or business successor
  4. Being charitable may also be beneficial to your family or business's financial goals

Benefits For Donating A Gift Of Real Estate

  1. Reduce capital gains
  2. Remove costs or fees associated with owning the property (taxes, HOA, maintenance, etc.)
  3. Provide charitable deductions (federal and state, where applicable)
  4. Qualify and use an appreciated asset as a charitable donation for tax deduction purposes
  5. Need to create or increase cash flow or supplement retirement income

Partnering With The Walter Joseph Group Provides

  1. One on one guidance to assist with the donation process
  2. The most up to date, innovative solutions from the top professionals
  3. A simple and streamlined process 
  4. A trusted single point of contact 
  5. Options if your charity of choice turns down your real estate gift

6 Ways To Gift Real Estate Property To A Charitable Organization

  1. Outright Donation  An individual or corporation sells real estate property to a charity outright or in a trust.
  2. Bequest  A charity is identified in a will as a beneficiary upon the death of a donor.
  3. Charitable Gift Annuity  The donor transfer real estate in exchange for a guaranteed life income under a contract. In most circumstances the charity will receive the property, sell it, and contributes the proceeds to a trust company so payments can be made to a donor. May not be available in all states.
  4. Charitable Remainder Trust  An irrevocable trust is set up with 2 sets of beneficiaries; income and charitable. The income beneficiary is usually the donor who receives a percentage of income from the trust for life or a term of years. The charitable beneficiary receives the principal of the trust after the income beneficiary dies.
  5. Bargain Sale  Real estate property is sold to charity at less than fair market value (FMV). The donor bypasses the gain on the gift portion and receives a charitable deduction but must recognize the gain on the value he/she receives.
  6. Retained Life Estate  A donor makes a donation of a primary or secondary home but continues to live in it or obtains rental income from it and obtains a charitable deduction based on IRS table. The property then passes to the charity upon the donor’s death.