Nonprofit Services

How the program works –
Four Easy Steps

  1. A donor approaches your public benefit corporation about accepting a gift of real estate.
  2. Your staff explains their partnership with The Real Estate Trust at Silicon Valley Community Foundation to handle gifts of real estate.
  3. Third, your staff contacts the Real Estate Trust and asks that the Real Estate Trust begin the due diligence process to assess the acceptance of the real estate gift.
  4. After a successful acceptance, the Real Estate Trust sells the property and the net proceeds are either placed in an endowed designated fund for your public benefit corporation or distributed directly.

While much of the wealth in Silicon Valley is held in real property, many local nonprofits find that it is difficult to accept real estate donations. Your agency may not have the expertise on staff or may have concerns about the legal burden and cost.

The Real Estate Trust at Silicon Valley Community Foundation can help.

As one of its many philanthropic services, Silicon Valley Community Foundation, through the Real Estate Trust, will partner with agencies wishing to accept gifts of real estate as a tool to help build their endowments. The donor’s gift is made to the Real Estate Trust (a public charity), allowing them the maximum tax deduction. The proceeds of the sale of the asset are earmarked in a designated fund for the charity(ies) the donor chooses.

Simplifying Complicated Gifts

If your agency is not currently equipped to handle the many details of a real estate transaction, this service may be ideal. These include: environmental review and clearance; appraisal and acceptance of the property; title issues and insurance; listing and sale of the asset; and much more. The Real Estate Trust works with the donor, their advisors, and an escrow company for a smooth transfer of title and subsequent sale.

Through this program, your agency may also choose to offer services such as charitable remainder trusts to donors interested in life-income programs, thereby increasing donor interest in bequests and other planned giving options.

What is a designated fund?

Designated Funds are permanently endowed to benefit a specific public benefit corporation. The fund may be spent down over a set number of years, or the public benefit corporation may receive the Fund’s annual 5 percent payout of the average fair market value, using a 13-quarter trailing average. Should the designated organization cease to exist, the funds will be re-directed to a similar purpose.

Administrative Costs

The Real Estate Trust charges a fee for its services, taken from the proceeds of the property sale. The net sale proceeds will be used to establish or add to a charitable fund at the foundation for your public benefit corporation. The current and customary community foundation support fees will apply to the fund.