The Real Estate Trust at Silicon Valley Community Foundation can help your nonprofit accept real estate donations and alleviate legal burdens and costs.
Partnering with your nonprofit, the Real Estate Trust can work with your donors to accept gifts of real estate. This will allow broader giving opportunities for those who support your organization.
Simplifying complicated gifts
While much of the wealth in Silicon Valley is held in real property, many local nonprofits find it difficult to accept real estate donations. Your nonprofit may not have a real estate expert on staff or may have concerns about the legal burdens and costs.
If your nonprofit is not able to handle the many details of a real estate transaction, this service may be ideal. These services can 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 donors, their advisors and an escrow company to ensure a smooth transfer of title and subsequent sale.
How do our donors and our nonprofit benefit?
The gift is made to the Real Estate Trust, a public charity, which provides the maximum tax deduction. This allows your donors to broaden their giving options and support the charities they value most.
There are a number of ways the proceeds from the sale of the property benefit your nonprofit, including: endowment building, creation of a designated fund that benefits your organization over time or in perpetuity, or immediate impact through a direct distribution to your nonprofit. Your nonprofit may also choose to offer a variety of services, such as charitable remainder trusts funded with a gift of real estate to donors interested in life-income programs, thereby increasing donor interest in bequests and other planned giving options.
What are the administrative costs?
The Real Estate Trust charges a fee for its services. The fee is financed through the proceeds of the property sale. The net sale proceeds are then used to establish or add to a charitable fund at the community foundation. The community foundation’s support fees will apply to the fund. For immediate pass-through distribution to your nonprofit, an administrative fee will be assessed from the sale proceeds.