Raising Money From Real Estate: a List of Resources

Charitable Gift Annuity for Real Estate
By James E. Connell

Mr. Connell provides checklists and other information to help fund raisers evaluate whether a potential real-estate donation can be used to set up a gift annuity, a type of planned gift that generates income for donors. The author shows fund raisers how to determine whether a real-estate gift will generate adequate returns for the donor and the charity, based on such characteristics as indebtedness, likely management fees, required payments to donors, and market value of the property.

ALSO SEE:

Property Rights — and Wrongs

For Non-Profit Groups That Seek Guidance on Real-Estate Gifts, It’s a Buyer’s Market

Available from:

James E. Connell, President, Connell & Associates, 100 Farmstead Circle, Lebanon, Pa. 17042; (717) 272-3243; jec42644@aol.com; free.

“Creative Gifts of Real Estate: Real Cases, Real Gifts”
By Paul L. Harkess

In this speech presented at the 1998 conference of the American Council on Gift Annuities, the author discusses the financial, market, and environmental risks associated with donated properties; donors’ motivations in making such gifts; and various types of information that may need to be gathered on the properties.

Available from: Tape Productions, 8635 West Catalina Drive, Phoenix 85037; (800) 658-5914; $10, plus $2 shipping and handling. (Listen to the speech. RealAudio – length, 44:22)

To obtain the RealPlayer software please visit the Real Networks Web site. Additional help with installing and using that software is also available at http://service.real.com/

“Determining the Value of Donated Property”
Internal Revenue Service Publication 561

This 12-page pamphlet shows donors and charities how to determine the fair market value of donated assets, including real estate. Topics of discussion include potential problems in determining market value, criteria used by the I.R.S. in judging appraisals, and how the service reviews appraisals. Information on penalties for overstating the value of donated property is also provided.

Available from: Internal Revenue Service, (800) 829-3676; free. The publication can also be obtained from the I.R.S.’s Web site: http://www.irs.ustreas.gov.

“Gifts of Real Estate Through Charitable Remainder Unitrusts”
By Frank H. McGrory

In this article from the Journal of Gift Planning, a fund raiser at the Massachusetts Institute of Technology explains how he expanded his institution’s ability to accept real-estate donations, particularly those used to create charitable trusts. It also describes strategies for speeding up real-estate gift transactions and ways to reduce a charity’s risk in handling donated property, such as having the donor rather than the non-profit organization serve as trustee until the property is sold.

Available from: National Committee on Planned Giving. To order a copy of this article from the Journal of Gift Planning (Volume 2, No. 1, 1998), send a check to Belinda Gillett, Subscription Administrator, National Committee on Planned Giving, 233 McCrea Street, Suite 400, Indianapolis 46225; (317) 269-6274; $10.

“Marketing Strategies to Real Estate Owners, Developers and Investors”
By Lynda S. Moerschbaecher

This article from the Journal of Planned Giving provides an overview of basic procedures and regulations associated with gifts of real estate, including a checklist of issues such as property taxes, depreciation, and carrying costs that may emerge with such donations. The author also discusses several types of property ownership and how they may affect real-estate gift transactions.

Available from: National Committee on Planned Giving. To order a copy of this article from the Journal of Gift Planning (Volume 1, No. 1, October 1997), send a check to Belinda Gillett, Subscription Administrator, National Committee on Planned Giving, 233 McCrea Street, Suite 400, Indianapolis 46225; (317) 269-6274; $10.

“The Real Estate Marketing Process: A Guide for Recipients of Real Estate Donations”
By Robert E. Schweiger

Written for charities by a real-estate broker, this 22-page booklet covers procedures and issues involved in securing property gifts, including getting appraisals, assessing the marketability of real estate, transferring property ownership, marketing and selling donated properties, negotiating contracts, and closing the sale. Checklists of the necessary tasks involved in writing a contract and closing the sale of donated properties are also included.

Available from: Robert E. Schweiger, Prudential Florida Realty, 1988 Gulf to Bay Boulevard, Clearwater, Fla. 33765; (800) 282-4244; fax (727) 461-4145; free.

“Transforming Tara From Prospective Reality to Gift Reality”
By Philip M. Purcell

This 37-page outline for charities and fund raisers provides a detailed overview of the issues involved in establishing a real-estate gift program. Topics include how different types of real-estate donations are made, administrative issues involved in running a real-estate donation program, and how to encourage donors to give real estate. The outline also lists additional resources on real-estate gifts.

Available from: Philip M. Purcell, Director of Development and Planned Gifts, St. Vincent Hospital Foundation, 8402 Harcourt Road, Suite 213, Indianapolis 46260; (317) 338-2389; (317) 338-3864 fax; $50 each for non-profit groups.