Real estate is often one of the most valuable assets people own, and many of our donors like to give these types of gifts to advance children’s health. While most donate the proceeds from selling their property, some choose to give the property itself directly to Children’s Hospital Colorado Foundation when they need assistance completing the sale.
If you own residential or commercial real estate that has appreciated over time, donating it to the Foundation can create meaningful impact for children and families. It may also offer you significant financial and tax advantages.
Benefits of Giving Real Estate
Reduce or Eliminate Capital Gains Taxes
If you sell appreciated property, you may owe capital gains tax on the increase in value. By donating the property directly to Children’s Hospital Colorado Foundation, you may avoid those taxes. Plus, you may be able to contribute more than if you sold your real estate and donated the after-tax proceeds.
Receive a Charitable Income Tax Deduction
You may qualify for a charitable deduction based on the fair market value of your property [subject to IRS guidelines and adjusted gross income (AGI) limitations.
Simplify Your Estate
Donating real estate during your lifetime can reduce the size and complexity of your estate while ensuring your property assets support a cause you care about.
Give More Without Impacting Your Cash Flow
Real estate is often a highly appreciated asset that represents significant value but may not contribute to your day-to-day income. Donating property can often allow you to make a larger charitable gift than you might otherwise give with cash.
Create Lasting Impact for Children
Real estate is often a highly appreciated asset that represents significant value but may not contribute to your day-to-day income. Donating property can often allow you to make a larger charitable gift than you might otherwise give with cash.
Common Types of Real Estate Gifts
Many different types of property can be donated to charity. The most frequently gifted properties include:
Vacation or Second Homes
Rental Properties
Undeveloped Land
Commercial Property
Ways to Donate Real Estate
There are several ways to structure a real estate gift depending on your financial and philanthropic goals.
Outright Gift
Transfer full ownership of the property to Children’s Hospital Colorado Foundation. Donors may receive a charitable deduction based on the fair market value of the property (generally up to 30% of adjusted gross income for appreciated property), with potential carryforward for five additional years.
Charitable Remainder Trust (CRT)
Place the property into a trust that sells the asset and provides income to you or your loved ones for life or a term of years. The remainder supports Children’s Colorado.
Charitable Lead Trust (CLT)
Real estate is placed in a trust that provides income to Children’s Colorado for a set period before the remainder passes to heirs, potentially reducing gift or estate taxes.
Bargain Sale
Sell the property to the Foundation for less than market value. The difference between the sale price and market value may qualify as a charitable gift.
How the Process Works
Real estate gifts typically involve a review process to ensure the property aligns with the Foundation’s gift acceptance policies. Our team works closely with donors and their advisors to guide each step of the process. We also partner with experts who help us get the most value from the sale of the property to support our mission.
Vehicles and Other Property
Real estate is just one way to give appreciated property. You may also be able to donate: cars, trucks, boats, RVs, farm or ranch equipment, and other valuable property or assets. Our team can help determine whether your asset may qualify and guide you through next steps.
Email UsInformation provided is general and educational in nature and should not be construed as legal, accounting or tax advice. Every taxpayer’s situation is different. Rules and regulations regarding tax deductions for charitable giving vary, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy or completeness of the information provided. Please consult an attorney or tax advisor regarding your specific legal or tax situation prior to taking any action based on this information.