Chase Magnuson has spent many years working to secure real estate donations on behalf of George Washington University and many others. His work and expertise is captured in a book written with business colleague Dennis Haber, Esq, The Secret Power Behind Real Estate Donations.
Chase believes it is foolish for charities to not seek real estate gifts for their causes as over 45% of the nation’s wealth is in real estate.
Here is a reason that charities may shy away from such gifts “We have this donor who wants to give us a property worth $3 Million but we can’t accept it because it will cost us $5,000 a month to carry it until we can find a buyer”. The book explains why this thinking is rash.
While often complicated, opening up a charity to real estate possibilities creates a new horizon of potential funding for organizations from the asset class where most people’s wealth is held. Donors should consider these five main arrangements to meet their giving needs:
Real Estate donors should make decisions based on their individual situation and their need for cash flow. Bargain Sales, Charitable Remainder Trusts, and Charitable Gift Annuities will presumably all provide either immediate or regular cash flow over time to the donor, along with an immediate tax deduction and other benefits. Such arrangements can be complex but charities should devote time to learning how they might benefit from real estate donations rather than missing a huge source of funding.
Visit here for book information.