Austin Community Foundation (ACF) offers many ways for donors to maximize their giving through the donation of complex assets. One of the most impactful, yet often overlooked, methods of giving is donating real estate to your local community foundation. Whether it’s a family home, commercial property, or land, donating real estate can significantly benefit both the donor and the community. Here are some compelling reasons why you should consider this unique form of philanthropy.
Increase Your Charitable Impact
When you donate real estate to ACF, you unlock its full value for charitable purposes. Instead of selling the property and donating the after-tax proceeds, contributing the property directly can maximize your contribution. This approach often results in a larger donation because the property is transferred at its fair market value without the burden of capital gains taxes. This means more funds are available to support the causes you care about.
Enjoy Significant Tax Benefits
Real estate donations to ACF come with substantial tax advantages. When you donate appreciated property held for more than a year, you may be eligible for a fair market value tax deduction, potentially reducing your taxable income. Additionally, avoiding the capital gains tax that would be incurred if the property were sold allows you to make a more significant impact with your donation. We recommend consulting with your tax advisor to understand the specific benefits for your situation.
Create a Lasting Legacy
After donating real estate, the proceeds from the sale are placed into your donor advised fund (DAF) at ACF, where they can be invested and grow over time. The charitable funds generated from your property can support nonprofits and vital causes, helping to address critical issues such as affordable housing, education, hunger relief, and more. By including real estate in your philanthropic plans, you contribute to the long-term betterment of your community, ensuring that your legacy endures for generations to come.
How to Get Started
If you’re considering donating real estate, ACF is here to help. Our team of experts will guide you through the process, ensuring that your donation is managed efficiently and effectively. We’ll work with you to understand your philanthropic goals and create a giving strategy that is right for you.
Donating real estate is more than a charitable act—it’s a transformative opportunity to leverage your assets for the greater good. We invite you to learn more—contact us at heretohelp@austincf.org or call 512.472.4483 to discuss the possibility of giving real estate to Austin Community Foundation.
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Coralie Pledger is the Chief Financial Officer at Austin Community Foundation. She has over 30 years of experience as a Certified Public Accountant, Chief Financial Officer, and consultant providing accounting, financial, investigative accounting, and regulatory services.