Securing donated property can significantly bolster the efforts of a nonprofit organization, providing essential space for operations, programs, and community services without the financial burden of purchasing real estate. When you donate real estate to a charitable organization, it is important to ensure that it is directed towards a cause that resonates with you, or at the very least, a cause that will genuinely help someone in need. The value of your real estate donation will be determined by the property's fair market value at the time of donation. We have put together ten proven strategies to help your nonprofit acquire donated property:
1. Leverage Personal Networks
Reach out to board members, volunteers, and supporters who might know property owners willing to donate. Personal connections often lead to valuable opportunities and open doors that traditional outreach cannot.
2. Engage with Local Real Estate Professionals
Build relationships with real estate agents and brokers who can keep an eye out for potential property donations. Many agents are aware of properties that may be available for charitable giving, especially those with clients looking for tax benefits from donations.
3. Collaborate with Financial Advisors and Estate Planners
Financial advisors and estate planners often work with clients looking to make charitable contributions. Inform them about your nonprofit’s mission and property needs so they can recommend property donations to their clients.
4. Promote the Tax Benefits
Highlight the tax deductions available for property donations in your outreach materials. Many property owners are motivated by the significant tax savings they can achieve by donating property rather than selling it.
5. Host Informational Events
Organize events to educate the public about the benefits of donating property to your nonprofit. Invite real estate professionals, financial advisors, and potential donors to these events to spread awareness and generate interest.
6. Develop a Strong Online Presence
Maintain an up-to-date and informative website that clearly outlines your nonprofit’s mission, the impact of property donations, and the benefits for donors. Use social media and email newsletters to reach a wider audience and regularly share success stories.
7. Create a Property Donation Committee
Establish a dedicated committee within your organization to focus on property acquisition. This team can develop targeted strategies, conduct outreach, and follow up on potential leads, ensuring a consistent and focused effort.
8. Build Partnerships with Local Businesses
Partner with local businesses that may have surplus property or are looking to relocate. These businesses might prefer to donate property rather than dealing with the complexities of selling, especially if they can gain positive publicity from the donation.
9. Engage with Community Leaders
Connect with community leaders and local government officials who are often aware of available properties and may have contacts willing to make donations. Their endorsement can add credibility and visibility to your cause.
10. Utilize Property Listing Platforms
Make Use of Property Listing Platforms and explore platforms dedicated to property donations, such as the National Association of Realtors’ and REALTORS® Property Resource (RPR). These platforms can connect you with property owners interested in donating real estate to charitable organizations.
By implementing these strategies, your nonprofit can enhance its chances of acquiring donated property, enabling you to further your mission and expand your impact within the community. Remember, persistence and relationship-building are key components in successfully securing property donations.
The Required Documentation. If your real estate sums up to $5,000 or less, you may use the fair market value that is determined by comparable sales. On the other hand, if your property is worth more than $5,000, you have to get it appraised by a qualified appraiser.
For real estate worth $5000 or less:
A receipt from the charity
Section A of Form 8283 must be completed by the client and attached to their tax return
For real estate worth more than $5000:
A receipt from the charity
Section B of Form 8283 must be signed by an authorized official of the charity
Written appraisal of the property’s value. This appraisal must be from a qualified appraiser and must be completed no more than 60 days before the donation and no later than the date of filing taxes.
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