Real Estate Gift Programs

An Untapped Opportunity

Nonprofit organizations and educational institutions have long relied on gifts of cash and securities to grow their funds and endowments. But with more investments being made in real estate, organizations are turning to gifts of property to supplement and, in some cases, make up for losses from traditional sources of revenue.

Organizations that focus exclusively on generating gifts of cash and securities are going after an ever-shrinking share of donor assets.

Today, a three-fold challenge faces nonprofit organizations and educational institutions:

To compensate for declines in traditional forms of donations, such as cash and securities.
To increase the number of donors who make major and planned gifts.
To find a source of funding that will counteract stock market volatility and ensure more stable growth in funds and endowments.

The answer to this challenge is to develop a comprehensive Real Estate Gift Program.

Many organizations are already taking advantage of this trend. The Chronicle of Philanthropy, in its 15th annual survey of the 400 charities that raise the most money in the U.S., reported in October 2005 that gifts of real estate increased significantly in 2004, helping many organizations raise large sums.

By accepting gifts of property, organizations provide donors with an alternative way to make a significant gift. Individuals who would prefer not to give cash or securities may welcome the opportunity to make a gift of real estate, which can result in attractive personal, financial and tax benefits.

Real Estate Donations: The Fundraising Solution

Opportunity:

Gifts of real estate can be viewed as “found money.” In fact, individuals who are not in a position to give cash or securities may be able to donate, for example, an inherited home, an appreciated investment property or a seldom-used vacation home.

Challenge:

Most nonprofits and educational institutions don’t have the staff, resources or expertise to efficiently solicit, evaluate, manage and sell gifts of real estate.

Solution: