A few years ago, Brad and Sue Goris faced a decision many long-term property owners come across. After owning a small apartment building for 47 years, they considered selling it. The building had not only paid for itself but had also provided steady returns over the decades. But with a potential sale came the burden of a hefty capital gains tax, significantly reducing the final profit they would see from the sale.
Rather than navigating a large tax bill, Brad and Sue chose a different path—one that would benefit both their community and their favorite causes. They decided to donate the building to the Greater Alliance Foundation (GAF).
The Financial and Charitable Benefits of Donating Property
By donating their apartment building, the Goris family secured a substantial charitable deduction, avoiding the capital gains tax altogether. The Foundation promptly sold the building within 30 days and established a Donor-Advised Fund (DAF) in Brad and Sue’s name.
Now, with the proceeds invested in the DAF, the fund will continue to grow over time. Even more meaningful is the ability for Brad and Sue to direct distributions from the fund to charities they love and support. Essentially, they are contributing to causes they already cared about—but on a larger scale—thanks to the tax savings and charitable deduction.
Why Consider Donating Property?
Donating property is a unique but powerful way to give back to your community. For those who own real estate that has appreciated significantly, gifting it to a charitable foundation like the Greater Alliance Foundation can result in:
Avoiding capital gains tax: By donating property instead of selling, you avoid the taxes associated with the sale.
Charitable tax deductions: The charitable deduction you receive for the fair market value of the property can significantly offset your taxes. Creating a lasting charitable fund: Just like Brad and Sue, you can create a Donor-Advised Fund that grows over time, allowing you to direct donations to various charitable organizations over the years.
For individuals considering selling real estate they no longer need, this type of donation can help them leave a charitable legacy, reduce tax liability, and support the community in a more impactful way.
The Power of Donor-Advised Funds
A Donor-Advised Fund gives donors like Brad and Sue the flexibility to support various charitable organizations on their own timeline. Since the money in their fund is invested, it grows over time, providing a continual source of funding for their favorite causes.
Brad and Sue Goris exemplify how charitable planning can transform a financial decision into something that benefits the entire community for years to come.
If you are considering selling real estate or would like to explore charitable giving options, learn how the Greater Alliance Foundation can help you maximize your giving potential while minimizing tax burdens.