If you own real estate (such as a home, vacation property, vacant land, farmland, ranch or commercial property) which is no longer needed for its original purpose or income production, donating it to support Cru may be a great option for you—and it will certainly help to share Jesus and build disciples in wonderful ways!
Naturally, donation of real estate has to make sense financially for you, and for the Cru ministries you want to support. This doesn’t always add up for every property, but it can work on many.
Here are some of the benefits you may enjoy:
- Avoid paying capital gains tax.
- Receive a charitable income tax deduction.
- Leave a lasting legacy.
How you make a gift of real property
Your real property may be gifted to Cru by executing or signing a deed transferring ownership. You may deed part or all of your real property to Cru. Your gift will generally be based on the property’s fair market value, which must be established by an independent appraisal.
When the property sells, the proceeds go to build God’s kingdom through Cru ministries. You want to share the Good News, and this is a great way to do so.
As soon as Cru Foundation is in receipt of the deed, we take over the expenses, then expenses are deducted from the sale proceeds before they’re distributed to the ministries of your choice. Your responsibility for the property is over once the donation is made—but you retain the joy of giving the funds from the sale to the ministries you love.
Can you make a gift of mortgaged property?
Please contact us if the property you wish to give has existing debt or a mortgage. Check with us on the capital gains tax implications of your gift. You also may be interested in life income options.
Turn tax dollars into “kingdom dollars”
The sale of an investment property will usually result in taxes as a result of the transaction. But a Great Commission Donor Advised Fund can help you put those dollars into ministry instead of turning them over to the government. Rather than “sell, then give”—donating from what’s leftover after taxes—you can actually “give, then sell,” and turn those tax dollars into additional ministry dollars. See the illustration below to see how!
This scenario assumes a $100k cost basis, an ordinary income tax rate of 37%, and capital gains rate of 23.8% (20% plus NIIT of 3.8%).