Maximize Your Philanthropic Impact: A Tax-Smart Approach

Support AFI through a Gift of Real Estate

Your real estate holdings, whether it’s your family home, undeveloped land, a rental property, or other investments, may represent your most highly appreciated assets. Selling such real estate could result in substantial capital gains taxes. However, by donating your real estate to a 501(c)(3) public charity like a donor-advised fund, you can harness the potential of this valuable investment to make a significant charitable impact through your giving to AFI, aligning with your financial and philanthropic goals.

The Advantages of Donating Appreciated Real Estate Held for More Than One Year

Donating your real estate unlocks several benefits for AFI. Firstly, you have the potential to eliminate the capital gains tax that would arise from selling the property and donating the proceeds, thereby increasing the available funds for charitable purposes by up to 20%. Secondly, you can claim a fair market value charitable deduction in the tax year of the gift, enabling you to allocate those savings towards further charitable contributions.

Ways to Give Real Estate

You can give real estate to AFI in the following ways:

An outright gift
When you make a gift today of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation.
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A gift in your will or living trust
By including a gift of real estate in your will or living trust, you gain the freedom to modify your decision while enabling the possibility of making a more substantial contribution to our work than what may have been feasible during your lifetime. With just a sentence or two, you can secure the continuity of your support for AFI long after you’re gone.
A retained life estate
If you desire the tax benefits associated with donating real estate to our organization but wish to continue residing in your personal residence throughout your lifetime, there’s a solution. You can transfer ownership of your home or farm to AFI while retaining the right to occupy or rent the property for the remainder of your life. You remain responsible for real estate taxes, maintenance fees, and insurance. Although AFI would not take physical possession of the property until after your lifetime, your irrevocable gift entitles you to a federal income tax charitable deduction for a portion of your home’s value.
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A deferred charitable gift annuity
You can relieve property hassles with a charitable gift annuity from AFI. Property maintenance, including taxes, utilities, and repairs can be burdensome. Consider gifting your property to AFI and receive reliable payments for life (and for someone else, if you wish). By arranging a charitable gift annuity, you gain a federal income tax charitable deduction in the year of setup when itemizing your taxes. Utilizing appreciated real estate for this gift allows you to potentially eliminate capital gains tax on a portion of the gift and spread the remaining gain over your life expectancy. For the best tax benefit, a gift of unmortgaged property to fund a deferred gift annuity is recommended.
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A charitable remainder unitrust
Unlock the value of your appreciated real estate by contributing any type of unmortgaged property you’ve owned for more than one year. Whether it’s a vacant personal residence, undeveloped land, a farm, or commercial property, you can exchange it for a reliable income stream for life or a term of up to 20 years. However, it’s important to note that real estate is compatible with specific variations of charitable remainder trusts. For more information and specific details regarding your trust, consult your estate planning attorney who will guide you through the process.
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A donor advised fund
By transferring real estate to your donor advised fund, you can enjoy significant advantages. Not only can you avoid capital gains taxes, but you also qualify for a federal income tax deduction based on the fair market value of the property when you itemize on your taxes. Donor-advised funds, as public charities, offer an excellent avenue for gifting real estate, as they possess the necessary resources and expertise to evaluate, receive, process, and liquidate such contributions effectively. Explore this opportunity to make a meaningful impact while maximizing the benefits of your real estate donations.

Next Steps

Kindly notify us about your generous gift of real estate and share your wishes with us. This will not only allow us to express our gratitude as an AFI lifelong member but also give us the chance to discuss how your valuable contribution will help accomplish our missions.

Contact Us

Contact us for additional information about the donating real estate to AFI. Please notify us of your intentions by submitting the form below.

Seek advice

Seek the advice of your financial or legal advisor.

Include AFI Details

If you include AFI in your plans, please use our legal name and federal tax ID.

Legal Name:
ABS-CBN Foundation International
Address:
1350 Old Bayshore Hwy Ste 520 PMB 314
Burlingame, CA 94010
Federal Id:
94-3292281