The group took in $15-million in property donations last year. One challenge organizations face regularly is potential real-estate donors who overvalue the property they offer, says Harry Estroff, real-estate gift manager at the Nature Conservancy, in Arlington, Va. They have to keep in mind that they have to turn that property into an asset.” Nonprofits have to be careful about what they’re taking.

“Anyone who is giving away something, you have to wonder how much of a liability it is. Sunshine & Associates, in New York, a realtor who has worked extensively with charities. “Donors may be motivated to get a tax write-off because the appraised value of their property is significantly higher than today’s sales value, which may be nonexistent in the current market,” says Suzanne Sunshine, president of S. And because very few charities have people in place who understand the real-estate business, some could end up with properties that previous owners overvalued. Others don’t have tenants that charities could tap for rents necessary to keep the buildings running. “It’s a good use of staff and management time,” he says. “These can be great gifts for charities because typically they represent a large amount of money - anywhere from $100,000 to the millions.”Ī large, well-placed building or appreciable chunk of property could garner the same amount of money for a charity as several hundred cash donations, and cost organizations less to attract. He says there are numerous reasons why charities should work to take those donations. Magnuson, president of Real Estate for Charities, a consultancy in Albuquerque. “Charities can accept a major gift if they’re set up to do it,” says Chase V. Professionals who advise charities warn they should view real-estate gifts with a wary eye - particularly if they aren’t accustomed to accepting donations of property. Many offers are made by cash-strapped owners wishing to convert their valuedepleted holdings into tax deductions.

As the prices of homes and property plummeted during the past year, charities began to see an uptick in offers of real-estate gifts, according to people who advise organizations on donations of property.īut those gifts sometimes come with entangled strings attached.

Harry estroff real estate gift manager