Want to make a big gift to Horizons Foundation without touching your bank account? Consider giving us real estate. Such a generous gift helps us continue our work in and for the LGBTQ community for years to come. And a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you get a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property's maintenance costs, property taxes or insurance.
Another benefit: You don't have to hassle with selling the real estate. You can deed the property directly to Horizons or ask your attorney to add a few sentences in your will or trust agreement.
Ways to Give Real Estate
You can give real estate to Horizons in the following ways:
Submit a few details and see the benefits of an outright gift.
An outright gift. When you make a gift today of real estate you have owned longer than one year, you obtain 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. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.
A gift in your will or living trust. A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for Horizons continues after your lifetime and that your estate will benefit from a federal estate tax charitable deduction.
Submit a few details and see the benefits of a retained life estate.
A retained life estate. Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to Horizons but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though we would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home's value.
Submit a few details and see the benefits of a deferred charitable gift annuity.
A deferred charitable gift annuity. Are you tired of the hassles of maintaining your property such as paying taxes, utilities and repair bills? Consider donating the property to Horizons in exchange for reliable payments for life for you (and someone else, if you choose). When you arrange a charitable gift annuity, you're allowed a federal income tax charitable deduction in the year you set up the gift annuity when you itemize on your taxes. If you use appreciated real estate to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. A gift of unmortgaged property to fund a deferred gift annuity is preferable and generates the greatest tax benefit.
Submit a few details and see the benefits of a bargain sale.
A bargain sale. Want to sell us your property for less than the fair market value? A "bargain sale" may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it's worth. The difference between the actual value and the sale price is considered a gift to us. A bargain sale can be an effective way to dispose of property that has increased in value, and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction at the same time.
Submit a few details and see the benefits of a charitable remainder unitrust.
A charitable remainder unitrust. You can contribute any type of appreciated real estate you've owned for more than one year, provided it's unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.
A charitable lead trust. This gift can be a wonderful way for you to benefit Horizons and simultaneously transfer appreciated real estate to your loved ones tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.
A memorial or endowed gift. A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.
A donor-advised fund (DAF) When retirement plan assets pass to loved ones, they can be subject to federal income and estate taxes. This combined income and estate tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor-advised fund at Horizons as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.
When you establish a testamentary DAF, you can designate how your fund is distributed. You can even designate successor-advisors to make grants from your fund after your lifetime.
Legacy Giving in Action
Steve purchased his home years ago and has watched it grow steadily in value. Still active in his career and traveling frequently, he's beginning to find home ownership more and more of a hassle. At this stage of his life, Steve has decided to move to a 55+ condominium development, where all exterior maintenance is provided and he doesn't have to worry about security issues. Steve sees this as an opportunity to give his existing house to a charity that's important to him while realizing valuable tax benefits.
Steve qualifies for a federal income tax charitable deduction of $250,000, which is for his home's fair market value today. He is able to claim 30 percent of his $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, he can continue to use up the remaining $190,000 deduction. Steve is happy in his new condo and loves knowing that the gift of his house will make a big difference supporting our mission.
- Contact Deb Stallings at 415.398.2333 x103 or firstname.lastname@example.org to discuss the possibility of giving real estate to Horizons.
- Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
- If you include Horizons in your plans, please use our legal name and Federal Tax ID.
Legal Name: Horizons Foundation
Address: 550 Montgomery Street, Suite 700 San Francisco, CA 94111
Federal Tax ID Number: 94-2686530