Donating Real Estate

Gifting real estate during your lifetime

Unfortunately, few people know about the benefits of gifting real estate to fulfill the call they feel to support ministry. The vast majority of Americans use cash or checks to make charitable donations, whereas, if they donate real estate instead, they potentially could make larger gifts, while also lowering their tax bill.

Specific benefits of gifting real estate typically include:

• A tax deduction equal to the current market value of the property (versus the cost of the property when it was purchased). Your deduction may be carried forward for five years. 
• If the property has increased in value significantly since you purchased it, donating it will usually allow you avoid capital gains tax.
• Minimizing other fees associated with selling property, including broker’s fees, etc.
• Avoiding many of the hassles of preparing the property for sale, negotiating with buyers and other time consuming and frustrating processes.
• Paying less taxes and fees than selling the property outright means you can provide a more generous gift to your ministry or ministries of choice.

What kind of property can I donate?

Most types of real estate can be donated and turned into a gift to ministry. The process can range from fairly simple to more complex, depending on the property and whether it has any encumbrances, such as civil liens or unpaid property taxes. However, the LCMS Foundation has decades of experience working with just about every type of situation and every type of property imaginable, including industrial and retail properties, vacant land and mineral rights. Our goal is to make the process as simple as possible, so you can truly turn a burden into a blessing.

In addition to donating real estate to charity, many of the same benefits apply to donating other appreciated assets, including:

• Publicly traded securities 
• Privately/closely held stock
• Mutual funds
• Artwork
• Collectibles

Choose the LCMS Foundation for gifting real estate

Some ministries and charities may not have the ability to accept donations of real estate, or may struggle at how to convert such gifts to fund their mission. That’s where the LCMS Foundation comes in. We can act as a bridge to liquify the real estate (as a non-profit, we are exempt from the taxes you’d pay if you liquified it yourself), passing on its value to the ministry or ministries you wish to support.