FAQ

How do the nonprofits benefit from the donation?
As a result of our services, nonprofits can now accept real estate as a donation without increasing administrative burden or taking on property risk. As the properties are liquidated, the nonprofits will receive the cash proceeds (dependent on the selected solution). In no circumstance will a nonprofit have to take title to the asset, unless that is negotiated between the nonprofit and donor. Additionally, nonprofits can benefit from gaining greater engagement with their donors, who now have another alternative to support the nonprofit.

What are the tax implications to the donor?
We encourage all donors to consult their tax and legal professionals for the exact tax impact of a potential donation. The general rule is that a donor receives a charitable deduction for the “fair market value” of the property less any cash payments made to or on behalf of the Donor. A “qualified appraisal” determines the fair market value. A gift of a noncash asset is deducted from up to 30% of the donor’s Adjusted Gross Income. The IRS allows the tax deduction to be applied in the year of the gift plus 5 additional years, if needed, until the total tax deduction is exhausted.

What are the fees associated with the donation?
This is dependent on the mechanism used to facilitate the donation, and the complexity of the legal documents that may vary donor to donor. The donor is responsible in all cases for the cost of the appraisal, and any legal or other professional fees required to setup the appropriate structure. Overall, our goal for each solution is to have the net proceeds after all fees paid to advisors and partners be at least 90% of the sale price of the asset.

Am I able to use my own legal, tax, financial or real estate professional to execute the donation?
In general, donors will be allowed to use their own professionals to support the completion of the donation. However, TFG does reserve the right to require the use of certain professionals if a donor’s professionals do not have the appropriate experience to facilitate the donation without adding risk. In the case of a real estate professional, TFG will receive a standard referral fee from that related broker.

Can I receive a partial cash payment to either pay off debt, or maintain other liquidity requirements?
In general, the donor will be able to receive a partial cash payment to pay off a property mortgage or maintain personal or family liquidity. If so, this will result in a lower fair market value of the charitable gift.

Can all types of properties be donated?
Every property is considered on a case-by-case basis. All types of property will be considered including agricultural, retail, office, industrial, hospitality, healthcare, single family and multifamily residential, and storage, to name the most common property types. The only properties that are explicitly not considered are timeshares. We typically accept properties with at least $500k of value.

How can a nonprofit accept real estate if they can’t use it, and if it has debt?
Our team accepts the real estate and turns it into cash so the nonprofit doesn’t have to worry about taking title, paying off the mortgage, where the real estate is located or what kind of property it is. We do this in a way that maintains the integrity of the tax benefits for the donor.

How can I give my real estate if I still need to live in my home?
We can take almost any type of property in the US, including business, commercial, vacant land, residential and other properties that don’t require you to give your primary residence unless in a life estate.