Much of the wealth in San Luis Obispo County is held in real property. But few local nonprofits accept donations of real estate because of the complexities and risks involved in such gifts. By partnering with the Real Estate Foundation of San Luis Obispo County, you will broaden the giving opportunities for those who support your organization. Nonprofit executives report two major reasons they do not seek more real estate gifts. One reason is that the process of accepting and liquidating these gifts can be time consuming. Another reason is that once the charity’s name is on the title chain, the charity assumes potential unlimited liability if environmental problems arise. Your nonprofit may not have a real estate expert on staff or may have concerns about the legal burdens and costs. The Real Estate Foundation will work with your donors to accept gifts of real estate, liquidate those gifts, and transfer the proceeds to your organization. This allows you to spend more time on programs and services.
How do your donors and your nonprofit benefit?
The gift is made to the Real Estate Foundation, a public charity, which provides the maximum tax deduction. This allows your donors to broaden their giving options and support the charities they value most. There are a number of ways the proceeds from the sale of the property benefit your nonprofit, including: endowment building, immediate impact through a direct distribution to your nonprofit, or the creation of a designated fund at The Community Foundation of San Luis Obispo County that benefits your organization over time or in perpetuity. Your nonprofit may also choose to offer services, such as charitable remainder trusts funded with a gift of real estate, to donors interested in life-income programs, thereby increasing donor interest in bequests and other planned giving options.
What are the administrative costs?
The Real Estate Foundation charges a fee for its services. The fee is financed through the proceeds of the property sale. The net sale proceeds are then distributed to your organization or used to establish or add to a charitable fund at The Community Foundation. The Community Foundation’s support fees will be charged to the fund.