Many donors contribute real estate such as a residence, vacation home, farm, ranch, commercial property or land to the Foundation. These gifts receive the same tax treatment as gifts of securities — no capital gains tax plus deductibility at fair-market value.
Usually, the Auburn University Foundation will accept gifts of real estate if no restrictions are placed on selling the property or the property can be of direct or indirect use by a school, college or other unit of Auburn University. Donors can also transfer title of a personal residence or farm to the Foundation and retain the right to live in or use the property for life. After the death of a surviving spouse, the property comes to the Foundation. A current gift of a home or farm with retained life possession gives the same tax benefits as a gift by bequest — plus immediate income tax savings. Probate costs may be saved as well.
Gifts of property whose value has declined since acquisition should never be transferred directly to the Auburn University Foundation. It would be more beneficial to sell the property, take the deductible loss, donate the money and receive the charitable tax deduction for the amount of the cash gift.
Another charitable property gift mechanism is the bargain sale in which the donor sells property to the Foundation for less than its full fair market value and deducts the difference as a charitable contribution.
Please contact a member of your CVM development team with questions.