real estate

Real Estate and Planned Giving

Recently, a client of mine set up some sort of widget on their website to encourage gifts of real estate – and guess what – we have too many leads, most of whom are not connected to the charity and were just looking online for ways to gift their unwanted real estate.

Apparently, a lot of people have property that they would like to give away (most of which sane charities may reject for various reasons).  But, this phenomenon may be hint to big opportunities being overlooked by most in the fundraising world.

Our latest new webinar – Real Estate and Planned Giving – is scheduled for tomorrow (Wednesday 9/25 at 12 NOON EASTERN).

In this session, we will cover the basics of real estate gifts, and then go through Bargain SalesLife EstatesCRTsCGAs and Lead Trusts as vehicles for creative planned gifts funded with real estate.

Our goal for this session is to expose you the breadth of creative ideas for real estate while showing you how to present these ideas to your donors.


Also, our next Planned Giving Boot Camp dates are set:

And, finally, check out the recordings for our recent sessions for September 2019:

  • Interested in our prior webinar: Is the Great Wealth Transfer Finally Here? (my annual search for the $41 trillion dollar wealth transfer as predicted in the mid-1990’s).  In over 50 data slides, I reviewed all of the latest fundraising and planned giving numbers from Giving USA, the VSE, the IRS (focusing on the itemizer question), and updated demographic projections. Just $35 for the recording and PowerPoint (so you can create your own presentations with the data).  CLICK HERE TO PURCHASE THE RECORDING
  • Interested in our prior webinar: Planned Giving for High Net Wealth Prospects?  This is a new session devoted entirely to planned giving vehicle discussions with High Net Wealth individuals (assets of $5 million+). We will go through tax and planning issues facing this level of prospects and offer a handful of new approaches to Planned Giving that should spark their interest in a structured gift.  CLICK HERE TO PURCHASE THE RECORDING
As always, thank you for considering our programs and services!  Please feel free to email me if you have any questions.
Best regards,
Jonathan Gudema, Esq.
Principal, Planned Giving Advisors, LLC

Year-End Giving Quandaries

The year is winding down and with two weeks left, if you are a planned giving officer or fundraiser that deals with out of the box gifts, it is time to remind ourselves of some of the interesting challenges we might experience.

Here is a potpourri of new and old ideas/rules to consider:

  1. Mail box rule – interesting rule since it means that the date of gift is the day the donor puts the check in the mailbox, not necessarily the date stamped by the post office on the envelope.  My approach – for checks received in early January that are dated with a December date on the check – I would give the donors the benefit of doubt, regardless of the postmark.  By the second or third week of January, I might not be as easy going.
  2. Credit card gifts – I just heard an attorney mention that technically, a credit card gift is not completed for charitable income tax purposes until the date of the donor’s next statement.  Yikes – that means that year end credit card giving is problematic?  My advice is to ignore you read this paragraph.  We are usually talking about small gifts?  (ok – remember my rule – bigger the gift, bigger the precautions – so think twice on this one for gifts in the thousands and above).
  3. Last second of the year gift annuities – I just heard the smartest, toughest attorney in the Planned Giving world actually say that he could see the last second – “hey stock is on the way for a new CGA just before new year’s eve” (even WITHOUT a written contract yet) – actually work.  His reason – if the donor had done CGAs previously, a donor’s verbal announcement and transfer, coupled with the donor’s knowledge of these gifts, sounded like a “meeting of the minds.”  My advice: I would take whatever steps possible to make the donor happy and give them their 2011 CGA.  If a stock transfer is initiated in 2011, I would probably figure it out to make it a 2011 gift.  We are not talking about serious crimes here.  Just my approach.
  4. Last second CRTs – To me, there is a limit to what can be done quickly and unless the donor’s attorney is making this happen, I would recommend not guaranteeing anything to your donor.
  5. Last second Real Estate gifts – Ok, these are really hard.  What about two weeks notice?  Get the donor’s attorney involved.  I just heard that the IRS is generally fine with Single Member LLCs, charity being the single member, receiving a risky gift and limiting liability (until  you can figure out what to do with it).  LCCs are easy and quick to set up.  I would only recommend this last second approach on a clear good deal, from a clearly good/friendly donor – who has counsel taking care of it.
  6. Last second Lead Trusts – not possible.
  7. Last second direct IRA gifts – this is a tough one.  If the transfer doesn’t happen until early January, your donor might be facing income tax on the gift (with an offsetting charitable deduction as long as you give him a proper gift acknowledgement).  That result isn’t so horrible but your donor better be informed of the possibility.  Try to find out from the IRA custodian how the transfer will appear in the account of the donor.  If it can show up as a 2011 transfer, even if charity gets it in 2012, I wouldn’t be so concerned.

Please comment and ask your end of year questions!