According to the Real Estate Foundation, only 2 percent of gifts given to charities are in the form of real estate, yet 44 percent of the total U.S. net worth is real estate. Charities are reluctant to receive property as gifts because of legal complexities, so the foundation facilitates the sale of the property and gives the proceeds to the seller’s charity of choice.

“The Real Estate Foundation can accept the donation on behalf of the nonprofit, facilitate it and then transfer the proceeds to the nonprofit,” said Barry VanderKelen, vice president and treasurer of the Real Estate Foundation. “The nonprofit, in other words, is happy because it benefits from the gift and doesn’t get bogged down in the details. The donor is happy because the gift is managed professionally and the nonprofit gets the money.”

The properties that are commonly donated include rental or commercial property that has been depreciated. Rather than recapitalize or continue putting up with tenants, the property is donated.  The property’s value to the donor is increased because the gift is valued at current market price, which includes all of the capital gains built over the years of ownership. The donation may allow a large tax write-off.

“I see the foundation as a central place to donate to the organizations that have needs in our area,” said Dawna Davies, owner and broker at the Davies Company. “Although I am a SLO County enthusiast and long-time community member, my specialty is real estate, not non-profits. Donating where the need is greatest is often a challenge for me. The Foundation is positioned to make the giving easy and makes me confident that the funds are directed to real community needs.”  Davies has worked with the foundation as a professional resource.