For some donors, gifts of real estate may be the most convenient way to make a meaningful gift as they continue to support the work of the Columbus Jewish Foundation. There are many methods that donors may use to make gifts of their homes or other real estate – through a bequest or, more commonly, through a lifetime transfer, with significant tax benefits.
The donor may convey the real estate to the Foundation as an outright gift. The property is transferred by deed to the Columbus Jewish Foundation and subsequently sold (unless there is a special investment reason to retain it).
The donor receives an immediate income tax charitable deduction based on the appraised fair market value of the property.
Gifts of partial interest in real estate can afford the donor the opportunity to retain use of the property for a portion of each year by conveying to the Foundation a fractional interest in the property, represented by the part of the year when the property is not used.
For example, the donor may use vacation property for four months of the year. A gift of a two-thirds (2/3) interest in the property (eight months) may be made to the Columbus Jewish Foundation, generating a charitable income tax deduction equal to two-thirds of the fair market value of the property. Thereafter, the donor continues to use the property for one-third of the year, and can either devise this one-third interest to the Foundation by will or leave it to heirs.