Ann Arbor Area Community Foundation

Gift Options: Real Estate

Donating a parcel of property can yield significant tax savings, while benefiting your local community.

Gifts of real estate can include a house or personal residence, farm, vacation home, commercial buildings, and income-producing land. 

Donors avoid capital gains tax and receive a charitable deduction of the fair market value of the real property.  

  • For real estate held less than one year, the charitable deduction is limited to the property's cost basis. 
  • For real estate held more than one year, gifts of real estate are deductible at the fair market value up to 30% of the donor's adjusted gross income in the year the gift was made - with a five year carry-forward period if required.  

Gifts of real estate may be contributed as outright gifts, as a retained life estate, as a contribution to a charitable remainder trust, or may be gifted to the Community Foundation via a bequest.

Please note that all gifts of real property must meet AAACF gift acceptance guidelines and will require certain procedural steps which may include:

  • Site visit to the property,
  • Environmental assessment,
  • Independent qualified appraisal,
  • Copy of the latest tax assessment, and
  • Determination as to whether the property has a mortgage.

Once received, the property will typically be sold unless it is to be used in connection with AAACF's tax exempt purpose.

If land preservation is the donor's key objective, gifting property to a local land trust may be a better choice.

For more information about gifts of real estate, please see AAACF's Gift Acceptance Policy.

If you have questions regarding the gifting of real property to the Community Foundation, please contact AAACF VP for Development Shelley Strickland.