{"id":97273,"date":"2023-08-04T05:00:00","date_gmt":"2023-08-04T09:00:00","guid":{"rendered":"https:\/\/bloomerang2dev.wpengine.com\/?p=97273"},"modified":"2025-10-02T09:26:12","modified_gmt":"2025-10-02T13:26:12","slug":"ask-an-expert-how-to-accept-real-estate-gifts-if-youve-never-done-so-before","status":"publish","type":"post","link":"https:\/\/bloomerang.com\/blog\/ask-an-expert-how-to-accept-real-estate-gifts-if-youve-never-done-so-before\/","title":{"rendered":"[ASK AN EXPERT] How To Accept Real Estate Gifts If You\u2019ve Never Done So Before"},"content":{"rendered":"<p><strong>Our\u00a0<a href=\"https:\/\/bloomerang.com\/blog\/category\/ask-an-expert\/\">Ask An Expert<\/a>\u00a0series features real questions answered by\u00a0<a href=\"https:\/\/bloomerang.com\/blog\/claire-axelrad-jd-cfre-joins-the-bloomerang-team-as-fundraising-coach\/\">Claire Axelrad, J.D., CFRE, our very own Fundraising Coach<\/a>, also known as Charity Clairity.\u00a0<\/strong><b>Today\u2019s question comes from a nonprofit employee who wants advice on how to accept a real estate gift for the first time:<\/b><\/p>\n<blockquote><p><i>Dear Charity Clairity,<\/i><\/p>\n<p><i>We have a board member who wants to donate a gift of real estate. My boss wants me to \u201cmake it happen.\u201d We\u2019ve never done this before. I\u2019m worried about getting in over my head and exposing the charity to risk. Help!<\/i><\/p>\n<p><i>&#8212; Want to Say No<\/i><\/p><\/blockquote>\n<p><i>Dear Want to Say No,<\/i><\/p>\n<p><strong>There are two principles at play here, and you\u2019re wise to recognize them:<\/strong><\/p>\n<ol>\n<li>The value of being donor-centric, and<\/li>\n<li>The value of conducting due diligence to protect your charity and the donor.<\/li>\n<\/ol>\n<p>Your boss is concerned with making your board member happy. This is laudable, and I would never suggest saying \u201cno\u201d to a board member or other donor without exploring your options. Gifts of real estate can be a definite win\/win, with your charity reaping financial rewards and the donor accomplishing personal, financial, and tax-planning objectives.<\/p>\n<p>Whether or not this is a gift you can \u201cmake happen\u201d depends on a number of variables. Since this is a \u201chot\u201d prospect, my best advice is to seek out someone experienced to help you with this particular gift. It&#8217;s well worth developing a relationship with an expert you can call on, especially for complex gifts that require some finesse. The amount you pay will still be much less than the amount you\u2019ll receive. So \u201cwe can\u2019t afford this\u201d is nonsensical. Options include:<\/p>\n<ul>\n<li><b>Find a local attorney experienced in nonprofit charitable gift planning<\/b>. If you have a local law firm that specializes in nonprofit law, this is a place to start. If not, contact estate planning and real estate firms to see if they handle this type of transaction.<\/li>\n<li><b>Find a national attorney experienced in nonprofit charitable gift planning. <\/b>If you can\u2019t find someone local, there are a range of law firms with this specialty. Search the internet or get recommendations from other charities you respect. If these practitioners are not able to help you directly, they may be able to recommend someone who will. Maybe even someone local about who you were unaware!<\/li>\n<li><b>Find a local community foundation willing to take on the work for a small fee.<\/b> If you are <a href=\"https:\/\/bloomerang.com\/results\/cause\/faith-based\/\">faith-based<\/a>, this is something your local Jewish Community Federation or Archdiocese may be willing to help with as well.<\/li>\n<li><b>Find a donor advised fund manager that accepts real estate gifts<\/b> (most of the big ones, e.g., <a href=\"https:\/\/www.nptrust.org\/wp-content\/uploads\/2022\/08\/Real-Estate-Contribution-Guidelines-NPT.pdf%20%20\" target=\"_blank\" rel=\"noopener\">National Philanthropic Trust<\/a>, <a href=\"https:\/\/www.schwabcharitable.org\/non-cash-assets\/real-estate\" target=\"_blank\" rel=\"noopener\">Schwab<\/a>, <a href=\"https:\/\/www.vanguardcharitable.org\/giving-with-vc\/how-it-works\/contributions\/complex-assets\" target=\"_blank\" rel=\"noopener\">Vanguard<\/a>, <a href=\"https:\/\/www.fidelitycharitable.org\/content\/dam\/fc-public\/docs\/advisors\/fund-your-charitable-giving-from-unexpected-sources.pdf\" target=\"_blank\" rel=\"noopener\">Fidelity<\/a>, do). Then suggest to the donor they may want to set up a DAF and recommend all or a portion of the real estate\u2019s appraised fair market value on the contribution date be directed to your charity.<\/li>\n<\/ul>\n<h3>Moving forward, here are some steps to take to put in place a plan \u2013 with guidelines \u2013 to accept non-cash gifts.<\/h3>\n<ol>\n<li><b>Develop a <a href=\"https:\/\/bloomerang.com\/template\/gift-acceptance-policy-template\/\">gift acceptance policy<\/a>.<\/b> One of the best templates out there is one developed by <a href=\"https:\/\/www.linkedin.com\/in\/kathryn-miree-1691b218\" target=\"_blank\" rel=\"noopener\">Kathleen Miree<\/a>. Borrow it, adapt it for your organization, and run it by the appropriate board committee and\/or subcommittee(s) (e.g., Finance, Investment, Development, Endowment). Once approved, the guidelines should be forwarded to the full board to vote on their acceptance. Such a policy is a godsend for staff because you can now say \u201cI\u2019m sorry, our policy prohibits us from accepting gifts of property sitting on toxic waste sites.\u201d Or \u201cI\u2019m sorry, our policy prohibits us from accepting gifts of encumbered property.\u201d<\/li>\n<li><b>Put together an expert advisory committee.<\/b> Include professionals who specialize in charitable gift planning, law, accounting, and real estate. Besides giving you individuals to call on for complex gifts, you can also run the question of whether to move forward with any particular transaction by your entire committee \u2013 removing the onus of responsibility from just you or your boss.<\/li>\n<\/ol>\n<p>I once had a boss exactly like yours, and together we wanted to ultimately become the most welcoming place on the planet when it came to accepting non-cash assets. I also knew I needed help. So, I began by talking to some of my local fundraising colleagues experienced with <a href=\"https:\/\/bloomerang.com\/blog\/your-donor-population-is-aging-13-tips-to-engage-older-donors-encourage-planned-giving\/\">planned giving<\/a>. I started with someone who worked at a nearby university, where they happened to have a complete real estate division. I learned all about environmental impact reports, title insurance, carrying costs, and more, and was able to report back to my boss so we all knew what was involved. Simultaneously, I hired a nonprofit attorney to help guide me through the <a href=\"https:\/\/bloomerang.com\/blog\/how-to-create-nonprofit-gift-acceptance-policies\/\">gift acceptance process<\/a>.<\/p>\n<p>We definitely said no to some gifts, like the abandoned gas station sitting on a toxic waste lot. But we also said yes!<\/p>\n<p>Once you\u2019ve got your team together, you\u2019ll find the process pretty straightforward. It\u2019s definitely a lot of work, but the rewards justify the investment.<\/p>\n<p>Maybe a decade hence you\u2019ll be happy to say \u201cYes, let\u2019s look into this! We do this all the time.\u201d<\/p>\n<p><i>&#8212; Charity Clairity<\/i><\/p>\n<p><a href=\"https:\/\/bloomerang.formstack.com\/forms\/ask_an_expert\"><img decoding=\"async\" class=\"size-full wp-image-85889 aligncenter\" src=\"https:\/\/bloomerang.com\/wp-content\/uploads\/2023\/07\/Ask-an-expert-cta.png\" alt=\"ask an expert\" width=\"785\" height=\"150\" \/><\/a><\/p>\n<p><em>Please use a pseudonym, like &#8220;Want to Say No&#8221; did, if you prefer to be anonymous.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our\u00a0Ask An Expert\u00a0series features real questions answered by\u00a0Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity.\u00a0Today\u2019s question comes from a nonprofit employee who wants advice on how to accept a real estate gift for the first time: Dear Charity Clairity, We have a board member who wants to donate a [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":141685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1],"tags":[],"cause":[],"article_author":[],"webinar_host":[],"topic":[393,344],"class_list":["post-97273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","topic-ask-an-expert","topic-fundraising-general"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - 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