The question you should be asking isn’t why your organization should seek gifts of real estate, art and collectibles, but why not? Privately-held real estate is estimated to be worth more than $24 trillion in the United States, with one out of 25 people owning three or more properties, one in 10 own two properties.

Caroline Camougis, managing director of New York City-based Delphi Partners, explained the recent trend of real estate gifts during the recent National Conference on Planned Giving, held in Grapevine, Texas. In 2003, real estate donations in the U.S. totaled $5.9 billion, she said, and in 2006, gifts of real estate grew steadily, helping nonprofits raise large sums of money.

Real estate, art and personal property are a significant percentage of a household’s net worth. These items can be given to charity in many different ways. In addition to an outright donation, real estate can be given as part of a charitable trust, retained life estate, bargain sale or bequest.

Developing a comprehensive fundraising program for real estate, art and collectibles can help nonprofits confront looming challenges, such as, declining traditional donations, increasing the number of major and planned gifts, and finding a source to counteract volatility of the stock market.

Donors also can benefit from gifts of real estate, art and other valuables because of the potential:

• Avoiding capital gains taxes;
• Reducing income and estate taxes;
• Eliminating the burden of maintaining; and,
• Paying for property and make an asset the basis of a trust that provides income.

The Planning Giving Group of New England asked real estate donors during 2005 about their motivations behind giving. More than 60 percent said it was -- with almost equal importance -- the availability of tax deductions, the relief from owning and managing real estate or the charitable intent.

“By soliciting donations of real estate, art and personal property,” Camougis said, “nonprofits support their mission by creating a significant new charitable revenue stream.”

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