Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property can make a great gift to Northern Arizona University Foundation.
Gifts of Real Estate
Real Estate
NAU Foundation
Flowchart: Donor makes a gift of appreciated real estate to NAU Foundation.
Benefits of gifts of real estate
- Avoid paying capital gains tax on the sale of the real estate
- Receive a charitable income tax deduction based on the value of the gift
- Leave a lasting legacy to Northern Arizona University Foundation
How to make a gift of real estate
Your real property may be given to Northern Arizona University Foundation by executing or signing a deed transferring ownership. You may deed part or all of your real property to Northern Arizona University Foundation. Your gift will generally be based on the property's fair market value, which must be established by an independent appraisal.
Contact us
If you have any questions about gifts of real estate, please contact us. We would be happy to assist you and answer any questions that you have.
Additional Information
Mortgaged Property - Please contact us if the property you wish to give has existing debt or a mortgage. Indebtedness can affect your charitable tax deduction.
Difficult Property Gifts - Certain properties pose challenges. We have adopted policies to limit the acceptance of certain kinds of real estate. Please check with us before making a gift of real estate so we can explain our gift acceptance policies.
Capital Gains Tax - Check with us on the capital gains tax implications of your gift. You may also be interested in life income options.
Gifts of real estate can be made using trusts, an outright gift, or by a
provision in your will. Donate most types of real estate, such as:
undeveloped land, farms, commercial buildings, vacation homes, or your
residence.
In most cases, appreciated property that has been held longer than one-year
is subject to capital gains tax. Gifting your property to the Northern
Arizona University Foundation may eliminate some or all of your capital
gains tax, as well as providing a significant charitable deduction.
Additionally, the hassle of maintenance, property taxes, insurance, and
selling the property is alleviated.
To ensure the NAU Foundation will be able to receive and effectively
utilizes your property, contact the Office of Gift Planning at
(928) 523-2395, or email [email protected].
Ways to give real estate
You can give real estate to the NAU Foundation in the following ways:
When you make a gift of real estate you have owned longer than one year,
you qualify for a federal income tax charitable deduction equal to the
property's full fair market value. This deduction allows you to reduce the
cost of making the gift and frees cash that otherwise would have been used
to pay taxes. By donating the property to the NAU Foundation, you also
eliminate capital gains tax on its appreciation.
Transfer your personal residence or farm to the NAU Foundation but keep the
right to occupy (or rent out) the home for the rest of your life. You
continue to pay real estate taxes, maintenance fees, and insurance on the
property. The NAU Foundation would not take possession of the residence
until after your lifetime. Since your gift cannot be revoked, you qualify
for a federal income tax charitable deduction for a portion of your home's
value.
Want to sell us your property for less than the fair market value? A
"bargain sale" may be the answer. When you make a bargain sale, you sell
your property to the NAU Foundation for less than what it's worth. The
difference between the actual value and the sale price is considered a gift
to the NAU Foundation. A bargain sale can be an effective way to dispose of
property that has increased in value and is the only gift vehicle that can
give you a lump sum of cash and a charitable deduction (when you itemize)
at the same time.
