Donating Real Estate
Using real estate to fund a gift to UNC Lineberger allows you to preserve cash assets and receive significant tax benefits.
UNC Lineberger welcomes your gifts of unencumbered real estate, which may be an outright gift or used to fund a lifetime income arrangement such as a charitable gift annuity. Real estate includes homes, condominiums, commercial businesses, residential properties and agricultural and undeveloped land. The gift can be for all of your interest in the property or an undivided fractional interest.
Why make a gift of real estate?
Some may want to simplify their lives by disposing of their real estate holdings, but an outright sale might create a large capital gains tax. An outright gift to UNC Lineberger will provide a significant charitable tax deduction and will avoid capital gains taxes.
If you choose to fund a charitable gift annuity with your appreciated property, there are also significant benefits:
- A federal tax deduction for the gift portion of the annuity;
- A portion of every annuity payment will be federal tax free, increasing the annuity payout rate; and
- The gain associated with the annuity portion can be spread out over the donor’s life expectancy rather than being recognized all in the year of the transfer.
Conditions and Process
All gifts of real estate must be approved by the University’s property committee. The first step in the process is for our office to gather as much information as possible about the property. After we have collected the needed information (examples listed below) and secured our own appraisal and an environmental assessment, a recommendation is made by the University’s Property Committee. Once the property has been accepted by the University, you can then transfer the property to Carolina. For your planning purposes, it is important to note that our due diligence process can take from one to two months to complete.