During our last meeting, we discussed how Hamilton acquired 80 undeveloped acres of real property adjacent to the campus for approximately 25% of its fair market value. The part-gift, part-sale of the land that stretches from The Kirkland Glen, across a huge meadow, to Reservoir Road is worth noting again for at least three reasons:
The donor was motivated by his belief, "A College is Forever."
Real property was the contributed asset.
The donor was able to meet personal planning objectives.
All gifts, even the most carefully planned that provide the most significant benefit to the donor, are made because the donor wishes to support Hamilton. There must be donative intent for the donor to complete a contribution for which there is always a cost.
As you may be working with potential donors or speaking with friends about philanthropy, it may be an excellent time to suggest contributions of real property. Real estate values have held up well over the past three years, in part because of low interest rates.
More than any other asset, real property literally and figuratively can be broken up into smaller parts. Outright contributions are always preferred, however, donors may contribute a percentage of real property. Beyond outright contributions and the Installment Bargain Sale concept discussed at the December meeting, donors may contribute:
When discussing real estate, please keep in mind that the best options and tax benefits are associated with real property held long-term and are debt-free.
Before closing, I should note that the CARE Act of 2003 has emerged from the Senate Finance Committee. The legislation includes a number of initiatives for charitable giving including, lifetime tax-free rollovers from IRAs to charitable organizations (outright and in trust) and an income tax charitable contribution deduction for those who do not itemize.
We are available to assist potential donors contribute any type of real property in the form that is most advantageous to the donor.
Hamilton makes a number of resources available to you, including the following: