Your peace of mind by guaranteeing our future
Real Estate is a way to make a transformational gift to The Scholarship Fund for Inner-City Children but still retain your savings. It is a meaningful gift that allows The Scholarship Fund to continue our mission for years to come. And a gift of real estate can also be a great benefit to you.
When you give us appreciated property you have held longer than one year, you get a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property’s maintenance costs, property taxes or insurance. As well, by deeding the property directly to The Scholarship Fund for Inner-City Children you will no longer have to worry about the stress associated with selling it.
Ways to gift real estate to The Scholarship Fund for Inner-City Children
You can give real estate to The Scholarship Fund for Inner-City Children in the following ways:
- An outright gift – When you make a gift today of real estate you have owned longer than one year, you obtain a federal income tax charitable deduction equal to the property’s full fair market value. This deduction lets you reduce the cost of making the gift and frees up cash that otherwise would have been used to pay taxes. By donating the property to The Scholarship Fund for Inner-City Children, you also eliminate capital gains tax on its appreciation. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.
- A gift in your will or living trust – A gift of real estate through your will or living trust allows you make a more impactful gift to the The Scholarship Fund for Inner-City Children –than you could during your lifetime, but also affords you the flexibility to change your mind at any time. Furthermore, your estate will benefit from a federal estate tax charitable deduction.
- A retained life estate – Through a retained life estate, you can support The Scholarship Fund for Inner-City Children and receive the tax advantages, but you also continue living in your personal residence for your lifetime.
You can transfer your personal residence or farm to The Scholarship Fund for Inner-City Children 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. Even though we would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home’s value. It also allows The Scholarship Fund for Inner-City Children to publically celebrate your gift –which ultimately inspires others.
- A deferred charitable gift annuity– A deferred charitable gift annuity provides many benefits. It eliminates the hassles of maintaining your property such as paying taxes, utilities and repairs. It allows you to donate the property to The Scholarship Fund for Inner-City Children in exchange for reliable payments for life for you (and someone else, if you choose).
When you arrange a charitable gift annuity, you are allowed a federal income tax charitable deduction in the year you set up the gift annuity when you or your financial advisor itemize your taxes. If you use appreciated real estate to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. A gift of unmortgaged property to fund a deferred gift annuity is preferable and generates the greatest tax benefit.
- A bargain sale– A bargain sale can be an effective way to move property that has increased in value, provide you with a lump sum of cash and a charitable deduction at the same time. When you make a bargain sale, you sell your property to our organization for less than what it’s worth. The difference between the actual value and the sale price is considered a gift to us therefore affording you tax benefits.
- A charitable remainder unitrust– You can contribute any type of appreciated real estate you’ve owned for more than one year, provided it’s unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney can give you more details.
- A charitable lead trust– This gift can be a wonderful way for you to support The Scholarship Fund for Inner-City Children and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.
- A memorial or endowed gift– A gift of real estate may be a perfect way to honor a loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support The Scholarship Fund for Inner-City Children in perpetuity.
- A donor advised fund– You may set up a fund at The Scholarship Fund for Inner-City Children based on a criteria most important to you. It can established in your family’s name, the name of a loved one, or a litany of other meaningful options. When you transfer real estate to your donor advised fund, you avoid capital gains taxes and receive a federal income tax deduction based on the fair market value of the property.
For additional information on ways to gift real estate to The Scholarship Fund for Inner-City Children, please contact SFIC at 973-497-4279.
If you name The Scholarship Fund for Inner-City Children in your plans, please use our legal name and federal tax ID.
Legal Name: The Scholarship Fund for Inner-City Children
Address: 171 Clifton Avenue, PO Box 9500 Newark, NJ 07104-0500
Federal Tax ID Number: 51-0546401