Gifts of Real Property
Greater Worcester Community Foundation may accept gifts of real
property. Each situation will be evaluated and informed by the following:
- All gifts of real property to the Foundation shall be accepted only
after being evaluated for the financial, environmental, legal, or public
relations risks or liabilities associated with the gift. The level of information
required will vary depending on the nature of the property.
- The Foundation’s basic policy is to accept gifts of real property
that may be sold so that the cash may be invested and used for charitable
purposes.
- The Foundation may, in some cases, accept gifts of real property to
hold title temporarily for the purpose of transferring the property to a
qualified charitable organization for charitable use.
- The Foundation will not usually accept property with a) a value of
less than $20,000; b) existing debt in excess of 30% of the property’s
value, or c) hazardous waste problems.
- The Foundation will generally require at least the following: a) site
inspection by a Foundation representative to evaluate physical condition and needed
maintenance/repairs; b) a Phase I environmental site assessment and/or level
an audit to determine environmental compliance; c) a cost analysis and determination
of marketability; d) the deed; e) property tax bill to show assessed value;
f) association agreement, if applicable; g) lease or rental agreements,
if applicable; h) notes or mortgages, and i) a title insurance policy. The Foundation’s
legal counsel will review all documents. Expenses of legal review, title
insurance, environmental audit, etc., are charged to the sale proceeds.
- The donor should seek his/her own legal counsel to review
the terms of the donation.
- The establishment of value is the responsibility of the donor.
If the value is over $5,000, the donor needs to have a qualified appraisal
done. The Foundation will supply or sign IRS gift form 8283 as required.
- When the Foundation is involved in the sale of property, it will
list the property, at fair market value, with an experienced broker in the
area where the property is located. The Foundation may wait for a reasonable period
of time to receive an offer near the appraised value. Unless a separate
agreement is made with the donor, the Foundation has total discretion regarding when
and at what price the property will be sold. Such decisions will be made
with the knowledge and consent of the donor.
For more information about making a gift of real property
to Greater Worcester Community Foundation, please contact Ann
T. Lisi, executive director, (508) 755-0980.
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