Outright Gift of Real Estate

Transforming Realty to Gift Reality

Want to make a gift to the Montana Community Foundation without touching your bank account? Consider giving us real estate, such as a personal residence, vacation home, farm, commercial property or undeveloped land to support an endowment fund at the Montana Community Foundation. Such a generous gift helps us continue our work for years to come. And a gift of real estate also helps you. When you give the Montana Community Foundation appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction and you may minimize or eliminate capital gains tax. And you no longer have to deal with that property's maintenance costs, property taxes or insurance.

Another benefit: You don't have to hassle with selling the real estate. You can deed the property directly to MCF or ask your attorney to add a few sentences in your will or trust agreement.

Ways to Give Real Estate

You can give real estate to MCF in the following ways:

An outright gift+

When you make a gift today 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, based on charitable appraisial. This deduction lets you 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 Montana Community Foundation, you also eliminate capital gains tax on its appreciation.

See My Benefits

A gift in your will or living trust+

A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence, you can ensure that your support for charity continues after your lifetime.

A retained life estate+

Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to MCF 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 MCF would not actually 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.

See My Benefits

A deferred charitable gift annuity+

Are you tired of the hassles of maintaining your property such as paying taxes, utilities and repair bills? Consider donating the property to MCF in exchange for reliable payments for life for you (and someone else, if you choose). When you arrange a charitable gift annuity, you receive a federal income tax charitable deduction in the year you set up the gift annuity when you itemize on your taxes and Montana taxpayers can also qualify for the Montana Endowment Tax Credit. 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.

See My Benefits

A bargain sale+

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 MCF. A bargain sale can be an effective way to dispose of property that has increased in value, and it is the only gift that can give you a lump sum of cash and a charitable deduction (when you itemize) at the same time.

See My 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. You receive a federal income tax charitable deduction in the year you set up the gift and Montana taxpayers can also qualify for the Montana Endowment Tax Credit. Real estate works well with only certain variations of charitable remainder trusts.

See My Benefits

A charitable lead trust+

This gift can be a wonderful way for you to benefit MCF 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. You receive a federal income tax charitable deduction in the year you set up the gift and Montana taxpayers can also qualify for the Montana Endowment Tax Credit.

A memorial gift+

A gift of real estate may be a perfect way to honor your 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 in perpetuity.

A donor advised fund+

When you transfer real estate to your donor advised fund, you avoid capital gains taxes and you qualify for the Montana Endowment Tax Credit and a federal income tax deduction based on the fair market value of the property when you itemize your taxes.

An Example of How It Works

House with a key Janet purchased a rental property years ago and has watched it grow steadily in value. Still active in her career and traveling frequently, she's beginning to find management of the property more and more of a hassle. Janet sees this as an opportunity to give her rental property to MCF to benefit the endowment funds of several local charities that are important to her while realizing valuable tax benefits.

Janet avoids capital gains tax on the appreciation and qualifies for a federal income tax charitable deduction of $250,000, which is for the property's fair market value today. She is able to claim 30% of her $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, she can continue to use up the remaining $190,000 deduction. Janet loves knowing that the gift of her property will have a lasting impact on her favorite charities through their endowment funds at MCF.

Personal Estate Planning Kit

Our Top Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy.

Download My Kit

Next Steps

  1. Contact The Montana Community Foundation at (406) 443-8313 or info@mtcf.org to discuss the possibility of giving real estate to MCF.
  2. Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
  3. If you include MCF in your plans, please use our legal name and federal tax ID.

Legal name: Montana Community Foundation
Address: 33 S. Last Chance Gulch, Ste. 2A Helena, MT 59601
Federal tax ID number: 81-0450150

Make a Gift Today

Learn more about the many ways to use real estate to support the Montana Community Foundation. Contact us today.

Contact Us
Personal Estate Planning Kit

Our Top Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy.

Download My Kit