We’re hearing from more and more attorneys, accountants, and financial advisors that your clients are expressing interest in donating real estate. This is wonderful news for local nonprofits and great for your clients’ taxes!  

You’re certainly aware that gifts of real estate to a nonprofit — including a fund at the Omaha Community Foundation — can be extremely tax-efficient. That’s because your client is typically eligible for a charitable deduction based on the fair market value of the property. Because OCF is a nonprofit, when it sells the donated property, the proceeds will flow into the fund free from capital gains tax.  

To achieve the best tax outcome and overall charitable results, it is important to follow these steps when donating real estate: 

  • Step 1: Notify the OCF Donor Services team that your client intends to contribute real estate by emailing giving@omahafoundation.org or calling 402-342-3458.
  • Step 2: OCF will provide you with a form to fill out that includes questions about the land’s value, condition, zoning, income and other considerations. Work with your client to fill out the form as completely as possible, then return it to OCF.
  • Step 3: Obtain the following assessments of the property and provide them to OCF:
    • Phase I environmental assessment of the property.
    • Qualified appraisal valuing the property.
  • Step 4: The Community Foundation’s Gift Acceptance Committee will consider the proposed donation.
    Note: As individual gifts of real estate can differ dramatically in their composition and nature, these gifts require the approval of the Gift Acceptance Committee. As a part of the committee’s due diligence, OCF requires them to evaluate the marketability, suitability, valuation, and environmental condition of the property.
  • Step 5: OCF will notify you of the Gift Acceptance Committee’s decision. If the proposed donation is approved, OCF will work with you and your client to determine the method of title transfer.
  • Step 6: OCF will provide your client with a gift receipt that, together with the appraisal of the property, should be kept to substantiate the donation for tax purposes.

Our team can help you through the process every step of the way. We have professionals in-house to ensure your client’s real estate donation is handled efficiently and effectively, allowing them to support the charitable causes that mean the most to them.