GRANT WRITING, FUNDRAISING ISSUES, MISC.
WHAT CAN BE DONATED?

There are many possibilities for a person or business, planning to make a donation. Certainly, anything that confers a benefit to a charity is a donation. Let's look at some simple examples using real estate as a donation.

The use of a donor's property by a charity
A donor may provide his or her property for use by the charity for a temporary period. For example, the donor's land may be used in a fund-raising activity by the charity. Many individuals make their homes or buildings available for a charity to use for specific events. This is also a good way to involve your donors more intimately with your charity.

Gift of the donor's property
Of course, the most common and perhaps the most valuable gift a donor can make to a charity is to give his or her property directly to the charity.

Bargain sale to the charity
Another type of donation involves the sale of property to the charity where the donor receives less than the full fair market value of the property in return for the property.

Gift of the donor's income
Another direct transfer is the donation of the donor's income to the charity. For example, the donor may assign rent or income from the donor's property without giving the charity the property itself.

Bequests of the donor's property
If the donor executes a valid Will, his or her Will can leave property contained within the probate estate to charity. Such bequests can also include split-interest transfers where the donor's heirs will also benefit in some form by the bequest.

Split-interest transfers
This is a more sophisticated charitable planning where the donor will give up less than his or her full interest in a property.

Case Study - Split interest transfers

Problem:
Mary, a 72 years old widow, needs more retirement income. Her husband, who died 2 years ago, was a professor at the University, located right across the street from their home. Unfortunately, Mary was faced with a very difficult decision (and not one that she wanted to make). She did not have enough money to live on and was going to have to sell the home that she had lived in for 40 years and move to an apartment.

Solution:
We approached the University about a split-interest gift. They loved the house and the idea! Mary could stay in the house as long as she lived and receive an additional monthly income from the University for the rest of her life. In exchange, the University would receive the house upon her death, which also pleased Mary since the University has been an integral part of their lives. A win/win situation.

By ADO member Robby Morris, Insurance and Personal Planning, The Morris Group; (914) 273-6301; www.RobbyMorris.com or morrisrw@ft.newyorklife.com.