The Community Foundation’s Board of Trustees has created a new legal entity — The Community Foundation Trust — to accept gifts of real estate.
The Community Foundation has always been able to accept real estate from its donors, but now the Community Foundation Trust is designed specifically for holding and liquidating real estate. This new entity is governed by the same Board of Trustees that governs the Community Foundation of Northern Colorado.
“From the donor’s perspective, this new vehicle simply means that we will be in better position to quickly and easily accommodate real estate gifts or gifts of other special assets,” said Ray Caraway, president of the Foundation.
A gift of real estate to the Community Foundation Trust results in an immediate tax deduction for full market value. The tax deduction occurs regardless of when or if the property is liquidated. The property can be held for a period of time or liquidated as soon as possible. Cash from the liquidation of the property can be placed in a Donor Advised fund, providing the donors with a charitable vehicle with many of the same tax benefits as their own private foundation. Donor Advised funds allow donors to make grants to any nonprofit agency, school, university or church anywhere in the United States with greater tax benefits than a private foundation. Real estate gifts are also an excellent way to fund a Charitable Remainder Trust that provides lifetime income to the donor.
Special thanks to attorney and former Board of Trustees member, Eric Peterson, for assisting with the legal matters involved in this effort. If you, a client, or a friend have an interest in exploring a gift of real estate, contact Ella Fahrlander at (970) 488-1980.