BenefAction Accepts Gifts of Real Estate
BenefAction continues to expand its charitable giving platform. At its AGM in 2013, the Board of Directors approved the acceptance of gifts of real estate. In addition to the normal gifting limits (e.g. 75% of net income per annum and 5 year carry forward provision), gifts of capital property (e.g. Real Estate) get the additional benefits of having an amount added to the annual contribution limit of 75% of net income. The additional amount equals 25% of the taxable gain arising from the gift, and/or 25% of the recaptured CCA. This “bump” up in the donor’s contribution limit permits more credits being claimed in the year of the gift. Here is an example >
GUIDELINES FOR ACCEPTING AND MANAGING DONATED REAL PROPERTY
BenefAction will consider lifetime and testamentary gifts-in-kind of real property. In all cases BenefAction Foundation will only consider accepting a donation of real property provided:
• There is a concrete redemption plan in place for BenefAction (e.g. a buyer is identified in advance to whom BenefAction sells the property immediately).
• The property is valued by an independent real estate broker. Any cost incurred by BenefAction to obtain the valuation will be allocated to the proceeds of the gift.
The Foundation must elect to accept or decline a gift of real property. Due to the expenses associated with gifts of real estate, only gifts valued in excess of $100,000 will be accepted.