Transforming Realty into Gift Reality
View Our Complimentary BrochureLearn more about the many ways you can make a gift of real estate to support American University in the complimentary guide Seven Ways to Donate Real Estate.
Want to make an impactful donation to American University without touching your bank account? Consider a gift of real estate. Such a generous gift helps AU continue to offer an outstanding education to students for generations to come. And a gift of real estate also helps you. When you donate appreciated property that you have held longer than one year you receive a federal income tax charitable deduction, you avoid paying capital gains tax, and you no longer have to pay for that property's maintenance costs, property taxes, or insurance.
Another benefit: you don't have to worry about navigating the process of selling the property. You can deed the property directly to American University, or ask your attorney to add a few sentences in your will or trust agreement naming AU as the beneficiary.
Ways to Give Real Estate
You can donate real estate to American University in any of the following ways:
Submit a few details to see the benefits of an outright gift.
An outright gift. When you make a gift today of real estate you have owned for longer than one year, you obtain a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees up cash that otherwise would have been used to pay taxes. By donating the property to American University, you also eliminate capital gains tax on its appreciation. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.
A GIFT IN YOUR WILL OR LIVING TRUST. A gift of real estate through your will or living trust provides you with the flexibility to change your mind and the opportunity to support American University with a larger gift than you might otherwise be able to make during your lifetime. In as little as one or two sentences, you can ensure that your support for AU continues after your lifetime, and that your estate will benefit from a federal estate tax charitable deduction.
Submit a few details to see the benefits of a gift of retained life estate.
A retained life estate. Perhaps the tax advantages that a gift of real estate to American University would offer appeal to you, but you want to continue living in or renting out your personal residence. You can transfer your personal residence or farm to AU but keep the right to occupy the home for the rest of your life. You continue to pay real estate taxes, maintenance fees, and insurance on the property. Even though the university would not actually take possession of the residence until after your lifetime, you receive an immediate federal income tax charitable deduction for a portion of your home's value. This type of gift cannot be revoked.
Submit a few details to see the benefits of a deferred charitable gift annuity.
A CHARITABLE GIFT ANNUITY OR DEFERRED GIFT ANNUITY. Are you tired of the hassles that come with maintaining your property, such as paying taxes, utilities and repair bills? Consider donating the property to American University in exchange for reliable payments for life for you (and someone else, if you so choose). When you establish a charitable gift annuity, you are allowed a federal income tax charitable deduction in the year that you set up the gift annuity. If you use appreciated real estate to make the 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.
Submit a few details to see the benefits of a bargain sale.
A bargain sale. With a "bargain sale" you sell your property to American University for less than what it's worth. The difference between the actual value and the sale price is considered a gift to AU. A bargain sale can be an effective way to part with property that has increased in value, and it is the only gift vehicle that can provide you with a lump sum of cash and a charitable deduction at the same time.
Submit a few details to see the benefits of a charitable remainder unitrust.
A charitable remainder unitrust. You can contribute any type of appreciated real estate that you have 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. Real estate works well with only certain types of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.
A charitable lead trust. This gift can be a wonderful way for you to both support American University and 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.
A tribute or endowed gift. A gift of real estate may be a perfect way to honor your loved one. When you make an endowed gift of real estate, your contribution is invested with and becomes part of American University's endowment. An annual distribution is made for the purposes that you designate. Because the principal remains intact, the fund will generate support.
A donor advised fund. When you transfer real estate to your donor advised fund, you avoid capital gains taxes and receive a federal income tax deduction based on the fair market value of the property.
- Contact Seth Speyer, Executive Director of Planned Giving at 202-885-3411 or firstname.lastname@example.org to discuss how a gift of real estate could make a difference at American University.
- Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
- If you include AU in your plans, please use our legal name and Federal Tax ID.
Legal Name: American University
Address: 4400 Massachusetts Avenue, NW, Washington, DC 20016
Federal Tax ID Number: #53-0196549
Not Sure How to Get Started?Download our complimentary Personal Estate Planning Kit