There are six primary ways to give a gift of real estate to Indiana University. Your development officer and the Real Estate and Personal Property team can help you consider the right giving option for your personal and philanthropic goals.
An outright gift
You can donate your property to the university for immediate sale.
When you donate your home, commercial property, vacation home, farmland, or other underused property to the IU Foundation, you will be eligible to receive a federal income tax deduction equal to the full fair market value of the property while
making an immediate, significant gift to IU. An outright gift can potentially eliminate capital gains tax on your property’s appreciation and alleviate the burden of upkeep or selling the property yourself.
A bargain purchase
You can allow the IU Foundation to purchase your property below its market value so the difference can become an immediate gift to the university.
A bargain purchase can empower you to benefit from your investment in your home while also supporting IU. You can allow the IU Foundation to purchase your property at a price below its market value, and the difference between the two becomes a generous gift to the university. You receive a lump sum of cash and qualify for a tax deduction simultaneously.
A retained life estate
You can donate your home to IU and continue to live there for the rest of your life.
When you donate a home, farmland, or rental property to the IU Foundation through a retained life estate, you can make an important gift now, qualify for significant tax deduction, and live in the home for as long as you choose. You’ll continue to pay the same taxes, insurance, and maintenance costs.
After your lifetime or the lifetime of a loved one, the IU Foundation will sell the property and use the proceeds to support the program you’ve chosen. A retained life estate can significantly simplify your affairs and reduce administrative expenses.
A gift that supports life income: Unitrusts and gift annuities
You can support charitable causes while securing lifetime income for yourself or your loved ones.
Use your property to fund a charitable remainder unitrust (CRUT), also known as a “Flip” CRUT, which can be set up to make lifetime payments for you or a designated beneficiary after your property is sold. You can qualify for an income tax deduction on the value of the remainder interest, eliminate capital gains tax, and reduce the cost of probate. IU will receive what remains in the trust after your lifetime.
Another approach is to donate your property in exchange for a deferred charitable gift annuity (DCGA). A gift annuity allows you to donate your property and in return, we pay you or a beneficiary a fixed amount each year for the rest of your life. A gift annuity qualifies for a federal income tax deduction and can empower you to take advantage of potential capital gains tax savings on the property’s appreciation.
An estate gift
You can designate a gift in your will or trust and maintain control of your property during your lifetime.
An estate gift allows you to leave your home or another property to the IU Foundation in your will or trust while maintaining control of the property during your lifetime, which you can change if your circumstances change. In a brief sentence or two, you can document your gift, simplify your estate administration, and ensure your support for IU.
A transfer on death deed
You can designate IU as your beneficiary to make your future affairs hassle free.
By designating the IU Foundation as the beneficiary of your property after your lifetime, you can avoid the time-consuming and costly probate process for loved ones, reduce the size of your taxable estate, and ensure that your wishes are fulfilled for charitable support to IU.
Let our Real Estate and Personal Property team help you find the right giving vehicle for your personal and philanthropic goals. Meet with Patrick and Ellen.
