How to Donate a Time-share to a Charity Auction
The maintenance fees and other costs associated with a time-share's upkeep can create unnecessary financial strain and headaches for the owner. If you are unable to sell your time-share on your own, one solution is to donate it in a charity. As the new owner, the organization can then raise money by selling your time-share in a charity auction. Donating your time-share to charity is an efficient way to get rid of your time-share quickly, while helping a good cause.
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Things You'll Need
- Time-share contract
- Money (for any fees associated with transfer of ownership)
Instructions
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Find a charity organization such as a local church or teachers association that conducts auctions for time-shares. Contact the charity directly to start the donation procedure. Provide your contact information, the name of the resort where the property is located, and the number of bedrooms and bathrooms. Indicate whether there are any fees or loans still owed on the property. After you submit the information, the organization's broker will conduct a market analysis to determine whether your time-share can be sold at a profit.
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Sign the charity's consent form to begin the transfer of ownership process. The charity will need to request property documentation such as the original time-share contract, county deeds and any relevant affidavits in order to begin the transfer of ownership. Be prepared to pay transfer and recording fees during the process and any closing costs associated with the sale.
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Verify with the charity when the property has been liquidated and the title transferred. According to Donate For A Cause, the closing process alone takes approximately 120 days. Ask for a tax receipt that shows the selling price after the donation and new deed are processed. Consult with your accountant or the IRS website on how you can use your time-share donation as a tax write-off (see Reference section).
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Tips & Warnings
Keep in mind that the charity will consider your time-share's fair market value when assessing the property. If the market is unfavorable or if the value of your time-share has decreased significantly, the charity will most likely reject it as a donation.
Pay off any outstanding mortgage loans, liens, maintenance fees or bills associated with the time-share.
Do your research and provide substantial proof that shows the market value of your time-share. Obtain a written proposal if the fair market value is more than $5,000. You will need to present this to the IRS for a tax deduction.
