How to Donate Your Home to Charity
Most people are aware of the fact that charitable organizations not only accept donations, but are in great need of donations. Most know that charities accept monetary, clothing and food donations, but many are not aware that a variety of charities also accept car, boat and home donations. There are different ways to donate your house, but whichever way you choose to donate, you will receive a tax deduction for your contribution to charity.
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Instructions
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Donate Your Home Outright
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Contact a charity in your city that accepts home donations, such as Real Estate with Causes and House Donations. You can also research other charities on charitynavigator.com.
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Submit a home donation form to the charity of your choice. You can find these forms on charity websites or at the charity's office. Provide your name and contact information and a description of the home you wish to donate.
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Speak with the representatives of the chosen charities when you are contacted after submitting your donation application. Many charities are picky about the real estate they'll accept and will want to speak with you.
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Sign over the title of your home to the charity. Your home will be appraised, and you will receive tax information from the charity in the mail once your donation is complete. You can deduct the fair market value of the property on your income tax returns.
Charitable Remainder Trusts
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Contact your estate planner or attorney.
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Speak with your estate planner/attorney about setting up your will so that your home will go to charity once you pass on. This is called a Charitable Remainder Trust, in which 10 percent of the current value of your home is given to the charity of your choice, you are paid a monthly dividend and you get to live in your home for the remainder of your life. Ownership passes to the charity upon your death.
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Fill out and sign the paperwork drawn up by your estate planner/attorney regarding your Charitable Remainder Trust. Your home, while still yours, will belong to your chosen charity and you still get to take the tax deduction on your next income tax return.
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References
Resources
- Photo Credit house image by Byron Moore from Fotolia.com
