Donation Process

The process is simple. Just fill out our online form, or call us at 800-237-8890 and one of our Donation Specialists will take the information from you. We will typically be able to schedule an inspection appointment with you at that time.

At the appointment, please have copies of the following documents available to give to our Specialist:
1. Any Deeds showing current ownership of the property
2. Any unpaid tax bills
3. Any paid tax receipts
4. A current water bill
5. Any other liens or encumbrances on the property (Mortgages, Judgments, Liens, Tax Liens, Mechanics Liens, etc, ).
6. If the donor is a Company or Corporate entity, Corporate documents authorizing the person(s) to sign on behalf of the Entity (Operating Agreement, Articles of Organization, etc).

Frequently Asked Donation Questions

What if I’m missing some of the paperwork?
When you donate the property, you are signing a Warranty Deed, guaranteeing clear title (ownership) to the Charity. In order to protect the Charity, we always close the transaction through a title company or attorney with Title Insurance. The Title Company will perform a title search, and insure the title to the property.

How long does it take to see if the charity is interested in my property?
Typically the Specialist will be able to determine if the property will make a suitable donation at the appointment. If the Specialist recommends the donation, we can complete the Donation Package paper work at that time. Please note that if there is more than one owner of the property, or the property is owned by a married couple, all parties must be present to sign the documents.

The Donation Package consists of 4 documents:
1. A Quit Claim Deed from the Donor to the Charity.
2. A Warranty Deed from the Donor to the Charity
3. A Donation Agreement
4. A Declaration and Deed of Gift

What is a suitable donation?
After the inspection the charity will decide if the property will make a suitable donation. This is a donation that the Charity is reasonably certain that it will be able to:
1. Quickly liquidate and convert the property into cash for the charity;
2. Be utilized immediately by the charity

How Long Does it take to Donate a Property?
The time we receive your initial information to transfer is typically 90 days. Other factors may substantially delay the process. Examples are: breaks in the chain of title; Potential purchasers not being able to gain access to the property; Non cooperative tenants; Liens and other clouds in the Title.

What is the liquidation period?
Upon signing the Donation Package, the you are conditionally conveying fee simple absolute title (ownership) to the property. The Charity will then holds the deeds in escrow for a maximum period of 120 days until final acceptance of the property by the charity, or a Purchase Agreement is signed by the Charity and a Buyer. If a Purchase agreement is executed by the Charity with a buyer, the Liquidation Period will be extended until the date specified in the Purchase Agreement. The liquidation period is over when the property is sold by the Charity at the closing or the 120 day period expires, which ever is later. The Liquidation Period may be extended by mutual agreement of the Donor and the Charity.

What is a Simultaneous Closing?
A Simultaneous Closing is a closing in which a Donor conveys title to the Charity, and the Charity “simultaneously” conveys title to the new buyer. The Charity uses a simultaneous closing in combination with the Liquidation Period to limit its liability.

What documents are recorded prior to the end of the Liquidation Period?
Typically the Quit Claim deed is recorded to protect the Charity’s interest in the property.

Do I still own the property during the Liquidation Period?
No. You have transferred all of your interest and rights in the property to the charity.

Can the Charity reject a property that was previously deemed a suitable donation?
Yes. Rarely, during the Liquidation Period the charity may decline the donation, even if it was previously determined to be suitable In rare cases, a property is accepted that the Charity is unable to liquidate. Reasons may include previously undisclosed or latent defects with the property, environmentally contaminated properties, or uncorrectable title issues. In this case, the entire Donation Agreement would be declared null and void, and the charity will rescind any interest in the property. If you are aware of any issue that may affect the liquidation of your donation, please disclose that to us during the initial phone call, or the initial inspection. Non-compliance may result in a later rejection of your donation.

After I donate a property, when does my financial and legal liability end?
At the end of the Liquidation Period, when the Charity resells the property.

What if the Charity still can’t sell the property after the Liquidation Period?
Typically the process takes about 90 days from the time the Donation Package is completed until final acceptance at the Simultaneous Closing. Per the Donation Agreement, the charity has a 120 day Liquidation Period to sell the property. If the Charity has not been able to secure a purchase agreement within the Liquidation Period, the Liquidation Period may be extended by mutual agreement of the Donor and the Charity.

What Costs will I have?
You will be responsible for any of your regular costs, such as taxes, maintenance, mortgage, etc, until the Charity liquidates the property. The only other costs you will incur is if you decide to pay for a Qualified Appraisal. A residential appraisal typically costs less than $300.

Do I have to maintain the property during the Liquidation Period?
Yes. You are responsible for maintaining the security, upkeep, maintenance, and any other regular costs of associated with your property until the Charity Closes the Donation Transaction.

Do I need to pay for title work?
No. The charity will pay for the Title Search, Title Work, and any Closing Costs.

When Can I claim the deduction?
You claim the deduction in the tax year the property was donated.

How Much Can I Claim?
You have 3 options:

1. You can pay for a Qualified Appraisal, and use that value for your deduction,
2. You may elect to use the tax assessed value assigned to the property by the local taxing authority. However, the IRS may contest this amount during an audit,
3. The IRS allows a Real Property donation of up to $4999 without a Qualified Appraisal.

You should discuss your tax situation with your Accountant or Tax Professional or click here for our tax section.

Can you recommend a Qualified Appraisal to me?
ABSOLUTELY NOT! Federal Collusion Laws strictly forbid this. You can find one locally in your Yellow Pages, or ask a local real estate agent or mortgage broker for a referral.

Can I make a partial donation?
Yes. Sometimes it is more beneficial to sell a property, and make a partial cash donation at the closing to the Charity. If you have questions, Please contact one of our Donation Specialists , your Accountant or Tax Professional.

Do I have to attend the closing?
No. You have already signed all the necessary documents in the Donation Package. The only exception may be if there are additional issues that are discovered in the Title Search. Even if additional documents are required, you may be able to sign them prior to the closing.

Do you Accept Vacant Land?
Sometimes. This is on a case-by-case basis.

Do you accept “environmentally contaminated” property?
Sometimes. These are on a case by case basis. Obviously the charity cannot expose itself to the liability of a serious hazard. If environmental tests have been completed (Phase I and/or “Baseline Testing) and the records are available, the donation process can be greatly accelerated.

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