Gifts of Real Estate and Tangible Property
Real estate and personal property are often overlooked as a charitable gift but could be a great way to support your favourite cause.
Examples of Gifts of Real Estate and Tangible Property
- Real estate: Houses, cottages, commercial buildings
- Personal property: jewelry, antiques, art, vehicles, collections
- Principal residence: an official donation receipt is given for the fair market value, which offsets other taxes on your estate. There is no tax levied on the principal residence itself.
- Cottage or other real estate: The Canada Revenue Agency levies tax on the capital gain of all other real estate assets. A charitable tax receipt can help offset the tax on the gain as well as other taxes in your estate.
How Does Making a Gift of Property Benefit You?
By giving a gift of property, you create a lasting legacy that shows your generosity and support of Habitat for Humanity.
It provides you with an opportunity to fulfill dreams of making a larger contribution that is normally not possible during one’s lifetime — an achievement for you and your loved ones to be proud of.
It allows you to give from possessions you don’t need, normally without changing your income or lifestyle. You might not have liquid assets to fund a substantial legacy gift, but may have considerable holdings in your property. The property can be immediately donated, making for a much larger gift that could be funded out of current cash flow or cash assets.
You will receive a donation receipt for the resale value of the property, as decided by a qualified professional appraisal. If the gift is your home, any increase in value since you purchased it will not be taxed but you will receive a donation receipt for the full fair market of the property.
What are my next steps?
- Contact Habitat for Humanity Sault Ste. Marie & Area to confirm that our charity accepts this type of property as a gift.
- Sign and deliver to us a deed transferring the property to Habitat for Humanity Sault Ste. Marie & Area
- Habitat for Humanity Sault Ste. Marie & Area as required by our policies, will review the offer of the gift and decide if it wishes to accept it and will start the valuation process.
- As part of our decision-making about the gift, Habitat for Humanity Sault Ste. Marie & Area might undertake appropriate searches and investigations, especially in the case if real estate; regarding ownership, mortgages, encumbrances, title restrictions and environmental liability.
- After the formal completion of the property transfer and the property appraisal, you will receive an official donation receipt for the fair market value.
We are here to help
Should you decide to make a gift of real estate or tangible property to Habitat for Humanity Sault Ste. Marie & Area please contact us for further discussion. Your gift intention will be held in strictest confidence.
The correct legal name to include is:
Habitat for Humanity Sault Ste. Marie & Area
111 Elgin Street, Suite 303
Sault Ste. Marie, Ontario
Charitable Registration # 865217756RR0001
For More Information:
Contact Chelsey Foucher at (705) 575-0020 ext. 224 or firstname.lastname@example.org to discuss your particular situation and ask any questions you may have about supporting us with a gift of real estate or tangible property.
Let’s work together to ensure your legacy lives on.
This information and material is intended to provide general examples and reference tools for understating the way in which charitable gifts may be made to Habitat for Humanity and is for illustration purposes only. Habitat for Humanity does not give legal or financial advice.
Habitat for Humanity strongly recommends donors review this information and material and consult with independent legal, financial and/or tax advisors. This will ensure you receive appropriate legal advice, your financial goals are considered, your tax situation reviewed and your legacy gift is otherwise tailored to your personal circumstances.
Habitat for Humanity protects the privacy of all of the information that you share with us. The personal information that you provide to Habitat for Humanity will be used to provide tax receipts, to contact you regarding your gift, and to keep you informed of other Habitat for Humanity events. Habitat for Humanity maintains a strict policy of honouring donor privacy. Under no circumstances will Habitat for Humanity share, trade, or sell any of our donor information.
*Updated Oct. 21, 2020