How It Works

• The donor transfers the property to the America the Beautiful Fund.

Objectives Met

• You can eliminate the burden of maintaining a property that is no longer wanted or needed.

Donor Benefits

You can potentially:

• Receive a charitable tax deduction for the appraised value of the property.
• Avoid capital gains taxes.
• Remove property from your taxable estate.

An Example

Mrs. Miller owns a home that cost $100,000 and is now worth $300,000. When donated, Mrs. Miller gets to take a charitable tax deduction of $300,000 and avoids paying capital gains taxes. In addition, the property will not be part of her taxable estate.

How It Works

• The donor transfers the property to a Charitable Trust.
• The trustee sells the property and the proceeds are received by the Charitable Trust.
• The donor receives an income payment for a set period of time, often for the life of the donor and spouse.
• Upon the donor and spouse’s death, the trust’s assets are transferred to the organization.

Objectives Met

• You can diversify your assets and benefit from additional income.

Donor Benefits

You can potentially:

• Receive income on an ongoing basis.
• Receive a charitable tax deduction for a portion of the property’s value.
• Avoid some capital gains taxes.
• Remove property from your taxable estate.

An Example

There are many different types of Charitable Trusts. In this example, a Charitable Remainder Trust is outlined.
Mr. Stevenson donates a 50-acre parcel of land which the trustee of the Charitable Remainder Trust sells for $500,000. The proceeds are received and invested by the Charitable Remainder Trust. Mr. Stevenson and his spouse receive payments for an agreed upon period of 20 years. Any proceeds remaining at the end of the 20 years are transferred to the organization.

How It Works

• The donor transfers ownership of the property to the America the Beautiful Fund, but retains the right to live in the property for a specified period of time – often for the life of the donor and spouse.

Objectives Met

• You and your spouse can continue to live in the donated property for life.

Donor Benefits

You can potentially:

• Receive a charitable tax deduction for a portion of the property’s value.
• Avoid some capital gains taxes.
• Remove property from your taxable estate.

An Example

Mrs. Martin donates her home to the America the Beautiful Fund, but continues to live in it. She receives a charitable tax deduction and avoids some capital gains taxes. On her death, the America the Beautiful Fund sells the home. The property has been taken out of her taxable estate, thus reducing inheritance taxes for Mrs. Martin’s heirs.

How It Works

• Donor sells the property to the America the Beautiful Fund for less than appraised or fair-market value, often for the cost of an outstanding mortgage.

Objectives Met

• You can eliminate the burden of loan payments, taxes and other maintenance.

Donor Benefits

You can potentially:

• Receive a charitable tax deduction based on the difference between the Bargain Sale price and the appraised value.
• Avoid some capital gains taxes.
• Remove property from your taxable estate.

An Example

Mrs. Rogers sells a multi-family home to America the Beautiful Fund for $180,000 – the price she paid for it years ago.  At the time of her gift, the property is worth $400,000. Her charitable contribution is $220,000 – the difference between the current value and the sale price. Her capital gains taxes are reduced and she receives a $220,000 charitable tax deduction.

How It Works

• The donor bequeaths the property to the America the Beautiful Fund in his or her will.

Objectives Met

• You and your spouse can enjoy the property for life.

 Donor Benefits

• Your estate can receive the benefit of a charitable tax deduction.

An Example

Mr. Stone bequeaths his rare book collection to America the Beautiful Fund. Upon his death, the collection is given to the organization, which sells the books and uses the proceeds as he directed.