Overview:

Most charities will not accept donations of real estate because of the liability and complexity of managing property, lack of immediate liquidity, and the need to screen properties for risk such as liens, code violations, hidden property condition defects, title problems, environmental issues, etc.

Zetabid manages a full service charity real estate donation platform (used by Make A Wish, Disabled American Veterans -DAV.org,, Catholic Charities USA, NPR Radio, and hundreds more) to open the doors of real estate donation of all property types (with or without mortgage debt) and provide donors with the maximum tax deduction.  We shield the charity from the liability of ownership and provides instant cash liquidity to the charity.  Zetabid works on behalf of many charities and can designated the proceeds to your favorite one.

For simple donation transactions the following process is followed.  With luxury homes or commercial real estate we typically deploy our IRS Section 170 Program (click here)

 

 

 

 

 

 

 

 

 

 

 

 

 

Detailed Steps:

 

  1.  Property owners submit an asset for consideration including the basic property information, current loan amount and brief description. See form below
  2. After initial screening, donor receives a formal proposal outlining the donation terms (closing date, process timeline, and any cash to donor/seller at closing (donors do not have to donate 100% of their equity)
  3. Property owners sign a donation contract using our central charity 501(c)3 as purchaser (with desired charity recipient receiving the net proceeds with a closing in 30 to 60 days (land/homes 30 days, commercial property 60-90 days)
  4. Property marketed using a bid deadline (sealed bid) or online auction format to solicit highest and best offers from market buyers.  The nonprofit realizes its donation upon the quick resale.
  5. Auction buyer closes in 15 to 45 days depending on the value and property type.  Closing is concurrent (double closing) with donor deeding the property to the charity and the charity deeding to the auction buyer same day.
  6. All closing costs for donor (and cash to pay for donor appraisal paid by the nonprofit
  7. Upon sale, charity files IRS Form 8282 with the IRS (required when donated property sold within 3 years).
  8. Donor obtains a qualified appraisal to establish the tax deduction either up to 60 days before donation/closing date or up to due date of next tax return (Note the deduction of more than $5,000 requires donor to obtain a qualified appraisal, and attach to return if greater than $500,000).  Donor receives cash at closing to cover cost.
  9. Charity signs IRS Form 8283 (donor’s appraisal statement setting the donation amount).
  10. Charity receives the net proceeds from the sale as shown on the closing statement.

 

Charity Selection:

Donor may select from our partner charities or chose their own favorite nonprofit to receive the cash proceeds.  We also provide for donations to be split between two or more charities.  For a list of our partner nonprofits you can use our search tool

Get Started-Submit a Property for Consideration

 

 

 

Link to Sophisticated 3rd Party Real Estate Donation Overview

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