Lake Harmony, PA OUTRIGHT GIFT
A Maryland resident purchased a ski cabin in a Pocono Mountain resort 4 hours from her home. For nearly 30 years the property was used by family, and later leased to a local resident. When the tenant vacated, the owner decided she had no desire to continue owning the townhome going forward. Faced with the task of selling, she realized she was also faced with a substantial renovation on a property well-worn throughout the years.
For 32 years, this owner had been making an annual cash donation of $25 per year to National Jewish Health, an internationally renowned Denver hospital known as a leading research and treatment center for respiratory diseases. With an opportunity to align her property circumstances to her underlying charitable intent, the owner offered the townhome as a gift of real estate to NJH.
The sale closed and NJH received a grant constituting a major gift from a loyal donor with sudden capacity to give from her assets instead of her income. As an additional benefit to NJH, this donor increased her annual cash gifts to NJH to $400 per year and has served as an example to other NJH donors of the generous outcomes that can be realized from a gift of real estate.
Punta Gorda, FL PARTIAL INTEREST
A hotel owner on Florida’s Gulf Coast was contemplating a sale of his hotel but planning to first make a 51% partial interest charitable gift of the property to his donor advised fund at Vanguard Charitable. Days prior to closing, Hurricane Ian made landfall, bringing 155 mile per hour winds to the hotel parking lot that caused significant damage to the property delaying the donation and sale concept.
More than $200,000 of repairs to the roof and building interiors were needed but substantially completed by December 2022. During the renovation period the parties kept their focus on the donation process and the search for a buyer. The partial interest donation closed in the final weeks of December and a buyer was secured shortly thereafter allowing the sale to close prior to year’s end.
This 51% partial interest gift produced more than $3,500,000 of charitable funds, all of which went to the nonprofit world. $3,475,000 was granted to a donor advised fund at Vanguard Charitable in the name of its donor.
California vinyard - partial interest
The 50% co-owners of a successful Napa Valley vineyard agreed it was time to sell their property. One of the co-owners decided to donate a 30% share of his interest to his family’s favorite social causes by first directing the gifted portion to a donor advised fund at Fidelity Charitable.
A sale contract was signed with a buyer who owned several other California vineyards. Since the sale took place in the middle of the seasonal harvest, various elements of the sale had to include the rights and obligations of the harvest in addition to appurtenances of roads and easements; water rights, wells and ponds; out buildings; fencing, etc.
Upon closing the sale, each party received its prorated share of revenue less its share of closing costs and prorations. After the respective distribution of net proceeds to each owner, nearly $800,000 was granted to the donor’s donor advised fund at Fidelity Charitable which can serve for decades as the source of grants by the donor and his family.
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