The Benefits of Donating Land to Charity

Maximize Your Impact – One of the main reasons you should donate your land to charity is because it allows you to maximize the impact your gift has. The entire point of contributing to charities and nonprofit organizations is to help them fulfill their missions and continue to carry out their crucial work.

Charities always need monetary contributions in order to carry out their work, but certain nonprofit organizations can benefit from land donations even more. This is because the land can be used by the organization as part of its operations, or it can be sold by the organization for more money than if you had sold it yourself and given the organization the proceeds, this being due to the potential elimination of capital gains tax.

Capital gains tax is incurred when an individual’s non-cash assets—like stocks, bonds, and real estate—have appreciated (gained value) and are then sold. The amount of tax that must be paid depends on how much the asset appreciated during the time you owned it, and can be as high as 20%. So, if you sell your land and then donate the proceeds to a nonprofit organization, you may be giving them up to 20% less value than if you had just donated the land directly.

By donating the land directly, the organization can either keep it for its operations or sell it for its full value, which can support their work even more. For more information regarding non-cash donations, visit the Internal Revenue Service’s (IRS) website.

Leave a Lasting Legacy – You should also consider donating land to charity as a way of leaving a lasting legacy for both you and your family. If you want the land you donate to remain the way it is, one of the best options is to donate it to an organization that will ensure just that. Whether the organization intends to sell the land or keep it is something you’ll want to discuss before you decide to move forward with your gift.

Charities that plan to keep and use your property ensure that the land will be utilized for good, and can guarantee that there won’t be any unwanted development on it. This is especially important if the land is near conservation areas or contains environmentally sensitive sections that need to be protected.

Giving land can also benefit the communities you care for, as it provides space for many different possibilities, like recreation, education, aesthetics, and more. As long as the nonprofit organization maintains ownership of the land, it can remain a place for members of the community to enjoy and come together. This means that your land donation doesn’t just help the charity you are supporting, but also the overall community in the area you love.