Donating real estate to charity means giving a home, rental, or piece of land directly to a cause, which often lets you skip the capital gains tax you would owe by selling it first. For many Catholic families across the Valley, property is their largest asset and their most overlooked gift. The Catholic Community Foundation can accept these gifts, and property is one of the most powerful ways to fund a gift.
Why Give Real Estate Instead of Cash?
The Tax You Skip by Giving Property Directly
Sell an appreciated property first and you owe capital gains tax, then you donate what is left. Give the property directly and that tax step disappears. The IRS lets donors generally deduct the fair market value of long-term appreciated property given to a qualified charity. So more of your gift reaches the parishes and schools of the Diocese of Phoenix, and less goes to the tax bill. Picture a Scottsdale rental held for thirty years. The savings can be large.
What Real Estate the Foundation Can Accept
The Catholic Community Foundation can accept land, buildings, and other physical property. Common gifts include:
- A paid-off primary home
- A second home or vacation property, even a cabin in the Verde Valley
- Rental or investment property
- Undeveloped land
- Commercial buildings
Every property is different. Always talk with your own advisor first, then let the Foundation's team handle the rest.
How Does a Real Estate Gift Actually Work?
Three Common Ways to Give Property
Most real estate gifts take one of three forms. An outright gift means you deed the property to the Foundation, which sells it and directs the proceeds to the causes you choose. A retained life estate is an arrangement where you donate your home now but keep the right to live in it for the rest of your life. A bargain sale means you sell the property to the charity below market value and give away the difference. You choose the path. The Foundation's estate planning team coordinates the appraisal, paperwork, and records so a Mesa family does not have to.
Turning One Property Into Lasting Support
The proceeds do not have to be spent all at once. You can direct them into a donor-advised fund and recommend grants over time, or into an endowment where the principal stays invested and only the earnings are given out each year. One gift keeps giving. A single Glendale duplex could support a Catholic school for generations. That is what a lasting legacy looks like.
Giving That Reflects Your Catholic Values
Where Your Gift Is Invested Matters
Where your gift lands matters, and so does where it is invested. Unlike many secular options in the West Valley, the Catholic Community Foundation invests in alignment with Catholic moral teaching, following the socially responsible investment guidelines of the United States Conference of Catholic Bishops. Roughly 99% of holdings are screened to Catholic values. Faith guides every dollar.
Rooted in the Diocese of Phoenix
A property gift can support the parishes, schools, and ministries served by the Roman Catholic Diocese of Phoenix, from Flagstaff down to the East Valley. The Catholic Community Foundation has managed charitable funds since 1983 and holds more than $130 million in assets under management. Trust is earned. Four decades of stewardship shows how.
Frequently Asked Questions
Q: Do I need an appraisal to donate real estate? A: Yes, the IRS requires a qualified appraisal for most non-cash property gifts valued above $5,000, and the Foundation can help you arrange one.
Q: What if I want to keep living in my home? A: A retained life estate lets you give your home while keeping the right to live there for the rest of your life.
Q: Can I give property that still has a mortgage? A: A mortgaged property can sometimes be given, though it adds tax complexity, so your advisor and the Foundation should review it first.
Give With Purpose
Your property can do more good than you might expect, and often at a lower tax cost. Whether you want to support one ministry or build a legacy that lasts, a real estate gift turns careful planning into lasting good. When you are ready to look at your options, the Catholic Community Foundation's gift planning team is here to guide you. Reach out through our contact page or call us at 480-651-8800.