Big Gift Energy. Now’s the Time to Talk to Donors About Real Estate
Let’s be real—most nonprofits are missing out on one of the most potent and underutilized giving opportunities out there: donated real estate. We’re talking about land, rental properties, vacation homes, even primary residences.
If your fundraising strategy doesn’t include conversations about legacy gifts of real estate, it’s time to change that. Here’s why—and why now.
Two Big Tax Benefits for Donors = A Huge Win for You
Donors can avoid capital gains tax on appreciated property.
Let’s say a donor bought a property for $100,000. It’s now worth $500,000. If they sell it, they’ll pay capital gains tax on the $400,000 of appreciation—around $120,000 at an assumed 30% tax rate.
But if they donate the property directly to your organization (or a charitable trust), they skip that tax bill entirely. That’s real money they can keep in their pocket or reinvest into impact.
They get a charitable deduction for the full fair market value.
In this same example, that $500,000 donation could unlock a $165,000 tax savings for someone in a 33% tax bracket. Combine that with the $120,000 in avoided taxes and boom—$285,000 in tax benefits.
That’s real incentive to give. And guess what? That $500k donation only feels like $215k out-of-pocket.
Smart Planning Tools: Charitable Remainder Trusts (CRTs)
For donors with big assets and big hearts, you can offer even more flexibility through a Charitable Remainder Trust. These are great for real estate valued at $1M+ and come with even more perks:
- The donor gets income for life (usually 5% annually)
- They get a charitable deduction now, based on the present value of the gift
- The trust can sell the property tax-free, reinvest it and grow the assets
- When the donor passes, your organization (or multiple nonprofits) receives the remainder.
One of our clients recently worked with a donor who placed a $1M property into a CRT. They’re now receiving $50,000/year in income, got a sizable deduction this year and will leave an incredible legacy gift when they pass.That’s a triple win: for the donor, their finances and your mission.
Why Now? Think Boomers, Downsizing + Donors Ready to Make a Meaningful Mark
Here’s the truth: millions of Baby Boomers are sitting on significant real estate wealth. And many of them are:
- Downsizing or simplifying their lives
- Child-free or have adult children who are already financially independent
Single or aging without a clear estate plan - Part of the LGBTQ+ community, who may not have traditional family structures but care deeply about legacy
- Philanthropically inclined, especially as they think about the legacy they want to leave
This generation holds the majority of real estate wealth in the U.S.—and much of it has appreciated dramatically over decades. Now, as they enter a stage of life where purpose and impact matter more than ever, many are looking for ways to turn their assets into meaningful change.
They just need to know how—and that it’s possible.
That’s where you come in. Start the conversation. Give them the vision and the tools. Invite them to turn their property into something powerful—like scholarships, housing, healthcare or clean water.
Your Next Steps
If you’re not already planting seeds with donors about legacy gifts of real estate, now’s the time to start. Here’s what you can do:
- Train your staff and board to understand the basics of real estate giving
- Add it to your legacy giving materials (and your talking points)
- Work with experts—you don’t have to navigate appraisals, tax rules, or CRTs alone.
And of course, talk to us. Marquam Agency partners with nonprofits to educate, inspire and activate donors around major gifts, including real estate. We’ll help you frame the opportunity, craft the messaging and make it real.
A Quick but Important Note
We’re fundraising experts, not tax advisors—and while these giving strategies offer powerful benefits, they come with important legal and financial considerations. Always encourage donors to consult with a qualified tax professional, estate attorney or financial advisor before making a gift of real estate or setting up a charitable trust.
Every donor’s situation is unique. A trusted advisor can help them:
- Understand their tax implications at both the federal and state level (especially if they’re in Oregon or another state with different rules),
- Explore options for estate planning and charitable trusts,
- And ultimately, make a decision that aligns with their financial goals and philanthropic values.
The good news? Most donors appreciate when you proactively suggest bringing in a professional—it builds trust and reinforces that you’re looking out for their best interests.
Giving real estate is good. Giving real estate strategically is game-changing!
Let’s make legacy giving bigger, smarter, and more impactful—together.
If you’re not talking to your donors about real estate, you’re missing one of the most powerful, underutilized tools in legacy giving. Real estate gifts can be transformational—not just for your organization, but for the donors who want to make a lasting difference.
Whether it’s a primary residence, rental property, land, or commercial space, these assets can be leveraged strategically to maximize return through real estate auctions—turning property into a powerful philanthropic impact.
Curious how it works? There are resources, real-world success stories, and a rock-solid process that makes it easier than you think. From donor education to liquidation strategy—it’s all within reach.
Let’s talk about how real estate can change the game for your mission. Reach out, let’s chat!
