Transforming Ordinary Sales into Extraordinary Gifts
What is this?
The Legacy Property Fund is an innovative, no cost, tax free way to create generous gifts to charitable organizations through real estate sales transactions. Using the Legacy Property Fund, ordinary sellers are able to donate gifts of 3-5% of the sales price, amounts made available by the tax benefits of this technique.
The benefits are substantial. Selling a home using LPF turns an ordinary sale in to an extraordinary and rewarding event for the seller, enabling individuals to have a meaningful impact in an unexpected way.
Who is this for?
The Legacy Property Program may be for you if you are selling property and you want to:
- Save on taxes and increase your charitable gifts
- Ensure that you meet your personal timetable and priorities
- Support conservation efforts
- Give a meaningful gift to causes that are important to you
How this works
This technique works in much the same way as giving gifts of appreciated securities, reducing capital gains taxes and making funds available for charitable gifts. LPF gifts also provide a second tax advantage - an income tax deduction on the transaction costs associated with the sale, which can be substantial.
A Legacy Property Fund donation involves the transfer of your property when you are ready to sell, generating a tax benefit and cash for you and your favorite charities. Specific steps include:
- The seller and KCT discuss using the Legacy Property Technique
- Working with the seller, KCT creates a customized donation agreement detailing the transaction and the identifying the benefiting charities
- Property is donated to KCT at the appraised value. Seller retains a promissory note collateralized by the property (a mortgage). This creates the IRS-sanctioned “bargain sale” tax benefit.
- KCT sells the property using a mutually agreed upon realtor
- KCT distributes the sale proceeds to the seller and the designated charities
Because KCT’s mission is land conservation, a portion of each transaction is used to support one or more conservation projects. But any qualified charity can be the recipient of LPF gifts, and sellers can give to multiple organizations if they so choose.
Though little-known, this is a powerful gifting option. Millions of dollars of charitable donations have already been generated through the Legacy Property Fund benefitting more than 30 organizations. Take a look at the many organizations that have received gifts through the Legacy Property Fund to date to see the far-reaching impacts this new technique is having.
Our Regional Conservation Fund
Keystone Conservation Trust encourages directing as much as possible from the Legacy Property Fund to critical conservation projects in need. Such contributions will be invested into strategically important conservation projects in urgent need. (Conservation Projects).
The Pennypack Greenway is a wooded oasis in a highly built-out setting
at the margins of Philadelphia. Encompassing three protected areas within
both Philadelphia and Montgomery counties (the Pennypack Park, Lorimer
Park, and the Pennypack Preserve), the Pennypack watershed houses over 2600
acres of publicly accessible protected lands. Conservation challenges ...
[+] Read More
A pocket of ecological treasures, the Scotia Barrens is an exceptional
ecosystem of rare community types. Many of the wildlife species which
call the Scotia Barrens home would disappear from the region if the barrens
habitat were lost. Because of its close proximity to the growing
community of State College, ...
[+] Read More