Know Your Options
Did you know that it’s possible to make a gift to Archdiocese of Chicago without touching your bank account? Consider giving us real estate. Such a generous gift helps us continue our work for years to come, and a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you get a federal income tax charitable deduction, which eliminates capital gains tax. Additionally, you are no longer responsible for keeping up with that property's maintenance costs, property taxes or insurance.
Another benefit: You can eliminate the hassle of selling the real estate. You can deed the property directly to the Archdiocese or ask your attorney to add a few sentences in your will or trust agreement.
You can give real estate to the Archdiocese in the following ways:
- An Outright Gift
When you make a gift today of real estate you have owned longer than one year, you receive a federal income tax charitable deduction equal to the property's full fair market value. The deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property, you also eliminate capital gains tax on its appreciation. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.
- A Gift in Your Will or Living Trust (Link)
A gift of real estate through your will or living trust allows the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for the Archdiocese continues after your lifetime and that your estate will benefit from a federal estate tax charitable deduction.
- A Retained Life Estate
Perhaps you like the tax advantages a gift of real estate, but you prefer to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to the Archdiocese, but also keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though the Archdiocese would not take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home's value.
- A Bargain Sale
If you want to sell us your property for less than the fair market value, “bargain sale" may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it's worth. The difference between the actual value and the sale price is considered a gift. A bargain sale can effectively dispose of property that has increased in value, and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction at the same time.
- A Charitable Remainder Unitrust (Link)
You can contribute any type of appreciated real estate you've owned for more than one year, provided it's unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only some variations of charitable remainder trusts. Your estate planning attorney can give you more details.
- A Charitable Lead Trust (Link)
This gift can be a wonderful way for you to benefit the Archdiocese and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.
- A Memorial or Endowed Gift (Link)
A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.
Martia purchased her home years ago and has watched it grow steadily in value. Still active in her career and traveling frequently, she's beginning to find home ownership more and more of a hassle. At this stage of her life, Martia has decided to move to a 55+ condominium development, where all exterior maintenance is provided and she doesn't have to worry about security issues. Martia sees this as an opportunity to give her existing house to a charity that's important to her while realizing valuable tax benefits.
Martia qualifies for a federal income tax charitable deduction of $250,000, which is for her home's fair market value today. She can claim 30 percent of her $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, she can continue to use up the remaining $190,000 deduction. Martia is happy in her new condo and loves knowing that the gift of her house will make a big difference supporting our mission.
- To discuss the possibility of giving real estate to the Archdiocese, please contact:
Elin R. Schriver, Planned Giving Relationship Manager
Archdiocese of Chicago
835 North Rush Street
Chicago, IL 60611-3020
- Seek the advice of your financial or legal advisor.
- If you make a memorial gift to the Archdiocese through your estate, please use our legal name and federal tax ID.
Legal Name: Archdiocese of Chicago or The Catholic Bishop of Chicago
Federal Tax ID Number: 36-2170826