In recent years, real estate has appreciated substantially. If you want to make a substantial gift to charity, donating real estate may offer several benefits:
Cash-less contributions. Your bank accounts and your investment portfolio can remain intact.
Tax benefits. Assuming you’ve owned the donated property for more than a year, you can take a current income tax deduction for its fair market value.
Such charitable deductions usually are limited to 30 percent of your income. If you make a larger contribution, the excess deductions may be taken over the next five years.
Besides your writeoff, unrealized capital gains won’t be taxed if a property is given to charity.
Estate planning. Property that you donate (and any future appreciation) will be excluded from your taxable estate.
Philanthropic satisfaction. Giving real estate can enable you to make a meaningful contribution to charity you’d like to support.