Real estate donation is a more involved transaction than most donation types, but the process follows a well-established sequence. Here's what to expect from the first phone call through the completed transfer.
The timeline for a straightforward residential donation is typically 60–120 days. Commercial properties, properties with title complications, or properties requiring environmental cleanup can take longer.
Step 1: Initial Inquiry
The process starts with basic information about the property:
- Property address and type (residence, vacation home, land, commercial)
- Approximate current market value
- Whether there's a mortgage or other debt against the property
- Current condition and occupancy status
- Your goals for the donation (outright gift, retained life estate, bargain sale)
Submit the property donation inquiry form to start. A real estate coordinator will review the situation and either confirm the property is a good fit or explain any concerns.
Not every property can be accepted, and the earliest possible screening protects both parties. Properties with unresolvable title issues, severe environmental problems, or debt substantially exceeding value are generally declined at this stage.
Step 2: Preliminary Due Diligence
For properties that pass the initial screen, the charity conducts preliminary due diligence:
- Title search to confirm clear ownership and identify any liens, easements, or restrictions
- Preliminary value estimate based on recent comparable sales
- Property condition review — for residences, sometimes a walk-through; for commercial or land, review of surveys and public records
- Environmental screening for property with any commercial or industrial history
This stage typically takes 2–4 weeks. If any issues surface, the charity may propose modifications to the gift structure or, in some cases, decline the donation.
Step 3: Qualified Appraisal
For any real estate donation with a claimed value over $5,000, the IRS requires a qualified appraisal from a qualified appraiser (About Publication 561). The appraisal must be:
- Performed no earlier than 60 days before the donation date
- Performed no later than the due date of your tax return
- Signed by a qualified appraiser meeting IRS standards
- Documented on IRS Form 8283, Section B
The donor arranges and pays for the appraisal. Cost varies by property type and complexity but typically runs $400–$1,500 for residential and land, higher for commercial. The appraisal cost is not deductible as a charitable contribution but may be deductible as a tax preparation expense.
Step 4: Environmental Assessment (When Applicable)
For commercial property, industrial property, agricultural land with a farming history, or residential property with any prior commercial use, a Phase I Environmental Site Assessment is standard. Phase I is a records-based review — no soil samples, no drilling. It identifies whether further investigation is needed.
If Phase I flags concerns, a Phase II (soil and groundwater sampling) may be required. Properties with significant contamination may be declined, or may proceed only after cleanup.
Environmental assessment costs are typically paid by the donor for gifts the charity is prepared to accept.
Step 5: Transfer
Once due diligence is complete and the appraisal is in hand:
- A deed is prepared transferring ownership to the charity
- The deed is signed, notarized, and recorded with the county
- Title insurance is issued to the charity
- Any existing mortgage is paid off or (for bargain sales) formally assumed
- The donor receives a written acknowledgment for the donation, and completes IRS Form 8283 Section B for filing with their tax return (About Form 8283)
For retained life estate arrangements, the deed includes reserved rights for the donor to continue occupying the property for life.
Step 6: The Charity's Disposition
After transfer, the charity typically:
- Manages any remaining transition (utilities, insurance, occupancy)
- Lists the property with a broker
- Sells the property at fair market value
- Applies net proceeds (after selling costs) to charitable programs
For Salute Veterans Inc., proceeds from real estate donations fund veteran programs. See Are Veteran Donations Tax-Deductible? for the tax framework.
Timeline in Summary
- Weeks 1–4: Inquiry, screening, preliminary due diligence
- Weeks 4–8: Appraisal, environmental assessment (if applicable)
- Weeks 8–16: Documentation preparation, deed transfer, recording
- After transfer: Charity manages disposition
Straightforward residential donations can complete faster; complex properties take longer.
Common Questions
Can I stay in the home after donating? Yes, through a retained life estate arrangement. You continue to occupy the home, cover expenses (taxes, insurance, maintenance), and the property transfers fully to the charity at your death.
What if I have a mortgage? Mortgaged property can sometimes be donated through a bargain sale structure, where the charity effectively assumes the debt as part of the gift. This works when the property is worth substantially more than the mortgage balance.
What's the tax deduction? For long-term capital gain property donated to a public charity, the deduction is generally fair market value at the time of gift, subject to a 30% AGI limit with 5-year carryforward. See Tax Benefits of Donating Property for the full framework and IRS Publication 526 (About Publication 526).
Do I need my own attorney? For substantial real estate donations, yes. Even though the charity has its own counsel, your interests are best represented by your own attorney and tax advisor.
Ready to Start?
Property donation begins with a conversation to understand the specifics. Submit a property donation inquiry and a real estate coordinator will be in touch to walk through the next steps.