How to donate property to charity in Chicago

Do you have a house, but don’t want to go through the hassle of selling it? Donating a house to charity in Chicago provides a sizable donation to Chicago nonprofits as well as provides you with several tax benefits and incentives for donating your property to charity.

While donating property to charity in chicago is more complex than dropping off a bag of clothes to the local thrift store, groceries to a food kitchen, or writing a check to your favorite animal shelter, it isn’t as difficult as it seems and the benefits are more significant. 

Confirm donating organizations status

In order for you to donate property to a charity in Chicago the receiving nonprofit needs to have a 501(c)(3) organization designation.

Ask charity is it accepts homes as a donation

Some nonprofit charities will gladly accept your house or property as a donation. However, others may not have the means to cover the costs of maintaining or selling your donated property. When evaluating how to donate property to a charity in Chicago, make sure the charity you want to donate your property to is interested. 

Get an appraisal

While you may have an altruistic intent in donating your house to charity, it is also important to evaluate your donations for tax incentives. Hiring a professional to appraise your house value is an important step if you plan on taking tax benefits. A professional appraisal may give your home donation a higher value than values provided online or through your local municipality. A professional home appraisal for charity donations will also provide you a degree of protection if the IRS chooses to investigate your donation. 

Contact a financial advisor

A financial or tax advisor can help you navigate potential tax benefits for donating property to charity such as large tax deductions, eliminating or reducing estate taxes, and eliminating capital gains taxes. Contacting a financial advisor when you consider how to donate property to a charity in Chicago will help you understand what you need to retain for tax benefits. However, if you approach your tax advisor after you donate your property to a Chicago charity, you should bring with you the market value, record of your purchase date, original cost of property, and cost of any capital improvements.

Take care of owed costs (mortgage)

Many homeowners looking into how to donate property to a charity in Chicago have already paid off their mortgage, though some have not. By paying off your mortgage or any unpaid real estate debts (utilities, past taxes, etc.) you can simplify the donation process. If you cannot pay off your mortgage or other costs, contact a financial advisor and the receiving nonprofit to find an amicable way to donate property to a charity in Chicago. 

Save your receipts

Once you have donated property to a charity in Chicago it is important to remove expected belongings you are not donating to the nonprofit or belongings they cannot use from the property. Pay off current utilities. Then make sure you retain all documentation from your transaction and the donor charity. 

These are the basic steps you must take when exploring how to donate property to a charity in Chicago. We highly recommend speaking with a financial advisor whenever donating a house or property to charities, as well as familiarize yourself with tax benefits associated with the transfer of property.