How does a charity benefit when donating property to a nonprofit?

If you have an abandoned, distressed, or vacant property in Chicago, IL many homeowners believe you have two options, hold onto the distressed property or sell your distressed home. However, a third option is becoming more popular in Cook County, IL and in Chicago’s southside and westside neighborhoods. 

Chicago has thousands of older homes that have gone through several renovations over the years as well as distressed properties. While you may have considered selling your older Chicago home, another option is donating property to a nonprofit. 

Donating property to a nonprofit not only provides a substantial donation to the charity, but may also be more financially beneficial to you than selling your house or property. Donating property to nonprofits in Chicago is a great way to reduce your tax burden, reduce or eliminate estate taxes, and avoid capital gain taxes. 

So, when you donate property to a nonprofit in Chicago, how does a nonprofit reap the benefits?

Use the property for their purposes

When a nonprofit accepts property as a donation it can be a difficult decision. A nonprofit needs to understand the total financial burden of accepting the property as well as what to use it for. Smaller nonprofits may have a difficult time accepting donated property. However, that doesn’t mean a donated property can’t be of use. 

When donating property to a nonprofit, one way that a nonprofit can benefit is to use the donated property for their own purposes. Whether the property is used for office space, as a shelter, or even a warehouse and distribution center, a donated property can significantly reduce the toll of buying a property with the nonprofits money. They may also be reducing the burden of lack of space, or improving their ability to provide services to the public and those in need. 

Sell the property

When donating property to a nonprofit many nonprofits will turn around and sell the property so that they can put the money to use within their organization. This is often the case with smaller nonprofits who cannot afford to renovate and maintain a property or have no physical use for the property. 

While some may consider selling their house or property and donating the proceeds to the charity, due to the tax benefits of donating property to a Chicago charity it is often best to donate property to a nonprofit rather than sell your property and donate the money. 

Donating property to a nonprofit is in the spirit of providing for the community. However a nonprofit uses donated property, your contribution is important as well as an excellent way for you to take advantage of tax write-off opportunities.