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Gifts of Real Estate

   

The College may accept gifts of real estate, including houses, condominiums, commercial properties, farm land, rental property, and undeveloped land, after a thorough review of the following factors (insofar as they may be relevant to the proposed gift):campus in the winter

 

  

  1. usefulness of the property for College purposes;
  2. marketability of the property;
  3. existence of restrictions, reservations, easements, and/or other limitations;
  4. existence of encumbrances, such as mortgages and mechanics liens;
  5. carrying costs, such as property owner’s association dues, taxes, insurance, and other maintenance expenses;
  6. potential costs of subsequent liquidation of the property; and
  7. fair market value in relation to the costs and limits listed above as determined by a qualified appraisal conducted in accordance with Internal Revenue Service (“IRS”) standards.

 

The College will accept no gift of real estate that imposes restrictions as to timing of sale or parties to whom the real estate may be sold.

 

Both a satisfactory title search and environmental audit conducted by a professional service are required prior to acceptance of a gift of real estate. The College shall secure the title search and environmental audit at its expense. When a trust is funded with real estate, these expenses will be charged to the trust.


The cost of preparing the deed conveying the real estate will be the responsibility of the donor. Real property taxes will be prorated between the donor and the College/trustee at the time of settlement. Real estate transfer taxes will be divided equally between the donor and the College/trustee at the time of settlement. Recording fees will be the responsibility of the College/trustee.

Donors are responsible for obtaining a qualified appraisal of the real estate to establish its value for purposes of determining their charitable deduction. When a gift value is used to determine payments to an income beneficiary or to establish the value of a pledge payment, the College may require an additional qualified appraisal to substantiate the fair market value of the gift. In this case, the fair market value will equal the average of the two appraisals. If the appraised values are not within a ten-percent range, a third appraisal may be required to determine a gift value, with the expense equally divided between the parties.


Holding costs and costs of liquidation of real property (such as real estate taxes, utilities, property insurance, routine maintenance costs, transfer taxes, appraisals, recording fees, legal fees, etc.) which have been paid by the College/trustee shall be charged against the fund or trust to which the gift is designated. In a unitrust, these expenses will be accounted for in the annual revaluation required by the trust agreement. All trust documents will clearly state these provisions as applicable.

 

A gift of real estate may take the form of a bargain sale.


Acceptance of all gifts of real estate requires the prior approval of the Gift Acceptance Committee.

 

For more information, please contact Robert Brown, Senior Advisor for College Development & Principal Gifts, at 717-796-1800, ext. 2260.


 




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