Greater Worcester Community Foundation may accept gifts of real property.
Each situation will be evaluated and informed by the following:
- All gifts of real property to the Foundation shall be accepted only after being evaluated for the financial, environmental, legal, or public relations risks or liabilities associated with the gift. The level of information required will vary depending on the nature of the property.
- The Foundation’s basic policy is to accept gifts of real property that may be sold so that the cash may be invested and used for charitable purposes.
- The Foundation may, in some cases, accept gifts of real property to hold title temporarily for the purpose of transferring the property to a qualified charitable organization for charitable use.
- The Foundation will not usually accept property with a) a value of less than $20,000; b) existing debt in excess of 30% of the property’s value, or c) hazardous waste problems.
- The Foundation will generally require at least the following:
- Site inspection by a Foundation representative to evaluate physical condition and needed maintenance/repairs;
- A Phase I environmental site assessment and/or level an audit to determine environmental compliance;
- A cost analysis and determination of marketability;
- The deed;
- Property tax bill to show assessed value;
- Association agreement, if applicable;
- Lease or rental agreements, if applicable;
- Notes or mortgages, and
- A title insurance policy. The Foundation’s legal counsel will review all documents. Expenses of legal review, title insurance, environmental audit, etc., are charged to the sale proceeds.
- The donor should seek his/her own legal counsel to review the terms of the donation.
- The establishment of value is the responsibility of the donor. If the value is over $5,000, the donor needs to have a qualified appraisal done. The Foundation will supply or sign IRS gift form 8283 as required.
- When the Foundation is involved in the sale of property, it will list the property, at fair market value, with an experienced broker in the area where the property is located. The Foundation may wait for a reasonable period of time to receive an offer near the appraised value. Unless a separate agreement is made with the donor, the Foundation has total discretion regarding when and at what price the property will be sold. Such decisions will be made with the knowledge and consent of the donor.
- The Foundation’s legal counsel will review all documents. Expenses of legal review, title insurance, environmental audit, etc., are charged to the sale proceeds.
Contact Kelly Stimson
Vice President for Donor Services & Relations