Planned Giving

Real Estate

Gifts of Real Estate:
Story One: Sharon, a success orthodontist, is also the parent of a St. John’s student. Years ago, Sharon built the building in which her practice is located, with room not only for herself, but also for three other medical practices. She also has brought her son into the practice and would like to transfer ownership of the building to him. The building is located near a major medical facility and has recently been appraised at over $1 million. Sharon has also fully depreciated the building, thus exhausting a good deal of her tax benefits from the building.

By donating the building to St. John’s, she can generate a tax deduction for the entire $1 million value, and then still leave the option for St. John’s to sell the building back to her son, perhaps over time. In the meantime, the building produces a steady and secure stream of rental income, thus safeguarding St. John’s cash flow in the interim.

Story Two: Ed and Shirley Smith bought a condo on South Padre Island 20 years ago when their children were small and the beach was an attractive and reliable vacation destination. Now that their children are scattered across the globe, Ed and Shirley have come to love the adventure of cruising in different exotic locations, and the condo has become a burden. It has also appreciated greatly in value (as have the annual condo fees and taxes). By donating the condo to St. John’s, Ed and Shirley can relieve themselves of the cost and burden of ownership, secure a valuable income tax deduction for the full value of the condo, avoid all the capital gains tax they would otherwise owe, and make a large and significant gift to the School.

Gifts of Real Estate - How they work:
Real estate can make an excellent gift to St. John’s. Whether an investment property, a personal residence, or a second home, gifts of real estate can often make valuable gifts that benefit both the donor and SJS. Following the St. John’s real estate checklist (available in the Advancement Office) donors need to provide relevant information about the property and gather the necessary documents about the property.

Donors also need to secure an independent appraisal of the property. Usually, an MAI certified appraiser will provide the best and most reliable information about value and marketability. The appraisal will provide information about value. Real estate professionals knowledgeable about property like the one the donor is considering giving should also be consulted, usually in concert with SJS staff. Finally, both St. John’s and the donor should agree on a tentative plan for liquidation, being careful to avoid a binding sales agreement but keeping in mind the interests of both the donor and the School.