You may contribute real property to the University, either as a bequest or, more commonly, by a lifetime transfer, and realize significant tax benefits. The University looks at possible gifts of property on a case-by-case basis. It is a detailed process but very workable and the rewards are great.
Gifts of real property may consist of almost any type of property: a personal or recreational residence, a farm or ranch, a commercial building, subdivision lots or any undeveloped parcel of land. The gift may be for all of your interest in the property or an undivided fractional interest.
Individual charitable goals and financial needs determine which of the following methods of giving real property is most appropriate for your situation.
Residence or Farm
A donor may give his or her personal residence or farm to SC State University and retain a life interest in it for the donor and his or her spouse. This gives the donor an advantage both in current income and estate taxes. There is a charitable deduction in the year the property is deeded to SC State University.
Personal residence is broadly defined to include any property used as a personal residence even if it is not used as the principal residence.
At the death of the donor or spouse, the property is transferred to SC State University Foundation to be used for purposes originally expressed by the donor.
You transfer the property by deed to the South Carolina State University Foundation and it is subsequently sold unless there is a special reason for holding the particular parcel of real property.
Life Income Gift
Real property is transferred to a trust where it is sold by the trustee. The income is paid to you and/or other named beneficiaries. The income paid to the beneficiaries for life depends on the net proceeds realized on the sale of the real property in combination with a previously agreed upon rate of return. At the death of the last of the life beneficiaries, the assets of the trust pass to the University's Foundation.
Life Tenancy Gift
In very limited situations, ownership of the real property may be transferred to the University's Foundation, but you retain the right to live on the property for your lifetime. You receive an income tax charitable contribution deduction for the present value of the remainder interest of the gift. Upon the death of the "life tenant," the property may be sold or used by the University.
For further information about items mentioned above contact the Development Office at (803)536-8742