Transforming Realty to Gift Reality
Discover All of Your Options
Make a Gift TodayLearn more about the many ways to use real estate to support Pennsylvania State University in the FREE guide 7 Ways to Donate Real Estate.View My Guide
Want to make a big gift to Pennsylvania State University without touching your bank account? Consider giving us real estate. Such a generous gift helps advance our teaching and research for years to come. And a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you get a federal income tax charitable deduction. This eliminates capital gains tax. And you no longer have to deal with that property's maintenance costs, property taxes or insurance.
Another benefit: You don't have to hassle with selling the real estate. You can deed the property directly to Penn State or ask your attorney to add a few sentences in your will or trust agreement.
Learn more by viewing our Gifts of Real Estate fact sheet.
Ways to Give Real Estate
You can give real estate to Penn State in the following ways:
When you make a gift today of real estate you have owned longer than one year, you obtain a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.
A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for Penn State continues after your lifetime and that your estate will benefit from a federal estate tax charitable deduction.
Perhaps you like the tax advantages a gift of real estate to Penn State would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to Penn State but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though we would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home's value.
Are you tired of the hassles of maintaining your property such as paying taxes, utilities and repair bills? Consider donating the property to Penn State in exchange for reliable payments for life for you (and someone else, if you choose). When you arrange a charitable gift annuity, you're allowed a federal income tax charitable deduction in the year you set up the gift annuity when you itemize on your taxes. If you use appreciated real estate to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. A gift of unmortgaged property to fund a deferred gift annuity is preferable and generates the greatest tax benefit.
Want to sell Penn State your property for less than the fair market value? A "bargain sale" may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it's worth. The difference between the actual value and the sale price is considered a gift to us. A bargain sale can be an effective way to dispose of property that has increased in value, and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction at the same time.
You can contribute any type of appreciated real estate you've owned for more than one year, provided it's unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.
This gift can be a wonderful way for you to benefit Penn State and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.
A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support for Penn State students in perpetuity.
When you transfer real estate to your donor advised fund, you avoid capital gains taxes and receive a federal income tax deduction based on the fair market value of the property.
An Example From Penn State
When Richard Robinson acquired his aunt's million-dollar Lehman, Pennsylvania, home and fifty-acre farm after her death in 1963, he had a difficult decision to make. A Connecticut resident, he wasn't close enough to take care of the property or farm animals. But he and his cousins-who lived in the Wilkes-Barre area-decided to celebrate their relatives' philanthropic spirit: They would give the real estate to establish a permanent home for Penn State in the Wilkes-Barre region.
"The thing that is unique about Penn State in the local picture is that it offers the associate degree in various fields of engineering technology. This is not duplicated anywhere else, and the demand for it is very great," said one of the cousins, John N. Conyngham III, in 1965, when the property was given to Penn State. "Certainly our hope is that over the years this magnificent home and the acres around it can be expanded to many times its present size."
In the mid-1960s, enrollment at the Penn State Wilkes-Barre campus was steadily increasing and on the verge of outgrowing its facilities. The campus' engineering program was accredited in 1949, following decades of providing educational programs that focused on the employment opportunities in that region. In 1957, a two-year program in survey technology was approved, the precursor to today's baccalaureate degree in surveying, the only one offered in the state.
Because the Wilkes-Barre community showed continued interest in receiving a Penn State degree, then-Penn State President Eric Walker welcomed the opportunity to invest in the region.
"The real objective is to develop more places where we can educate students and expect them to hold jobs in the state of Pennsylvania," said President Walker in 1965. "We want to develop the associate degree programs which we think are so important to the economic growth of the Wilkes-Barre area. We have a number of these programs, and if we get the faculty and the facilities-I know we're going to be able to do it-it's going to be a really successful commonwealth campus."
Read the full story on Richard Robinson's gift.
Not Sure How to Begin Planning?Download our FREE Personal Estate Planning Kit
- Contact Michael J. Degenhart at 888-800-9170 (toll free) or email@example.com to discuss the possibility of giving real estate to Penn State.
- Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
- If you include Penn State in your plans, please use our legal name and federal tax ID.
Legal Name: The Pennsylvania State University
Address: c/o Office of Gift Planning, 212 The 103 Building, University Park, PA 16802
Federal Tax ID Number: 24-6000-376
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.