As Baby Boomers age and contemplate the future of their real estate holdings, and as charities seek ways to replace disappearing government support, this area holds future promise for growth. Charities are eyeing a large portion of this asset pool to replace shrinking federal dollars. Yet, most charities do not invest in commercial real estate with the intent to own and create an income stream. It's time for brokers and consultants to gain a basic insight into the world of charities and their potential beneficial relationships with this sector. While planned-giving officers associated with charities are the primary point of contact, brokers should not overlook relationships they have already established with investors and other active clients who have reached this stage of estate planning.
Donors often recommend their own brokers to handle the details.
Commercial investment real estate brokers should not let lack of knowledge close the door on this area of services. These charities receive tax-free status in return for following IRS guidelines. One requirement regarding gifts is that charities spend the majority of the proceeds they receive. Although gifts come in many forms, this discussion focuses on real property. About 20 percent of this amount is in real property.