I've been a party to such a thing several times, Shomari.
There is no gift until the title is transferred. At that time the
transaction is handled like any other real estate donation. If the rental
agreement mandates the donation of the asset in 10 years, you may book a
receivable at an amount your CFO feels is appropriate. Absent that,
though, there is nothing to count until you actually own the property.
John
John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
On Mon, Feb 11, 2019 at 2:49 PM Shomari White <
shomariwhite@hotmail.com>
wrote:
> Hi Fundsrvs,
>
>
> Happy Monday.
>
>
> I am looking for an advice on this real estate donation scenario:
>
>
> A real estate developer builds the organization a building to which the
> organization pays rent for 10+ years. After the 10+ years, the real estate
> developer wants to donate the building to the organization.
>
>
> If you have experience with this sort of real estate transaction (there
> are lots of complexities), please let me know. I would greatly appreciate
> your wise counsel. Thanks much.
>
> Best Regards, Shomari.
>
>
> Shomari White
>
> President
>
> aasp
>
> &
>
> Associate Vice President of Operations
>
> Children's Hospital of Philadelphia
>
> (267) 426-0049
>
>
>
>
>
>
>
>