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  • 1.  Donation & Subsequent Sale of Land

    Posted 03-07-2025 12:58 PM

    Our DO received an inquiry from another organization in our region seeking guidance. I'm seeking advice from this group regarding this scenario. 

    A donor is wanting to gift a parcel of land, and requests that when the organization liquidates it, it be sold to a specific individual. (It is a piece of farmland they wish to be sold to a neighboring landowner.) I believe this would not qualify as a charitable gift, but our DO is wondering if there is a way to make this possible. 

    This does not affect our office, but it did open an interesting discussion today. I'm curious if the group has any thoughts?



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    Jana Fross
    HaysMed Foundation
    jana.fross@haysmed.com
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  • 2.  RE: Donation & Subsequent Sale of Land

    Posted 03-07-2025 01:08 PM
    It is not a gift and I do not know of a way to make it a gift.
    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard



    Original Message


  • 3.  RE: Donation & Subsequent Sale of Land

    Posted 03-07-2025 02:59 PM
    Now that I am back in my office, I can go ahead and elaborate.

    Based on the circumstances you have described, it appears that the donor retains control over the asset even after its transfer. By dictating the terms of the sale and restricting your ability to engage in an independent and unrestricted marketing effort-including your discretion to hold and manage the asset under your own investment strategy-the donor is effectively using your organization as a conduit for a prearranged transaction.

    This structure raises concerns regarding the validity of any potential tax deduction the donor may be seeking, as the arrangement suggests an attempt to circumvent IRS regulations on charitable contributions.

    If the donor wishes for a specific individual to purchase the property, they must facilitate that transaction independently, without your organization's involvement.

    Do not seek ways for the donor to make this anything other than it is - a prearranged sale to a specific individual.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 4.  RE: Donation & Subsequent Sale of Land

    Posted 03-07-2025 06:40 PM

    Thank you, John. I knew this was the correct answer but lacked the language to share with staff. I appreciate your time and expertise. 



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    Jana Fross
    HaysMed Foundation
    jana.fross@haysmed.com
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    Original Message


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