The phrasing was along the lines of "splitting the price" so I inferred they have a valuation they want to divide between a sale and charitable gift, and it sounds like it may qualify as a bargain sale. We're already planning on touching base with our Legal team, so having this reference to ensure we're using the right language will be very helpful! Thank you!
------------------------------
Meghan Hickey
Rhode Island School of Design
mhickey@risd.edu------------------------------
Original Message:
Sent: 05-05-2025 10:43 AM
From: John Taylor
Subject: Real Estate Partial Sale
Is what is being proposed a significantly discounted price? That is, the appraised value is $500,000, but they are selling it to you for $250,000 (made-up numbers, but you get the idea). If that's the case, this could be recognized as a "bargain sale," as discussed in IRS Publication 526.
However, I am unsure how all the legal paperwork would be handled, as the title/deed/whatever would need to reflect the property's FMV. You will want to get your attorney and CFO involved.
If you are discussing something completely different, please provide more details.
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 5/5/2025 11:36:00 AM
From: Meghan Hickey
Subject: Real Estate Partial Sale
I've somehow found myself with another unusual situation right after my last post. A donor is interested in gifting a parcel of land and the building on it, and leadership has suggested that we make a partial payment of the value and acknowledge the remainder as a charitable gift. This sounds like bifurcation to me, but I don't have direct experience with gifts of real estate, so I'd appreciate feedback from someone who's more familiar with that side of the law. I have been thinking of this in the same vein as any other in kind gift based on prior research. I'd be very grateful for any further advice or recommendations!
------------------------------
Meghan Hickey
Rhode Island School of Design
mhickey@risd.edu
------------------------------