The university is grateful for the wide-ranging gifts of real estate and land it has received, including residential and commercial real estate, developed and undeveloped land and farmland. Such gifts could be used to either enhance current programs or alternatively may be converted to cash proceeds to be used to fund your preferred university activity.
Gifts of real estate and land are eligible to receive a charitable tax receipt for the current market value of the property, as determined by one or more qualified appraisers. Except for principal residences, these gifts are subject to capital gains tax upon disposition. Generally, the charitable tax credit that applies from the gift will more than offset the tax from the disposition.
Gifts of property can be made either through the donor's estate or during the donor’s lifetime.
A donation of land can be an immediate or outright gift, or it may be donated as part of one’s estate.
A donor of land or real estate may also provide the gift while retaining an interest in that property. Such an arrangement could allow the donor the full use and enjoyment of the property for their lifetime or for a stated period of time.
An independent appraiser must appraise the property and determine its fair market value. In addition, an environmental assessment may be required.
Example (for illustrative purposes representing donor residing in Alberta)
Robert Jones, ’87 BCom, decides to gift his house, his primary residence, to the University of Alberta. The property is valued at $2 million. The proceeds will fund the Robert Jones Professorship in Finance. He will
- Receive a charitable tax receipt for the fair market value of the property ($2 million), resulting in a tax credit of $1 million
- Eliminate capital gains tax since he has gifted his primary residence
- Receive a five-year carry forward tax provision (if it is gifted during lifetime) or a one-year carry back tax provision (if gifted upon death)
- Support the work of the University of Alberta by funding a professorship position
For more information, please contact the Augustana Development Office Team:
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