Question:  I would like to make a meaningful contribution to my alma mater – my 50 year reunion is coming up. I have also decided, reluctantly, that the time has come for me to part with the family vacation home in Maine that has meant so much to me and my late husband over the past 40 years. The kids and grandchildren have moved away and no longer use the property, nor do I, and the upkeep and taxes are expensive and worrisome.

Would it be possible to directly use my Maine property to make the gift to my college – rather than going through the ordeal of selling the property (and paying big capital gains taxes) and  then making a cash contribution?

– a 70-year old widow living in Newton, MA.

Answer: Yes! You could deed your property directly over to the college, and they would presumably sell the property to generate cash to be used by the college however you specify. One advantage to you in doing it this way is that you would totally avoid any capital gains tax that you would otherwise face if you sold the property yourself. Another advantage is that the college, not you, would be responsible for selling the property.  Yet another advantage for you would be that you would be entitled to an income tax deduction equal to the full appraised fair market value of your property.

All of this assumes, of course, that your college would be interested in receiving such a gift…

Read the full article about donating property at the National Center for Family Philanthropy.