Gifts of real property can be outright, made to a charitable remainder unitrust, or take the form of a "retained life estate" contribution. The University gives consideration to accepting all forms of real property, including residential, commercial and industrial properties, undeveloped land, and ownership interests in these kinds of properties, e.g. limited partnerships. We have an established track record in evaluating and accepting a variety of income-producing properties, including apartment, retail and office buildings (or interests in each kind of property).

In the case of an outright gift, the University generally sells the property so the proceeds from the sale support the program or fund of the donor's choice. If a gift of real property is made to a charitable remainder unitrust—specifically a flip unitrust—the property is sold and the proceeds are reinvested in a portfolio of securities to produce income for the donor's lifetime or for a specified period of time. With a retained life estate in a personal residence, vacation home or farm, a donor contributes a remainder interest in the property to the University but retains a life estate. Under such a gift arrangement, a donor is able to continue living in or using the property for life.

Contributing appreciated real property to the University of Washington presents significant tax benefits for the donor. If the property is donated outright, the donor can typically deduct the full fair market value of the gift up to 30 percent (30%) of his/her adjusted gross income in the year of the gift, with a five additional "carry-forward" for any unused deduction. With a unitrust or retained life estate gift, the tax deduction equals the remainder value of the property which is less than the fair market value.

• Substantiating Charitable Deductions For Gifts Of Appreciated Real Property
• Due Diligence For Real Property Gifts
• Post-Gift Disposition Of Real Property