Commercial Investment Real Estate July/August 2017 | Page 17

Costs typically are involved in the due diligence process. As a result, a donation agreement must be signed by the donor for the Foundation to proceed. The donation agreement commits the contributor to transfer the property to the Foundation at the option of the Foundation. The Foundation’s due diligence process includes title review; environmental reviews; reviews of lease agreements, if applicable; and other steps as outlined on the website for the real estate gift- ing program at www.realestategifting.org. It is during this step that a local real estate professional markets the property under the terms of the donation agreement. For the property donation from Juge, Patterson worked with Mike Stinson, CCIM, of Saurage Rotenberg Commercial Real Estate LLC, in Baton Rouge, La. Stinson found a buyer for the property, so when it transferred from Juge to the Foundation, it could be sold to the buyer. “This was a classic example of a charitable gift being the most benefi cial way to dispose of the property,” Patterson says. “The economy of Haynesville had declined and has not fully recovered. Additionally, the growth being experienced was on the other side of the town.” According to Patricia Tesluk, CCIM, the 2016 CCIM Foun- dation president, “It was extremely generous of Richard Juge to donate property to the CCIM Foundation. The proceeds, upon sale, are being used to support the Foundation’s ongoing programs, which include more than 100 named and endowed scholarships for those pursuing the CCIM designation . These scholarships range from assistance for the costs to take CI 101, CI 102, or CI 103 courses, to covering the costs of the exam review and fi nal CCIM designation exam.” Since these donations and their tax deductibility are governed by the Internal Revenue Code, both Juge and the Founda- tion were required to submit the appropriate forms to the IRS. The property donation provided Juge with a tax deduction for the property’s appraised value, as certifi ed by an independent appraiser, and supplied funds to the Foundation. This is clearly a real property donation, with multiple benefi ts for all those involved. Mary Stark-Hood, JD, CFP, is president of the Hood Group and serves as a consultant to the CCIM Foundation. Contact her at [email protected]. Making Transactions Happen With Real Estate Gifting CCIM Foundation’s Real Estate Gifting course gives brokers an estate planning alternative to propose to clients, an alternative disposition strategy for challenging properties, as well as tools to service the needs of charitable organizations. This is your chance to learn from two leaders in the field. August 14 & 16 W. Duncan Patterson, CCIM Patterson-Woods & Associates 12 p.m. - 2 p.m. CDT Mary Stark Hood, JD, CFP The Hood Group, Inc. Two online sessions Learn more and register at www.ccim.com/gifting or call [phone], opt 2 CCIM.COM July | August 2017 15