The donor's basis is apportioned between the gift portion and the sale portion. The capital gain recognized in the gift portion is not taxable to the donor; the difference between the sale price and the basis apportioned to the sale portion is taxable to the donor as capital gain. When the Foundation sells the real estate, the proceeds will go to a fund that you create. This fund can be a donor-advised fund (advised by children or others you name), a field of interest fund, a designated beneficiary fund, or an unrestricted community action fund.

In order to evaluate a potential gift of real estate, the Foundation will work with you to learn the specifics of your particular property, including such things as fair market value, marketability, possible environmental issues and related questions. If a charitable gift of real estate interests you, The Minneapolis Foundation can provide you with written guidelines to assist you in compiling the necessary information.