Some donors leave gifts of real estate to charities, and many nonprofits on the receiving ends of these gifts need assistance accepting real estate donations, especially for more complex properties (i.e. leveraged property, zoning issues, environmental cleanup, etc.). Sharing Connexion can help these charitable organizations handle valuable real estate gifts by accepting a real estate donation on their behalf and providing the required capital and expertise to improve, manage, and sell the asset. After sale, a portion of proceeds goes toward our Capital Fund, which directly funds our mission-driven programs. Not only are we able to facilitate and maximize the original donation, we are also generating further value into the nonprofit and affordable housing communities whom we serve.
Our extensive experience in the real estate sector gives nonprofits the confidence that the donation is handled prudently, and our ability to use our funds upfront into any necessary improvements helps take the financial risk off the nonprofit. The organization’s interest in the donated property is protected by a deed restriction to ensure it receives the proceeds intended for their organization, and the arrangement is governed by a contribution agreement document. We provide updates along the process, and foster a transparent, communicative relationship. It is our goal to support these nonprofits in their development goals, building their resources and capacity to serve their missions.
To learn more, download our informational packet.
Children’s Hospital Colorado Foundation (CHCF) was named as a testamentary beneficiary for a 25-acre site and house in Estes Park, Colorado. Its original plan was to immediately sell the property and convert it into cash, listing it for $565,000. After listing, a prospective buyer discovered material building code violations and the foundation considered reducing the listing by $100,000, a fire sale price. At this point, CHCF met with Sharing Connexion to discuss their options.
“Children’s Hospital Colorado Foundation conducted several meetings with Sharing Connexion and decided to move forward with them to potentially maximize this gift. By using their expertise, we felt that the project would not pull us away from our primary job – which is to fundraise. We left it up to Sharing Connexion to work with the local city and county governments to bring this project to fruition,” explains Steve Shineman, Senior Vice President at Children’s Hospital Colorado Foundation.
Sharing Connexion took title to the donated property in May 2018, subject to a deed of trust (lien) for the benefit of the foundation. The deed of trust protected the foundation’s interest in the property and disposition proceeds. Sharing Connexion funded all required improvements, cured all building code violations, subdivided the property into four lots, constructed road improvements and undergrounded utilities. To finance these improvements and manage the process, Sharing Connexion invested over $230,000 and over 200 hours in unpaid labor.
“Most nonprofits do not have the in-house expertise and capacity to manage complex real estate donation projects like this or the policies in place to take risks or tie up financial resources in a real estate project. This is why we exist! It was our pleasure to partner with Children’s Hospital Colorado Foundation to see this project reimagined and further enhance their fundraising,” says Sharing Connexion’s Founder, Ed Anderson.
In October 2019, the house sold for $529,000. The first lot sold a month later for $350,000. The last two lots were sold for $315,000 and $250,000, for a combined total of over $1.4 million in sales. The result is over $1 million of net proceeds to Children’s Hospital Colorado Foundation – doubling the donor gift impact! Additionally, Sharing Connexion received approximately $110,000 toward its Capital Fund for mission-driven programs. These programs direct key funding toward affordable housing and nonprofit real estate projects, thus creating even more community value!
“Children’s Hospital Colorado Foundation could not be happier with the final result of this project and cannot imagine how it could have gone any better. We hope to be in a position in the future to partner with Sharing Connexion again on any potential future real estate gifts to help maximize the impact to Children’s Hospital Colorado,” says Steve Shineman.