Overview: Most charities will not accept donations of real estate because of the liability and complexity of managing property, lack of immediate liquidity, and the need to screen properties for risk such as liens, code violations, hidden property condition defects, title problems, environmental issues, etc.
Zetabid manages a full service due diligence and charity real estate auction platform to open the doors of real estate donation of all property types (with or without mortgage debt) to all qualified charities, and provide donors with the maximum tax deduction. We shield the charity from the liability of ownership and provides instant cash liquidity to the charity. Zetabid works on behalf of many charities (and can donate proceeds to your favorite ones).
- Property owners submit an asset for consideration including the basic property information, current loan amount and brief description. See form below
- Letter of Intent submitted outlining the donation terms (closing date, process timeline, and any cash to donor/seller at closing (donors do not have to donate 100% of their equity)
- Title report ordered and property screened for accurate valuation and undisclosed liens
- Property owners sign a donation purchase and sale contract using our central charity 501(c)3 as purchaser (with desired charity recipient receiving 100% of the net proceeds on the closing statement but shielded from liability) with a closing in 30 to 90 days (land/homes 30 days, commercial property 60-90 days)
- Property placed on the open market using a sealed bid or online auction format to solicit highest and best offers from market buyers.
- Auction buyer closes in 15 to 45 days depending on the value and property type. Closing is concurrent (double closing) with donor deeding the property to the charity and the charity deeding to the auction buyer same day.
- Upon sale, charity files IRS Form 8282 with the IRS (required when donated property sold within 3 years).
- Donor obtains a qualified appraisal to establish the tax deduction either up to 60 days before donation/closing date or up to due date of next tax return (Note the deduction of more than $5,000 requires donor to obtain a qualified appraisal, and attach to return if greater than $500,000)
- Charity signs IRS Form 8283 (donor’s appraisal statement setting the donation amount).
- Charity receives the net proceeds from the sale as shown on the closing statement.
Submit Property for Consideration
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