Donating Real Estate to Charity Revitalizes Neglected Properties While Offering Tax Incentives to Donors
(PRUnderground) February 11th, 2025
Driving Successful Lives Inc. (DSL), a nonprofit organization committed to aiding individuals in need, recently accepted the donation of a long-abandoned truck terminal in Saginaw, Michigan. The industrial property, left unused for more than three decades, had become a costly liability for its previous owner due to property taxes, maintenance demands, and insurance expenses.
Many business owners face significant financial challenges when holding onto depreciated commercial properties. A major hurdle involves depreciation recapture—a tax obligation that arises when selling depreciated assets. The IRS requires sellers to pay ordinary income tax on the portion of the sale representing previous depreciation deductions, often resulting in steep tax bills. This financial deterrent frequently leads property owners to let valuable real estate sit idle and fall into disrepair.
By choosing to donate the truck terminal to DSL, the property owner was able to:
- Sidestep depreciation recapture taxes typically incurred during a sale.
- Qualify for a charitable tax deduction based on the property’s fair market value.
- Eliminate ongoing financial obligations tied to property taxes, insurance premiums, and maintenance costs.
DSL, in turn, converted this donation into a meaningful community opportunity. The nonprofit facilitated the sale of the property, enabling the transformation of a previously blighted site into a productive space with renewed purpose. Proceeds from the sale are being channeled directly into DSL’s programs, which provide housing, transportation, educational resources, and essential services to individuals and families facing hardship.
Mark Maupin, Director of Driving Successful Lives, highlighted the mutual benefits of this approach:
“This donation not only relieved the company of a financial strain but also empowered us to make a positive difference in the community. We encourage other business owners, community groups, and municipalities with underutilized properties to consider this model. Everyone benefits—the business, the community, and most importantly, the people we serve.”
Driving Successful Lives is actively seeking partnerships with property owners weighed down by the costs of unused commercial real estate. By donating these properties, businesses can unlock valuable tax benefits while contributing to transformative community initiatives.
For more information on how to donate a property and support DSL’s mission, visit www.drivingsuccessfullives.org.
About Driving Successful Lives
Driving Successful Lives’ mission is to help raise funds and improve the lives of veterans, homeless families, children, those with addictions while helping donors generate a tax deduction, often with property or vehicles they might no longer want.
Every time a person gives to the charity of their choice it may also create a tax benefit for them. Car donations, real estate donations or money donated to non-profit institutions throughout the tax year may be tax deductible which means that they could make a positive difference for people while reducing the amount of income taxes they pay. Contributing to charities can be a very convenient way to reduce taxes and help others.
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Original Press Release.
