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Allowing Real Estate to Benefit Nonprofits

Many South Dakotans have spent their entire lives growing crops to feed the world. They’ve put down deep roots in South Dakota’s soil. Now, with the help of the South Dakota Community Foundation, landowners can keep growing for good during their lifetimes and beyond by gifting land and other types of real estate.

Program Benefits

  • Tax deductions are maximized.
  • Capital gains tax is reduced or eliminated.
  • Local communities benefit through continued tax revenue and farm operations.

How it works for landowners:

1. Evaluate Tax Implications.

The land of many South Dakotans has a very low cost basis and selling it often generates significant capital gains tax. Gifting a portion of land to charitable interests through the SDCF allows you, as a landowner, to reduce or effectively eliminate capital gains and estate tax.

2. Consider Gifting Options.

Each donor’s situation is different, but several land gifting options exist, including:

  • Making an immediate or deferred gift of land.
  • Allowing the SDCF to sell your gift of land. The sale proceeds are added to your endowed fund and a percentage is distributed to charities annually.
  • Choosing the SDCF to hold and manage your gift of land. A portion of the land’s net income will be distributed to the nonprofits you recommend each year.
  • ​Retaining a life estate in land by gifting a piece of property but continuing to receive a stream of income off that property throughout your life.

3. Produce in Perpetuity.

You’ve focused on yielding a harvest your entire life. By gifting land through the SDCF, that production, and your legacy, doesn’t end. Your land will continue to provide for others as proceeds from the sale of your land or annual net income benefits the charitable interests you and your family care about, forever.

Growing for Good — It is what you do. It is what we do. And we look forward to working with you to reduce your tax bill and benefit your community.