Any intended gift of this type needs to be reviewed by UJA-Federation's gift acceptance committee.

Donor receives a charitable income-tax deduction for the full fair-market value of the unencumbered real estate. Donor may apply the deduction up to 30% of adjusted gross income—in the year of the gift—with the five-year carryover provision. Donor avoids capital-gain tax on the appreciation donor has in the property, and there are no gift taxes. Because donor has removed the property from donor's estate, donor may also reduce estate taxes.