Donating Your
Land to the Order of Thelemic Knights
Donating your land is a perfect option if you own unused property and
are tired of paying taxes.
When donating land, you transfer full title and ownership to the Order
of Thelemic Knights. This makes you eligible for a federal income tax
deduction which can be a substantial financial benefit. Even though you
are transferring the title to the Order of Thelemic Knights, you may
still be able to live on the property. There are many ways that land
donation can meet both, your charitable needs as well as your financial
goals.
The explanations and examples below represent only the most common land
donations. Please remember that the Order of Thelemic Knighst does not
offer legal or financial consultation and that we present the
information below for illustrative purposes only. Please speak to your
personal advisors before engaging in a transaction with any non-profit
organization.
Outright Donation
In the most basic form of donation, full fee interest in a property is
transferred to the Order of Thelemic Knights. This qualifies you,
the donor for a federal income tax charitable deduction for the fair
market value of the property as determined by a qualified appraiser.
For example: The owner of a 10-acre
parcel is willing to donate the land. The property is valued at
$30,000. The donor receives a $30,000 deduction for federal income tax
purposes. This deduction could produce a significant tax savings.
Donation with Life Estate
If you are interested in donating land but still want to live there, a
donation with a life estate can be the solution. Generally, the
property owner keeps his right to continue to live on the donated
property until some designated event conveys possession of the property
to the Order of Thelemic Knights.
For example: A landowner with a house
on 10 acres of land wants to live there as long as possible, but has no
heirs and would like the land to go to the Order of Thelemic Knights
after they have passed on. The land is donated, but the right to live
there for the rest of his or her life remains theirs. The donor
receives a charitable tax deduction which is calculated by the IRS
considering age and life expectancy and give a percentage that
represents the value of the girt. If this donor is 65, the
percentage may be about 33%. Thus, if the land is worth $30,000,
the gift would produce a charitable deduction of approximately $9,990.
Bequest
You may also donate your property through your will or living trust.
This allows you to maintain full control of the land during your
lifetime. When you donate land through bequest, the donor’s estate
receives an estate tax charitable deduction for the fair market value
of the property, thus reducing substantial estate taxes.
For example: A landowner wishes
that her or her property go toward helping the Order of Thelemic
Knights achieve its goals, and she communicates her desire to her
attorney. The attorney adds this bequest to the donor’s will. When the
owner dies, the Order of Thelemic Knights inherits the land and the
landowner’s estate tax liability is reduced because the charitable
deduction removes the value of the land from the estate. This can help
reduce the family's tax burden, which can be as high as 55 percent.