Overview
You sell an appreciated asset (often real estate) to a charity for less than its fair market value. The transaction is part sale, part gift: you receive cash for the sale portion and a charitable deduction for the discount. Capital gain is allocated only to the sale portion, so it is an efficient way to free up liquidity from an illiquid asset while supporting a cause.
Best For
- Owners of appreciated real estate who want partial liquidity
- Donors who want cash plus a deduction in one transaction
- Those whose asset a charity is willing and able to acquire
📊 Key Tax & Giving Advantage
Capital gains are recognized only on the sale portion, while the gifted discount generates a charitable deduction.
Considerations
- Requires a charity willing to purchase the asset
- A qualified appraisal is needed for the gift portion
- Gain allocation rules make professional structuring essential
Interested in Charitable Bargain Sale?
Every philanthropic structure should be tailored to your assets, goals, and state law. Request a private consultation and we'll help you choose and establish the right vehicle.
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