Strategic Asset Gifts: Real Estate and Business Interests

While most charitable giving is made in cash or publicly traded stocks, some of the most impactful gifts to Barrow Neurological Foundation come from real estate and closely held business interests. These assets allow you to make a major philanthropic impact while potentially eliminating capital gains taxes and securing a lifetime income stream.

For example, when Barrow Neurological Institute was still in its early days, a generous gift of property in Central Phoenix was utilized to fund neuroscience research. Eventually, funds from this gift were used to recruit a talented neurosurgeon, Robert F. Spetzler, MD. At Barrow, Dr. Spetzler cemented his legacy as one of the world’s greatest neurosurgeons and served as President of the Institute from 1996 to his retirement in 2017. 

Valuable Benefits of Gifting Real Estate

Appreciated assets, including real estate, rental properties, or vacation homes, are great ways to support Barrow Neurological Foundation while leaving a lasting legacy. 

An outright gift of property allows you to save on appreciation taxes. Barrow Neurological Foundation can sell the asset tax-free, and you will receive a full-market-value tax deduction for the gift.

Gifting Closely Held Business Interests

If you own a business (S-Corp, C-Corp, or LLC), donating a portion of your interest before a sale can be a powerful strategy.

1. Avoid Capital Gains: By donating shares to Barrow Neurological Foundation before a letter of intent (LOI) is signed, you avoid the capital gains tax on the appreciation of those shares.
2. Offset Sale Taxes: The charitable deduction from your gift can help offset the taxes owed on the remaining shares you sell.

Comparing Illiquid Asset Gifts

Technical FAQ for Donors and Advisors

Does Barrow require an appraisal?

Yes. Per IRS regulations, the donor must obtain a “Qualified Appraisal” for any non-cash gift valued at $5,000 or more. This appraisal must be performed by a qualified appraiser no earlier than 60 days before the gift is made.

What happens if I sell my business after donating shares to Barrow?

This is a common and highly effective strategy known as a Pre-Exit Gift. If you donate your closely held shares to the Barrow Neurological Foundation before a binding sale agreement is signed, you avoid paying capital gains tax on the appreciation of those specific shares. When the business is subsequently sold, the Foundation receives the cash proceeds from the buyer, and you receive a charitable income tax deduction for the full fair market value of the shares at the time of the gift.

Can I donate a partial interest in real estate?

Yes. You do not have to donate an entire property to make an impact. 

Building a Legacy of Innovation

Planned giving is a wonderful way for you to create a lasting legacy and ensure that your charitable intentions are carried out in a meaningful and impactful way. By making a planned gift to Barrow Neurological Foundation, your legacy will live on through groundbreaking, curative research that transforms the lives of patients and families worldwide.

Take the Next Step in Your Philanthropic Journey

Ready to explore which planned giving vehicle is right for you? 

• Explore Our Technical Guides: For detailed gift descriptions, interactive calculation tools, and expert assistance, visit our dedicated gift planning portal at barrow.mygiftlegacy.org.
• Request a Personalized Illustration: See exactly how a gift would look for your tax bracket and estate plan. Contact our Philanthropy Officers today at (602) 406-3041.
• Join the Legacy Society: If you have already included Barrow in your will or trust, please let us know. We would love to thank you today and ensure your gift is directed exactly where you want it to make the most impact.

Barrow Neurological Foundation 100% of every donation goes directly to research and care. Tax ID #: 86-0174371