Survey on Real Estate Gifts

Real estate is an important asset class for Americans, but an underused resource for charitable giving. To help charities work with donors who would like to contribute real estate, NCPG is examining national trends in the donation and acceptance of real estate gifts. We appreciate your participation in this survey, which includes 29 multiple-choice questions that seek general information about your organization's policies, practices and constituents. The survey takes no more than 15 minutes to complete. Your responses will be completely confidential, and will be viewed only in combination with other responses. If you would be willing to discuss your experience with members of the task force that will analyze the survey data, please submit your name and contact information at the end of the survey. If you have questions about the survey, contact Barbara Yeager at byeager@ncpg.org.

1) How would you characterize real estate gift activity at your organization in light of recent downturns in the economy and in some real estate markets? Choose all that apply.

Real estate gift activity has increased.   Real estate gift activity has decreased.   Real estate gift activity has not changed.

2) How would you characterize your organization's attitude toward real estate gifts at present?

We market our interest in a variety of real estate gift types.   We market our interest in simple real estate gifts (e.g., outfight gifts, and by bequest).   We don't market real estate gifts, but we will accept real estate gifts under certain circumstances.   We don't market real estate gifts, and we don't accept real estate gifts.   Not only don't we market or accept real estate gifts, but our stated policies probably discourage prospects from inquiring about real estate gift possibilities.   Other (please specify)

If you selected other, please specify:

3) Does this attitude reflect a change in recent years?

We have become more receptive to real estate gifts.   We have become less receptive to real estate gifts.   No change in attitude.

4) If your organization is reluctant to accept real esate gifts, please check the reaons that seem applicable.

Unfortunate experiences with earlier real estate gifts.   Reluctance in the Finance Office.   Real estate gifts are too time-consuming and complicated.   Concern about environmental liability risk.   Concern about liquidity risk (i.e., not being able to sell the property in a timely manner).   Concern about getting stuck with operating costs pending sale of the property.   We don't have access to the staff capacity or expertise to handle real estate gifts.   No specific reason--it just hasn't traditionally been done here.   Other (please specify)

If you selected other, please specify:

5) On average, how many real estate gift inquiries (in any form, including testamentary) per year has your organization received over the last three years?

None   1 to 5 per year   6 to 10 per year   11 to 20 per year   More than 20 per year

6) On average, how many real estate gifts (in any form, including testamentary) has your organization accepted per year over the last three years?

None   1 to 5 per year   6 to 10 per year   11 to 20 per year   More than 20 per year

7) Over the last three years, what is your estimate of the percentage of total gifts to your organization (measured in dollars) that have come in the form of real estate?

0%   1% to 5%   6% to 10%   11 % to 15%   16% to 20%   More than 20%

8) If your organization does market real estate gifts, please rate the effectiveness of the following strategies for generating real esate gift inquiries.

	Very effective	Somewhat effective	Somewhat ineffective	Not at all effective	We do not use this strategy
Case studies and illustrations in regular magazines, bulletins, annual reports, etc.	Case studies and illustrations in regular magazines, bulletins, annual reports, etc. Very effective	Case studies and illustrations in regular magazines, bulletins, annual reports, etc. Somewhat effective	Case studies and illustrations in regular magazines, bulletins, annual reports, etc. Somewhat ineffective	Case studies and illustrations in regular magazines, bulletins, annual reports, etc. Not at all effective	Case studies and illustrations in regular magazines, bulletins, annual reports, etc. We do not use this strategy
Case studies and illustrations on our web site	Case studies and illustrations on our web site Very effective	Case studies and illustrations on our web site Somewhat effective	Case studies and illustrations on our web site Somewhat ineffective	Case studies and illustrations on our web site Not at all effective	Case studies and illustrations on our web site We do not use this strategy
Seminars for alums/customers/constituents/prospects	Seminars for alums/customers/constituents/prospects Very effective	Seminars for alums/customers/constituents/prospects Somewhat effective	Seminars for alums/customers/constituents/prospects Somewhat ineffective	Seminars for alums/customers/constituents/prospects Not at all effective	Seminars for alums/customers/constituents/prospects We do not use this strategy
Personal visits with prospects identified through research	Personal visits with prospects identified through research Very effective	Personal visits with prospects identified through research Somewhat effective	Personal visits with prospects identified through research Somewhat ineffective	Personal visits with prospects identified through research Not at all effective	Personal visits with prospects identified through research We do not use this strategy
Targeted mailings based on research into prospects' real estate holdings	Targeted mailings based on research into prospects' real estate holdings Very effective	Targeted mailings based on research into prospects' real estate holdings Somewhat effective	Targeted mailings based on research into prospects' real estate holdings Somewhat ineffective	Targeted mailings based on research into prospects' real estate holdings Not at all effective	Targeted mailings based on research into prospects' real estate holdings We do not use this strategy
Publicizing real estate gifts from prominent friends of the organization	Publicizing real estate gifts from prominent friends of the organization Very effective	Publicizing real estate gifts from prominent friends of the organization Somewhat effective	Publicizing real estate gifts from prominent friends of the organization Somewhat ineffective	Publicizing real estate gifts from prominent friends of the organization Not at all effective	Publicizing real estate gifts from prominent friends of the organization We do not use this strategy
Other	Other Very effective	Other Somewhat effective	Other Somewhat ineffective	Other Not at all effective	Other We do not use this strategy

Additional comments:

9) In our experience, donors of real estate tend to be...

mostly women   mostly men   mostly couples acting jointly

10) In our experience, donors of real estate tend to be...

80 years and older   ages 70 to 79 years   ages 60 to 69 years   ages 50 to 59 years   under 50 years   No age trend

11) In our experience, real estate donors tend to own...

one real estate property   two real estate properties   three real estate properties   four real estate properties   five or more real estate properties   No discernable trend

12) Please select the three types of property most likely to be given to your organization. Please select ONLY THREE from the following list.

primary residence   second/vacation home in same state as primary residence   second/vacation home in a state different from state of primary residence   farms or ranches   other undeveloped land   undeveloped land with conservation value   rental residential properties   commercial properties   industrial properties   time shares   Other (please specify)

If you selected other, please specify:

13) In our experience, donors of real esate are most motivated by... (please rank the following factors, with 1 being most important)

1)	Choose OneCharitable intentRelief from headaches of owning and managing real estateAvailable tax deductionsLife incomeOther

14) With regard to accepting title to real estate gifts:

We will accept title, if all aspects of due dilligence check out.   We have a separate affiliated or subsidiary nonprofit organization that accepts title to real estate gifts.   We require that real estate assets be placed into a Limited Liability Corporation, with the shares of the LLC then transferred to our organization.   Other (please specify)

If you selected other, please specify:

15) How frequently does your organization accept real estate gifts in the following forms?

	Very frequently	Somewhat frequently	Rarely	Never
Outright	Outright Very frequently	Outright Somewhat frequently	Outright Rarely	Outright Never
Undivided/fractional interests	Undivided/fractional interests Very frequently	Undivided/fractional interests Somewhat frequently	Undivided/fractional interests Rarely	Undivided/fractional interests Never
Bequest	Bequest Very frequently	Bequest Somewhat frequently	Bequest Rarely	Bequest Never
Charitable gift annuity	Charitable gift annuity Very frequently	Charitable gift annuity Somewhat frequently	Charitable gift annuity Rarely	Charitable gift annuity Never
Charitable remainder trust	Charitable remainder trust Very frequently	Charitable remainder trust Somewhat frequently	Charitable remainder trust Rarely	Charitable remainder trust Never
Bargain sale	Bargain sale Very frequently	Bargain sale Somewhat frequently	Bargain sale Rarely	Bargain sale Never
Retained life estate	Retained life estate Very frequently	Retained life estate Somewhat frequently	Retained life estate Rarely	Retained life estate Never
Retained life estate combined with charitable gift annuity	Retained life estate combined with charitable gift annuity Very frequently	Retained life estate combined with charitable gift annuity Somewhat frequently	Retained life estate combined with charitable gift annuity Rarely	Retained life estate combined with charitable gift annuity Never
Charitable lead trust	Charitable lead trust Very frequently	Charitable lead trust Somewhat frequently	Charitable lead trust Rarely	Charitable lead trust Never

Additional comments:

16) Does your organization have written policies and procedures regarding real estate?

Yes   No

17) Please describe your real estate gift policies and procedures. If you feel there are specific ways in which your policies and procedures could be improved, please click "Other" and specify those ways.

They are clear and helpful.   They are comprehensive.   They have been formally approved by our board of directors.   Other (please specify)

If you selected other, please specify:

18) Please indicate which of the following components are included in your real estate gift policies and procedures (choose all that apply).

Prospects are asked to complete a detailed questionnaire regarding the prospective gift property.   A Phase I environmental assessment is required, at the prospect's expense.   A Phase I environmental assessment is required, at the organization's expense.   An appraisal is required, at the prospect's expense.   Supplemental marketing analysis is required, at the organization's expense.   Title report is required, at the prospect's expense.   Title report is required, at the organization's expense.   Other due diligence investigations are required (please specify in the "Other" field).   A gift acceptance letter or memorandum of understanding is presented to the prospect for signature.   We have a clear procedure for making exceptions to our policies.   Our real estate gifts committee (or equivalent) approves all real estate gift arrangements.   We have a minimum real estate gift size, based on a net present value approach (please specify the minimum in the "Other" field).   We have a minimum real estate gift size, based on the full market value of the real estate in question (please specify the minimum in the "Other" field).   We have adopted other important policies or procedures (please specify in the "Other" field).   Other (please specify)

If you selected other, please specify:

19) With regard to real estate gift acceptance policies, please choose all that apply.

Life income arrangements funded with real estate are generally credited based on the full fair market value of the real estate.   Life income arrangements funded with real estate are generally credited based on a net present value approach.   Retained life estates are generally credited based on the current fair market value of the real estate.   Retained life estates are generally credited based on their actuarially-determined gift value.

20) With regards to charitable gift annuities funded with real estate, please choose all that apply. If you have other observations regarding real estate in charitable gift annuities, please specify them in the "Other" field.

We don't do CGAs funded with real estate.   We suggest a rate less than that otherwise suggested by ACGA, to account for the complications of a real estate gift.   We suggest deferring annuity payments at least one year to assure that we can liquidate the property prior to commencement of annuity payments.   We will only do a real estate CGA if we can close on the sale of the property at the same time that we accept title to the gift property.   We find that older donors of real estate looking for life income are attracted to the relative simplicity and fixed rates of a CGA, as compared to a CRT.   Other (please specify)

If you selected other, please specify:

21) With regard to charitable remainder trusts funded with real estate, please choose all that apply. If you have other observations regarding real estate in charitable remainder trusts, please specify them in the "Other" field.

We don't do CRTs funded with real estate.   We will only do a CRT funded with real estate if it is a "flip" trust.   We ask donors to self-trustee, at least through the process of selling the real estate.   We prefer to trustee the CRT ourselves, in order to maintain control and be sure everything is done "right."   We will serve as trustee of a CRT only if our organization is recipient of at least a minimum percentage of the remainder interest.   We will serve as trustee of a CRT only if our organization is projected to receive net proceeds in excess of our real estate gift minimum.   We will accept the funding of a CRT with an undivided fractional interest in real estate in certain circumstances.   Other (please specify)

If you selected other, please specify:

22) With regard to retained life estates (also known as reserved life estates), please choose all that apply. If you have additional observations regarding retained life estates, please specify them in the "Other" field.

We don't do retained life estates.   We will only do a retained life estate if we keep ownership of the property for our own use.   We will only do a retained life estate if the life tenant(s) are at least of a minimum age.   We will only do a retained life estate if the property is within a certain distance of our offices.   We require execution of a side-agreement detailing the parties' responsibilities regarding repairs, maintenance, major improvements, incompetence or incapacity, vacating the property, etc.   We would consider using a remainder interest to fund a charitable gift annuity, providing life income for the life tenant.   Other (please specify)

If you selected other, please specify:

23) With regard to real estate bargain sales, please choose all that apply. If you have additional observations regarding bargain sales, please specify them in the "Other" field.

We don't do bargain sales.   We will do a bargain sale only if we can close on the sale of the property at the same time we are closing on the purchase of the property.   We will do a bargain sale based on particular circumstances of the proposed gift.   Other (please specify)

If you selected other, please specify:

24) If your organization conducts capital or other multi-year campaigns, how would you characterize the role of real estate gifts in those campaigns? Choose all that apply.

We do not conduct capital or multi-year campaigns.   We specifically investigate the potential for real estate gifts in campaign feasibility studies.   We build real estate gifts capacity into the structure of the campaign.   We actively solicit real estate gifts in campaigns.   We accept real estate gifts in campaigns, but we don't solicit them.   We don't accept real estate gifts in campaigns.   We expect that real estate gifts will be increasingly important to the success of future campaigns.   Other (please specify)

If you selected other, please specify:

25) Which of the following types of organizations is your primary employer?

Public University   Private University   Small College   Community/Junior College   Academy/Private School   Hospital/Health Care Organization   Religious Organization   Social Services Organization   Environmental Group   Community Foundation   Museum, Symphony, Arts/Cultural Organization   Private/Family Foundation   Continuing Care Community/Facility   International Aid/Education Organization   Other (please specify)

If you selected other, please specify:

26) In what state is your organization headquartered?

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareD.C.FloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingCanada

27) What was the annual operating budget of your primary employment organization in the latest completed fiscal year?

$1,000,000 or under   $1,000,001 to $10,000,000   $10,000,001 to $50,000,000   $50,000,001 to $100,000,000   $100,000,001 to $200,000,000   $200,000,001 to $500,000,000   More than $500,000,000   Do not know

28) What is your job title? Choose the option that most closely matches your title.

Director of Development (including executive, senior, assistant, associate, etc.)   Director of Gift Planning (including executive, senior, assistant, associate, etc.)   Gift Planning Officer   Director of Major and Planned Giving (including executive, senior, assistant, associate, etc.)   Major and Planned Giving Officer   Development Officer   Executive Director   President/CEO   Vice President (including executive, senior, assistant, associate, etc.)   Chief Financial Officer   Other (please specify)

If you selected other, please specify:

29) What would be needed in your organization to increase real esate gift activity in the years ahead? Choose all that apply.

Training of development staff   Training of trustees   Training/acceptance of Finance Office   Revised policies and procedures   Workshops or other outreach to prospects   Workshops or other outreach to professional advisors   Marketing of real estate gifts in various forms   Other (please specify)

If you selected other, please specify:

30) If you are willing to discuss your experience with real estate gifts with the members of the task force that will analyze this survey, please provide your name, organization, phone number and e-mail address. Thank you!