If you invested in a partnership to share in the initial tax losses generated in its early years, you may want to consider donating your interest once income starts flowing to the partners.
How It Works
Gifts of transferable partnership interests—primarily in real estate or business interest—can be made outright to The Nature Conservancy. In some cases they may also be used to fund a gift that pays you income, such as a charitable remainder unitrust.
Here's the process:
- You convey a partnership interest to TNC.
- Depending on the circumstances, TNC may choose to continue the partnership interest or to sell it and use the proceeds for its programs.
- Receive gift credit and an immediate income tax deduction for the appraised value of the donated partnership interest, net of any liabilities that might pertain to it.
- Know you have made a significant gift that benefits both you and TNC during your lifetime.
- Under certain conditions, gift a partnership interest to gift that pays you income.
Can It Work for You?
A gift of partnership interest may be for you if:
- You hold an interest in a real estate or other investment partnership.
- You invested to share in the partnership's initial tax losses, which have now ended.
- The partnership no longer fits your investment strategy.
- You no longer want to receive taxable income from the partnership.
- The partnership agreement permits you to transfer your interest to third parties like TNC.
- Your partnership interest is not encumbered by debt.
Because of the technicalities involved, some precautionary steps must be taken. You should first determine if the partnership allows shares to be transferred. Gifts of partnership interests involve The Nature Conservancy in issues of marketability, taxation, liability, and the potential of later assessments by the partnership, and so the transfer must be reviewed and approved.
Be sure to first consult with your attorney and accountant to ensure this is an advantageous gift for you. We can work with them to review the benefits and procedures of making a gift.
Rachel Carson's Legacy Gift
Renowned conservationist Rachel Carson donated the royalties from "Silent Spring" to help protect her beloved coast of Maine.