Can You Donate Timeshare To Charity
The short answer is yes you can and a lot of people will advise you to donate timeshare to charities. But it is not quite as easy as that. You may find that a lot of charities will not accept timeshare donations any more. Those that do have become more discerning and will check the situation regarding fees, outstanding mortgages, liens or loans. Only unencumbered units will now be accepted.
Why would anyone want to donate a vacation unit? The majority of people are donating for one of two reasons. They can’t sell the timeshare, find it a hassle and want to be rid of it. The more common reason is the persistent rumour that you can save huge amounts of tax by donating rather than selling.
If you wish to donate your condo in return for a tax deduction there are a couple of issues you should bear in mind. You cannot just donate this year’s week and expect a write off. Although tax is a complicated area and you should seek professional advice, it is generally accepted that the Revenue doesn’t allow deductions for “gift of use” of a vacation home.
If you are donating the complete timeshare, you may need to obtain an appraisal of fair market value. This is required if the fair market value of the donation exceeds a certain amount. The cost of the appraisal can be anything from $300 to $1000 so it pays to shop around although make sure that the appraisal company is recognised by the Revenue.
The majority of timeshare owners would be better off selling and then donating the proceeds to charity as there would be no requirement for an appraisal and you get 100% of the money not a percentage tax write off.
But if you decide that you wish to donate you must follow these simple steps:
1) Contact your chosen charity and make sure they will accept the donation.
2) You will need the original contract, confirmation that all charges are paid and up to date, a nominal transfer fee usually less than $100 and the address details of the charity to whom the donation is being made. Your timeshare resort will ask you to sign to confirm that you wish to donate and that should be the end of the matter.
3) Your tax advisor will help you complete the necessary forms to claim your deductions. You should really do some research on whether your donation will quality as a tax write off before making your decision as tax rules differ from country to country and from state to state.
Please remember that until the transaction is completed, you are responsible for all ongoing costs for your timeshare. Fortunately these transactions are usually concluded very quickly so this should not be an area for concern.
It is worth bearing in mind that some charities don’t try to sell on the timeshare. They will raise cash by renting the timeshares. Some charities also use timeshares to provide rehabilitation and recuperation time to people who are seriously ill. I hope that this helps you with your decision to donate timeshare to charity.