Land donors: practical steps to donate land wisely

Thinking about donating land? Donating property can help a cause you care about and bring tax benefits, but the process has traps. This guide walks you through the real steps land donors should take — from checking who will accept the land to the paperwork and tax forms you’ll need.

First checks: who accepts land and why it matters

Not every charity or nonprofit can accept raw land. Many hospitals, schools, and small nonprofits avoid property that needs cleanup, taxes, or upkeep. Start by asking the organization if they accept land gifts and why. Ask for a written acceptance policy. If they accept, find out whether they plan to hold, sell, or place an easement on the land. That matters for your taxes and theirs.

Also check zoning, access, and utilities. Does the parcel have legal road access? Are there liens, unpaid taxes, or zoning limits? A title search and short survey can reveal problems before you commit.

Steps land donors should follow

1) Get a current title report and clear any liens. Donors usually must give clear title. Unresolved mortgages or tax liens complicate the gift and can stop it entirely.

2) Order an appraisal. For tax deductions over $5,000 you’ll need a qualified appraisal and Form 8283 for the IRS. The appraised value sets the starting point for tax benefits.

3) Do an environmental check. If the land once hosted industrial use or has contamination risks, many charities will refuse it. A Phase I environmental site assessment is a common and practical step.

4) Decide how to transfer ownership. Most donors use a deed transfer. Work with a real estate attorney to draft the deed, handle title insurance, and record the transfer correctly in your county.

5) Consider alternatives like a bargain sale or charitable remainder trust. A bargain sale (sell at below market price) gives you partial cash and a tax deduction. A charitable remainder trust can provide income now and give the property to charity later.

6) File the right tax paperwork. For gifts over $5,000 you’ll attach Form 8283 to your tax return. If you claim a deduction over $500,000, the IRS has stricter rules and documentation requirements. Talk to your tax advisor early.

7) Keep clear records. Save the appraisal, correspondence with the charity, the deed, title reports, and the environmental review. This paperwork protects you if questions arise later.

Quick tips: talk to a real estate attorney, a CPA familiar with charitable gifts, and a licensed appraiser. Don’t let a charity pressure you into a rushed transfer. If a land donation creates unexpected costs for the charity, the gift may not be a win for anyone.

Donating land can make a big impact when done right. Do the basic homework, document everything, and get professional help early. That way you give confidently and avoid surprises down the road.