5 Steps to Donating Land to Charity
If you own land that no longer fits your plans, donating it to charity can be an incredibly meaningful way to put it to use. Whether the land has been sitting untouched for years or has become a financial responsibility you no longer want to carry, turning it into a charitable gift can bring both relief and purpose. Here is a clear look at the steps involved in making a land donation.
This guide walks you through the five steps involved in donating land so you know exactly what to expect from start to finish.
Step 1: Check That Your Land Qualifies
Before beginning the donation process, it is important to confirm that the land is eligible. A donation partner or nonprofit will look at several factors, including legal ownership, access, and environmental conditions.
You will need a clear title to the property. This means the land cannot have unresolved liens, back taxes, or ownership disputes. Accessibility also matters because most organizations require parcels that can be accessed by road or have an established easement.
Environmental concerns such as contamination, flooding, or erosion may require review before your donation can be approved. If you are unsure whether your property qualifies, the team at Giving Property can evaluate your parcel and walk you through any requirements
Step 2: Choose a Qualified Charity or Donation Partner
After confirming that your land is eligible, the next step is selecting where you want the donation to go. You can give land directly to a nonprofit organization, or you can work with an intermediary that specializes in real estate donations.
If you want to donate directly, make sure the organization is a qualified 501(c)(3) charity recognized by the IRS. Only donations made to qualified nonprofits are eligible for tax deductions. It is also important to confirm that the charity is prepared to receive real estate gifts. Many organizations do not have the internal staff or expertise to manage appraisals, title work, environmental reviews, or resale of donated land.
Real estate donation partners exist to simplify this process. These organizations, such as Giving Property, handle the complex parts of the donation so the nonprofit can focus on using the proceeds to further its mission. Donation partners coordinate title transfers, environmental checks, property evaluations, and closings, making the experience easier for donors and charities alike.
Working with an experienced partner ensures your gift is handled professionally, and it gives you the flexibility to direct the proceeds to the nonprofit of your choice. It also eliminates the stress of figuring out legal and logistical details on your own.
Step 3: Obtain a Fair Market Value Appraisal
A major benefit of donating land is the potential to receive a charitable tax deduction. However, to claim this deduction, the IRS requires a qualified appraisal for most land valued above five thousand dollars.
The appraisal must be completed by a qualified, independent appraiser who has experience valuing land in your region. This individual must follow IRS standards and be familiar with the requirements for noncash charitable contributions. An appraisal that is incomplete, outdated, or performed by an unqualified appraiser may be rejected by the IRS.
Timing also matters. The appraisal must be dated no earlier than sixty days before your donation and must be completed before you file your tax return. Because appraisal scheduling can take time, it is wise to arrange this step early in the process.
If you need help finding an appraiser who meets IRS guidelines, the Appraisal Institute maintains a national directory of accredited professionals.
The value established in your appraisal helps determine the amount you can claim as a deduction, making this step essential for your tax records.
Step 4: Transfer the Land Title
Once the appraisal is complete and the recipient organization has formally accepted your land, you will move into the title transfer phase. This step legally transfers ownership of the property from you to the charity or donation partner.
Title transfer involves preparing a new deed, signing the document, having it notarized, and officially recording it with the county where the land is located. Different states and circumstances may call for different deed types. These may include warranty deeds, grant deeds, or quitclaim deeds. The receiving organization will advise you on which type is appropriate based on title history and local requirements.
If you are working with a donation partner, they will typically prepare all documents, coordinate with a title company, and ensure the deed is recorded correctly. This helps avoid common mistakes such as incomplete signatures, incorrect legal descriptions, or missing attachments.
This phase of the process is often easier than expected because much of the work is handled on your behalf. Once the deed is recorded, ownership officially passes to the recipient, and your obligations as the owner come to an end.
Step 5: File for Your Tax Deduction
After your land has been transferred, the final step is to claim your charitable deduction. For contributions valued at more than five thousand dollars, the IRS requires the submission of Form 8283 along with your tax return.
Form 8283 includes an appraisal summary and must be signed by both you and the appraiser. If you are donating land valued at over $500,000, you must also attach a full copy of your appraisal to the return.
To support your deduction, keep a copy of your appraisal report, acknowledgment letter from the charity, and the recorded deed. These documents verify your contribution and ensure that your deduction is processed smoothly.
Filing correctly helps you maximize your tax benefits and ensure compliance with IRS rules.
Donating land is a meaningful way to create impact while freeing yourself from the responsibilities of ownership. When you donate through a qualified charity or a trusted donation partner, you can ensure that your property is used in a way that reflects your values and supports important work in communities across the country.
If you are ready to begin the process or have questions about whether your land qualifies, you can start your donation through the Giving Property team. Connect here to take the first step.
We are here to help you turn your land into a lasting charitable impact.