Originally published: May 6, 2021
Updated: Jan. 6, 2026
When contemplating his charitable legacy, CPA Scott Shackleton had always planned to start an endowment at NCCF with a gift through his estate. However, a strong real estate market led Shackleton to determine it would be advantageous to donate a rental condo he owned in Carolina Beach sooner, allowing him to take a significant tax deduction and enjoy giving from a donor advised fund during his lifetime.
How did you approach your charitable giving? Did you have a plan for what type of gift you wanted to make or when you wanted to make it?
My initial plan was to establish a ‘shell’ endowment fund to receive assets after I died, an estate planning tool that would allow my children the opportunity to advise grants to nonprofits and introduce them to philanthropy after I am gone. Then, I thought through the benefits of making a gift of appreciated real estate to start the fund in a tax-advantaged way while I’m still alive, and decided it was a step I wanted to take to get the fund started. I decided to move forward with starting the DAF during my lifetime, still with the goal of eventually involving my kids in advising grants.
How did it benefit you to make a gift of real estate?
I have to start out by saying that although I’m a CPA, I am not giving tax advice to others. Everyone needs to consult their own CPA.
My condo had a very low tax basis for various technical reasons and was worth significantly more than my basis. Had I sold it, I would have had to pay a large amount in tax, say roughly $100,000 on a $300,000 condo. If I had sold the condo and paid the capital gains tax, I would have only had $200,000 to add to my donor advised fund. However, by working with NCCF, I could donate the condo and avoid paying the capital gains tax, plus get a tax deduction of the fair market value. My income is such that it would have taken about three years for me to use up a portion of that deduction each year.
I was able to place the full $300,000 in my DAF at NCCF, allowing me to grant more to nonprofits every year than if I had sold it first.
Scott Shackleton
I’ve shifted my charitable giving from my regular budget to the donor advised fund and I’ve paid less in income tax for several years as a result of the gift.
Anyone with appreciated real estate who plans to give money to charity, should ask their CPA about this approach. It was truly a win-win for me. It allowed me to pay far less in taxes and give more to charities that are doing really good work in the community and world. I think being strategic is important, especially when it comes to money for the good of the community.
What was your experience like to donate the condo to NCCF?
It was a great experience. Everyone worked hard to communicate clearly and promptly to make sure there were no “hitches” or last-minute surprises. We set a date to do the transfer far in advance, which I think helped. There was some paperwork to sign. I had to get an appraisal which set my tax deduction amount, and then the eventual sale price set the amount in my DAF. Slightly over a year later, I was able to begin making grants. It was easier than if I had sold the property myself because NCCF took care of the listing with a realtor, etc. I have recommended NCCF to several friends, and I know at least one family that has set up an endowment fund.
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
January 6, 2026
For many donors, the most significant part of their net worth is real estate. As is the case with gifts of other long-term capital gains assets, real estate can be a very tax-efficient asset to use for charitable gifts.
