A timeshare is nothing but property which is has multiple owners. The parties which are owners of a particular property claim the partial ownership for a particular period of time and hand over the right to the other parties. This time period can be as rotation or a particular period every year. The ownership will be limited or like lease and they cannot be the sole owners even during that time.
Donate Timeshare to Charity Methods:
There are many ways to donate timeshare to charity which are given below.
Sale to relative or friend
You can find a relative or friend who wants to take the timeshare and if you think that he makes the right use of it you can go ahead with the transfer of the ownership officially.
Donation to a charity
Check with the charities if they accept timeshare donations. The charities use such donations to raise funds by renting them or giving the property on lease in auction. Some charities have constraints to take the ownership and hence may help to sell it.
In such a case keeps the money as a donation and the donor will be benefited with the tax deduction. To avail this benefit the donor has to take a receipt from the charity without fail. Many big charity organizations take the help of third parties to handle these transactions.
Instructions for tax deductible if you want donate timeshare to charity:
- Be sure that you have the copy of the deed and other documents required for the timeshare donation. You need to give away the copies of all the documents that you presented at the time of procuring the timeshare to the charity.
- Keep in mind to ask the charity to estimate the value of the timeshare for availing the tax benefits. This required showing as evidence that you have donated a timeshare of that much value.
- Discuss with the other owners of the property before you donate your timeshare. It is simpler to donate the timeshare rather than selling it at a lower price than the price you have paid to procure it.
- Try to pay the fees of the broker yourself so that the donation to the charity has a meaning. This may be between 300$ to 1000$ depending on various factors.
- Do good research of the charities which accept timeshare donations. You need to check their credibility as they may use this for the generations of funds. These funds may be used for the charity programs they undertake.
- You may consider a non-profit organization which has ties with many charities. You can get the information online to know such organizations. Look for non-profit organizations which are in the neighboring areas. There may be real estate groups which work for a good cause which give you information about such organizations which are on a look out for donors.
Why Donate Timeshare to Charity:
There are a number of timeshare owners who want to sell their timeshares. The listing companies take care of the sales of timeshares. But they take 400$ to 700$ to list their timeshare for a year. They make the owner believe that the resale price of the timeshare is very much higher than the price at which it has been bought. But once it is listed the timeshare will not be sold because of the high price quoted. After one year the listing company will demand for the fees again.
The owner has to pay without any assurance that the timeshare will be sold at least that year and besides that he had to pay for the maintenance of the timeshare. Finally what happens is that the owner spends more than what the timeshare actually fetches him.
Instead of going for the sale of the timeshare if you donate it to the charity, the charity can generate funds or use the timeshare for itself and you also can avail the tax benefits. So it is a win-win situation for both the parties. If the value of your timeshare is more than 5000$, make sure that you get an estimate of the value done before donating it as it is needed to avail tax benefits.
Take care that you are not charged any fees because it has to be done for free to the donor lest the deed is lost or substituted or the owner had died and his name has to be eliminated. It is the duty of the donor to see the maintenance of the timeshare or any other costs involved until the process is finished.