SYSTEMS AND METHODS FOR ENABLING CHARITABLE CONTRIBUTIONS FROM PROPERTY

• US 20070203825A1
• Filed: 10/25/2004
• Published: 08/30/2007
• Est. Priority Date: 10/24/2003
• Status: Abandoned Application

• Current Assignee: Charitable Property Donations
• Original Assignee: Charitable Property Donations
• Inventors: Jahn, Gretchen, Ashworth, Karen, Hanifin, James
• Application Number:
  US10/904,122
• Publication Number:
  US 20070203825A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Systems and methods that provide new methods of charitable giving that increase the flow of contributions from donors to charities. In this way, the present invention helps many charitable causes that are desperately in need of financial support. Most wealth is in real estate, and the new form of charitable giving in accordance with the present invention allows individuals and companies to donate a donor-selected portion of this illiquid asset. A charitable giving liaison organization, in some cases in partnership with an investment bank or any other third-party investor, provides the service to transform this illiquid real estate donation into a liquid donation for the charities and the donors. The charitable giving liaison organization may be a for-profit organization.

Claims

1. A method of charitable giving comprising:

providing a donor with an ownership interest in a property, wherein the property is suitable as collateral for a loan;

generating a loan of an amount of money from a funding source, wherein the loan is secured by the donor'"'"'s ownership interest in the property;

gifting at least a portion of the proceeds from the loan to one or more charitable organizations; and

generating a tax benefit to the donor corresponding to the gifted portion of the loan.

2. The method of claim 1 wherein the act of loaning the amount of money comprises:

causing the donor to submit an application to a charitable giving liaison organization;

using the charitable giving liaison organization to document the application; and

underwriting the loan using information from the documented loan application.

3. The method of claim 2 wherein the funding source comprises one or more entities selected from the group consisting of:

a charitable giving liaison organization, investment bank, commercial bank, mortgage company, investment trust, individual, and investors.

4. The method of claim 1 wherein the gifted portion of the loan is less than the amount of money loaned.

5. The method of claim 1 further comprising:

causing the donor to make periodic payments to the funding source, wherein a portion of the periodic payments is tax-deductible to the donor.

6. The method of claim 1 further comprising:

repaying principal due to the funding source upon a transfer of the property.

7. A financial product made by the method of claim 1.

8. A business system for charitable giving comprising:

a funding source;

a donor owning property;

a charitable organization; and

means for generating a loan of funds from the funding source to the charitable organization, wherein the loan is secured by a note from the donor and a security interest in the donor owned property.

9. A method for providing a charitable donation liaison service comprising:

contacting a charitable organization;

contacting donors having property assets from which they desire to make charitable gifts;

accepting an application from the donor, the application indicating information about the donor'"'"'s identity, social security number, donor'"'"'s stated income, collateral identity, stated value of the collateral, and amount of the loan;

documenting the donor'"'"'s application; and

causing a funding source to provide an amount of liquid assets to the charitable organization resulting in a corresponding tax benefit for the donor.

10. The method of claim 9 wherein contacting donors further comprises contacting third party fund raiser, estate planning attorney, accountant and/or financial advisor.

11. A method of operating a lending entity to benefit charitable organizations, the method comprising:

accepting a loan application from a donor;

determining whether to approve the loan application;

upon approving the loan application, securing the loan using property owned by the donor; and

disbursing funds to a charitable organization, whereby the donor receives an immediate tax benefit as a result of the funds received by the charitable organization.

12. The method of claim 11 wherein the property comprises real estate.

13. The method of claim 11 wherein the donor has an equity interest in the property that exceeds fifty percent.

14. The method of claim 11 wherein the loan accrues interest until the loan is repaid.

15. The method of claim 11 wherein the loan requires periodic payment of interest until the loan is repaid.

16. The method of claim 11 wherein the amount of funds disbursed to the charitable organization is discounted from the amount of the loan by an amount selected to reduce interest due on the loan.

17. The method of claim 11 wherein the loan requires repayment upon change of ownership of the property and/or refinancing of the property.

18. A method of operating a charitable organization comprising:

receiving a request from a donor, wherein the request states a desire on the part of the donor to make a gift to the charitable organization based on wealth that is held in property owned by the donor;

causing the donor to obtain a loan for specified funds from a funding source that is secured by the property owned by the donor; and

receiving the specified funds from the funding source.

19. The method of claim 18 wherein the donor receives a tax benefit as a result of the receipt of the specified funds from the funding source.