Donating Cashflow to the Navy Marine Corps Relief Society

[Padric Lynch]

BP,

I am an investor and a Marine in the Eastern North Carolina area, specifically Newport, NC. MCAS Cherry Point and Marine Corps Base Camp Lejeune are the military installations in this area.

 I have been bouncing around in my head the idea of using a real estate rental to provide sustained contributions to a charitable organizations. After learning about all the services and support that the Navy Marine Corps Relief Society (NMCRS) provides to military families, I wanted to find a way to contribute to their cause, while leveraging the real estate skill set and relationships I have created during the last couple years. The NMCRS depends almost solely on allotments paid directly from a service members paycheck or from one-time donations. Their loans are 0% interest and most of the loans turn into grants that do not have to be paid back, depending on the situation. 

If I could provide a rental property (or two or three) whose sole purpose is to donate its cashflow every month to NMCRS, this could help shift the cost of the donation from my paycheck to a renter, who is also benefiting from the situation by having a place to live. The property would have a very conservative reserve account to begin with, to ensure its stability and self-sufficiency. Capex, maintenance, vacancies, property management, insurance, debt service (if any), you name it, would be factored into the reserves. The property's equity would also belong to the organization, and a lump sum would go to the NMCRS when the property is sold. I would want to simply be the orchestra-tor in all of this, using little or none of my own money. I would like to fund the down payment or the cost of the whole deal with donations from friends, family, other investors, partners, etc. This all sounds good in theory. However, I am looking for the nuances in the process: the legality of soliciting for funds, the pledge or guarantee of the property to only be used for its intended charitable use, the taxes, the relationship with the NMCRS, and anything else I am not considering.

I feel a call to action, an obligation to put my energy and know-how into something that will directly benefit service members, but I do not have a clear road map to execute it in the way that I would like to. I am not afraid of taking on some risk. I trust that I will buy a property (located in New Bern, Havelock, Newport, Morehead City, or Jacksonville, NC) that will make sense or partner with someone who will intentionally discount their property in order to contribute to the cause. In the case where Murphy's law shows face or a disaster strikes, I would eat the costs. The purchase, reserves, and insurance, would hedge against any potential risk.

I wanted to know if anyone has done something like this? If so, how did they go about organizing it? Any insights or input would be greatly appreciated. Thank you.

-Paddy