Corporate Matching Funds-

[Kathy Utiss]

I started a non-profit with the aim to end homelessness in America. I work with a company that does corporate matching funds. This is done via IRS Code 7702. As a non-profit I'm suppose to help benefit society. With group I work with their able to accept donations like an IUL or Whole Life Policy. North American does provide both the IUL opens in amounts of $25,000

I'm working with my 1st client and trying to see who has experience in working with these. 

My understanding is that the owner/seller of a property should put it into a Charitable Remainder Trust before signing a donation or sales contract with me. The seller had wanted to put funds into a 1031. Does the corporate donation procedure require the charitable remainder trust? As they mentioned if paperwork not done properly prior to sale IRS could unwind transaction.

I do have my info out for a loan. They have said no as I'm a nonprofit. They are supposed to see if they submit in just my name if a lender will do or not. If not the seller is willing to see if his bank will do anything to assist. The goal for the loan is so I have the funds to put thru double the donation to pay off the seller. Then we would have funds to build more funds to pay off bank. It's also my understanding that the property will need to have appraised value as well before going into the CRT. 

The benefit to seller in working with me is that he donates or sells a property that no one else has shown an interest in buying. I checked with section 8 to see rental income on efficiencies. The hotel is 28 units the section 8 income($675) would make it cash flow. As it hasn't for at least 2022,2021 from what I've seen.  I'm just trying to give him honest answers and not mess anything up. As this could be a good start for me cause he has more he'd like to sell. 

With my nonprofit that is one way to work with sellers. With buyers it's my understanding that I can offer a deferred payment mortgage. Say a buyer finds a property to buy. The purchase price is $2m buyer donates $1m then after utilizing double the donation buyer receives $2m to pay down on purchase price. Then I give deferred mortgage that covers principal and interest. Buyer holds with section 8 income from tenants. 

If I get this right I think it will be so beneficial for so many as prices are only going up for everyone! Thanks to all who help answer :)