He makes a charitable donation at Christmas on behalf of the tenants and sends a copy of the thank-you letter to each tenant.

There are most likely charitable organisations in your area that can assist you in this endeavor as opposed to investors.Charity and business are at opposite ends of the spectrum.

You can look at other tax planning options if you do not plan to remain in real estate such as: Selling/cashing out and paying the taxes Selling with a seller carry back note (defer some of the taxes over the term of the note) Selling through a Charitable Trust (avoid the payment of most if not all taxes)What are your goals and objectives?  

The property was owned by a charitable organization that housed needy families who didn't pay rent, or paid very little and received section 8 help.Unfortunately, the remodel has taken a little longer than I expected but I am sure that with a little patience, I will get them rented. 

My hobbies include reading the paper and donating to various charitable causes.Looking forward to connect with more investors active in the Midwest. 

If you want to also give on some rent and take a charitable deduction ( check with your CPA) that might be a nice thought.

Yes, we run our rentals as a business, but even businesses make charitable donations.We will never be big players like many here on BP, nor do we want to be.

You can, of course, keep exchanging until you die or do some complicated things with charitable trusts, but the jist here is that the tax man cometh no matter what.1031 exchanges can be really useful tools for deferring tax burden and maximizing the buying power of your current capital.

Do I need to go through a charitable organization?

My new goal is $300,000 annual income from investments, of which at least 30% will be for charitable contributions.