In August, Sharing Connexion completed a 2-year project with Children’s Hospital Colorado Foundation under the Real Estate Donation program. This program is intended to empower nonprofit fundraising through the facilitation of real estate donations. Donations of real estate can have hidden potential to increase nonprofit funds. By partnering with Sharing Connexion, we explore the property’s highest and best use, make necessary improvements, and market the property for maximum potential.
Read the below case study to learn more about this landmark project, and contact Sharing Connexion staff to learn more about how you can grow your mission through donations of real estate.
Children’s Hospital Colorado Foundation (CHCF) was named as a testamentary beneficiary for a 25-acre site and house in Estes Park, Colorado. Its original plan was to immediately sell the property and convert it into cash, listing it for $565,000. After listing, a prospective buyer discovered material building code violations and the foundation considered reducing the listing by $100,000, a fire sale price. At this point, CHCF met with Sharing Connexion to discuss their options.
“Children’s Hospital Colorado Foundation conducted several meetings with Sharing Connexion and decided to move forward with them to potentially maximize this gift. By using their expertise, we felt that the project would not pull us away from our primary job – which is to fundraise. We left it up to Sharing Connexion to work with the local city and county governments to bring this project to fruition,” explains Steve Shineman, Senior Vice President at Children’s Hospital Colorado Foundation.
Sharing Connexion took title to the donated property in May 2018, subject to a deed of trust (lien) for the benefit of the foundation. The deed of trust protected the foundation’s interest in the property and disposition proceeds. Sharing Connexion funded all required improvements, cured all building code violations, subdivided the property into four lots, constructed road improvements and undergrounded utilities. To finance these improvements and manage the process, Sharing Connexion invested over $230,000 and over 200 hours in unpaid labor.
“Most nonprofits do not have the in-house expertise and capacity to manage complex real estate donation projects like this or the policies in place to take risks or tie up financial resources in a real estate project. This is why we exist! It was our pleasure to partner with Children’s Hospital Colorado Foundation to see this project reimagined and further enhance their fundraising,” says Sharing Connexion’s Founder, Ed Anderson.
In October 2019, the house sold for $529,000. The first lot sold a month later for $350,000. The last two lots were sold for $315,000 and $250,000, for a combined total of over $1.4 million in sales. The result is over $1 million of net proceeds to Children’s Hospital Colorado Foundation – doubling the donor gift impact! Additionally, Sharing Connexion received approximately $110,000 toward its Capital Fund for mission-driven programs. These programs direct key funding toward affordable housing and nonprofit real estate projects, thus creating even more community value!
“Children’s Hospital Colorado Foundation could not be happier with the final result of this project and cannot imagine how it could have gone any better. We hope to be in a position in the future to partner with Sharing Connexion again on any potential future real estate gifts to help maximize the impact to Children’s Hospital Colorado,” says Steve Shineman.
