Originally Posted by WestLake
I'm seeing that some require a 5% minimum payout. Say you have an appreciated asset like a fully-depreciated rental property that would cost you a fortune in taxes to sell if you don't want to do a 1031 Exchange to stay in the rental business... Giving that to say, a university which pays you 5% and you get a tax deduction (not sure how that works) sounds pretty good.
I'd be skeptical until I compared the after-tax yield on the property (say, if the after-tax funds were invested in a SPIA) to whatever the non-profit was offering.
Even then I'd still be tempted to put the money into a REIT.
Everybody thinks depreciation recapture is a bad thing, but it's just a different tax to be paid in order to convert the asset into some other sort of asset.