Description

Real Estate is an acceptable asset to be owned by Canadian Charities and Foundations. Real Estate’s unique features and attributes, however, must be given due attention when a Charity or Foundation owns it or transacts in it. This report provides a concise overview of these issues and presents a statistical analysis on the prevalence of this asset in the charitable sector.

We begin by presenting the advantages and dis-advantages to a Charity of owning Real Estate or transacting in it. We also present several issues to be considered by a donor and a Charity when making or receiving a gift of land or property.

Fundraising is also often attached to the acquisition or development of real estate. We present the issues to be considered by a Charity when embarking on a Capital Campaign for this purpose.

We provide analytical insights through the following studies:

• The number and proportion of Charities which report owning Real Estate (2016 to 2020).
• The Total Value of Real Estate holdings held by Charities and growth in that asset class from 2016 to 2020.
• The Total Value of Real Estate holdings relative to Total Assets of those Charities and Foundations that report such holdings.
• The number and percentage of Charities which report earning Income from Land and Buildings.
• The Gross Rental Income from Land and Buildings reported by Charites for each of the five years from 2016 to 2020.
• The Total Rental Income from Land and Buildings as a proportion of Total Revenue for those organizations that report earning such income.
• For those Charities which report earning Income from Rental of Land and Buildings, the percentage of this revenue source relative to their Total Donations.
• A breakdown of Real Estate owned by Charities by Category of Charity.
• A breakdown of Rental Income from Land and Buildings by Category of Charity.
• A breakdown of Real Estate owned by Charities by Province.
• For those Charities which report owning Real Estate, the percentage of their Total Assets held in Real Estate for each of the five years from 2016 to 2020.
• For those Charities which report earning Income from Rental of Land and Buildings, the percentage of their Total Revenues which come from this revenue source.
• A listing of the Top 10 Large Charities and Top 20 Small Charities holding Real Estate.