A recent check stub
It shows the operator, the well and your decimal interest.
Donate mineral, oil and gas rights or royalty interests to charity
Mineral rights specialists: (888) 228-7320
Donate Mineral and Gas Rights to Charity
Mineral rights, royalty interests and oil and gas interests are often inherited in small fractions, spread across several states and paying small, irregular checks. Real Estate with Causes reviews donations of severed mineral interests and royalty interests nationwide, producing or not. How the interest is held decides whether a gift qualifies for a deduction, so we look at the deed first.
Tell us about the interest
Every property gets a look. Name, phone and email are the only required fields.
Fully IRS Compliant
We Handle the Paperwork
Form 8283 Done Right
501(c)(3) Recognized Charity
What kind of interest you hold
A mineral interest is ownership of what lies under the surface, often severed from the land long ago. A royalty interest is a share of production revenue without the right to lease. A working interest carries a share of drilling and operating costs, which makes it a different kind of gift.
Severed interests
If the minerals were already separated from the surface before you owned them, you can donate your whole mineral interest outright, and it can qualify for a deduction.
Keeping the surface
If you own both and donate only the minerals, that can be a partial interest that generally does not qualify. Your advisor should look at this first.
How mineral interests are valued
Producing interests are usually appraised on their expected future income, using the operator’s production history. Non-producing interests are valued on lease bonus and comparable sales in the area, which can be modest or significant depending on activity.
For an interest held more than a year, the deduction is generally its appraised fair market value, limited to 30% of AGI with a five-year carryforward. Depletion you have taken may affect the calculation.
What to have ready when you call
Royalty owners usually have more paperwork than they realize.
The deed or division order
How you acquired the interest and exactly what it covers.
Any current lease
Lease date, term, royalty rate and lessee.
Mineral rights donation questions, answered
Can I donate a very small fractional royalty interest? +
Often, yes. Small inherited fractions are common. What matters is whether the interest has value relative to the cost of transferring it. Send a check stub and we will review it.
Do I have to own the land to donate the minerals? +
No. Severed mineral and royalty interests are separate property and can be donated on their own.
Can I keep the surface and donate the minerals? +
If you own both, donating only the minerals can be treated as a partial interest and generally does not qualify for a deduction. Discuss it with your advisor before deciding.
What happens to the royalty checks after the donation? +
The operator updates its records after it receives the recorded deed, and future payments come to us. Checks already in process may still go to you briefly.
Do you accept working interests? +
Working interests carry costs and liabilities, so they are reviewed carefully and case by case. Royalty and mineral interests are more straightforward.
We do not provide tax or legal advice. See IRS Publication 526, Publication 561 and the Form 8283 instructions, and consult your own advisor.
Related guides
Tell us about the interest and we will review it
Send a recent check stub or the deed, and we will tell you plainly whether a donation works.