Step one
Tell us about the property and the business
Rooms, operating status, franchise, loans and recent financials. A specialist reviews it and calls back to talk through what would transfer and what would not.
Donate a hotel, motel or inn to charity, operating or closed
Hotel and lodging specialists: (888) 228-7320
Donate a Hotel, Motel or Inn to Charity
Real Estate with Causes accepts donated lodging properties nationwide: independent motels, limited-service and extended-stay hotels, bed and breakfast inns and cabin resorts, whether still operating or already closed. Hotels are among the property types where the value most often supports us taking on costs a smaller gift could not, including furniture and equipment removal. We prepare and record the deed and work through the franchise, the staff and the licenses with you.
Tell us about the property
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
How donating a hotel works
A hotel is a building and a business at the same time. We separate the two early so the real estate gift is clear.
Step two
We plan the transition and record the deed
Franchise exit, staff, reservations and licenses are worked out before the recording date. Our staff prepares the deed for the state and records it with the county.
Step three
The building becomes ours
Taxes, insurance, maintenance and liability transfer on the day the deed records. You receive a written acknowledgment and, where required, a signed Form 8283.
Selling a hotel versus donating it
Hotel buyers price in every deferred repair and every franchise requirement. This is how the two routes compare.
| Selling the hotel | Donating the hotel | |
|---|---|---|
| Time to be done with it | Broker marketing, buyer financing that often depends on franchise approval, and a property improvement plan the buyer must accept. | No marketing and no buyer financing. The schedule is set by title, any lender and the franchise exit. |
| What you pay | Broker commission, seller closing costs, franchise transfer or termination fees, and operating costs until closing. | No escrow, no closing and no commission. The qualified appraisal is your expense and your choice of appraiser. On hotels we more often absorb costs such as furniture removal or back taxes where the value supports it. |
| Furniture, fixtures and equipment | Sold with the business and priced by the buyer. | Discussed case by case. Personal property is appraised separately from the real estate for tax purposes. |
| Tax outcome | Capital gains on appreciation, plus recapture on depreciation of the building and furnishings. | A charitable deduction reported on Form 8283, generally based on the fair market value of the real estate for property held more than a year, subject to the depreciation rules and AGI limits. |
| Franchise obligations | Transferred to the buyer if approved, or terminated with fees. | Addressed before the gift. We do not operate franchises, so the flag usually comes off before or at transfer. |
| Where the value goes | To you, less commission, fees and tax. | To our charitable programs, less the cost of the transfer and the sale. |
We do not provide tax or legal advice. Deduction outcomes depend on holding period, property type, use and a qualified appraisal. See IRS Publication 526, Publication 561 and the Form 8283 instructions, and consult your own advisor.
Six kinds of lodging we review
From a twelve-room roadside motel to a franchised hotel off the interstate. Find the one closest to yours.
The tax deduction for donating a hotel
Hotels combine real estate and business personal property, and the two are valued and treated separately.
How the deduction is calculated
For real estate held more than a year, the deduction is generally fair market value as established by a qualified appraisal, limited to 30% of adjusted gross income, with a five-year carryforward. Depreciation taken on the building can reduce the amount.
Real estate versus the business
Furniture, fixtures, equipment and the business itself are separate from the real estate and may be valued and deducted differently. The appraisal should draw that line clearly, and your advisor should review it.
Loans, franchises and entities
A hotel with a loan becomes a bargain sale. A hotel held in an LLC or corporation is donated by the entity. Franchise termination costs are a business expense question for your advisor, separate from the gift.
Hotel donation questions, answered
Can I donate a hotel that is still operating? +
Yes, but the operation has to be wound down or handed off before or at transfer, because we do not run hotels. That means planning future reservations, staff and licenses with you. Many owners close at the end of a season and donate shortly after.
What happens with the franchise agreement? +
We do not operate franchised hotels, so the franchise is usually terminated before the gift. Termination terms vary widely by agreement, and some carry fees. Send us the agreement and we will look at it with you before anything is decided.
Are the furniture and equipment part of the donation? +
They can be, but they are personal property rather than real estate, so they are appraised and reported separately. Some owners sell them first; others include them. We will talk through which makes more sense for your property.
What about my employees? +
Staffing decisions stay with you as the operator until the business winds down. We can align the recording date with a closing date that gives your staff proper notice under your state’s rules.
The hotel needs a renovation to keep its flag. Does that matter to you? +
It is one of the most common reasons owners call. A required property improvement plan lowers what a buyer will pay but does not stop a donation. Tell us the scope and we will review the property on its own terms.
Not a hotel? We take these too
Eight other property classes, each with its own transfer rules and its own page.
Tell us about the property and we will review it
Send the number of rooms, the operating status and any franchise or loan, and we will tell you plainly what a donation would look like.