Oil, Gas & Mineral Rights or other Natural Resources
In the last decade, new geological technologies have created an unexpected surge in oil and gas production from deposits that were once considered depleted. BMM Foundation created the Natural Resources Charitable Foundation, LLC for the express purpose of receiving and managing gifts of natural resources. Whether you are considering a gift of mineral resources or other natural resources, (timber, limestone etc.), BMM Foundation is prepared to help.
Your gift of mineral rights can be tailored to meet your needs. You may wish to retain a life estate in the royalties, to grant sufficient royalties to fund specific ministries, or to make an outright gift of your mineral rights to the ministry. Whatever the case may be, BMM Foundation stands ready to help.
A gift of oil, gas & mineral rights or other natural resources could be right for you if:
- You own the rights to natural resources, (timber, water, oil, gas, minerals, etc.), that you wish to use to further the great commission.
- You own the rights to royalties from natural resources and wish to make a gift.
- You wish to transfer your mineral interests or royalty income to BMM Foundation and receive a charitable income tax deduction.
- You wish to create a bequest that would transfer your interests to BMM Foundation after your lifetime.
How it works
Here are some common techniques for making a gift of your rights to natural resources to BMM Foundation.
- Give your rights to natural resources to BMM Foundation outright.
- Give your rights to natural resources, but retain a life estate in the income produced by those resources.
- Give a portion of your rights to natural resources and keep the rest.
How Your Gift Helps
Your gifts to Baptist Mid-Missions help to creatively and strategically advance the cause of Christ to the world by inspiring and mobilizing local churches and individuals to actively participate in mission opportunities. It will provide Baptist Mid-Missions with the resources to…
The common transactions used to gift natural resources are briefly described below. Please contact us if you have questions about which of these might be best for your situation and goals.
Transfer your natural resources to us outright
This is the simplest gift: an outright gift of your natural resources. By giving us all rights to your natural resources, you will maximize your support for BMM Foundation, and will earn an immediate charitable income tax deduction.
Give your rights to natural resources, but continue to receive your royalty payments from those resources as long as you wish
When you give your rights to natural resources to BMM Foundation but retain the right to receive royalty payments during your life, you have the benefit of income from those natural resources and the comfort of knowing that they will support the ministry of BMM Foundation after your earthly life.
Give a portion of your rights to natural resources
Rather than give BMM Foundation all your natural resources, you can give us part of your holdings. As with a gift of real estate, you will receive an immediate income tax charitable deduction for the value of the portion you give. You will likewise retain complete control of the portion that you keep.
Give your rights to natural resources through your estate
By making a gift of natural resources through your estate, you will retain all rights to your natural resources during your life. If your circumstances and priorities change, you can easily change your gift plan as well. By putting your gift in your will or trust now, you will assure that your wishes will be carried out later. You may also save estate taxes.
Special considerations when giving natural resources
Giving natural resources to BMM Foundation requires some extra steps of which you should be aware. Because there are clear IRS regulations and requirements involved, it is prudent to seek the counsel of legal advisors as you pursue this type of gift. The extra steps include, but may not be limited to, the following:
- You will need to establish the value of your gift by obtaining a qualified appraisal. To be valid for establishing your income tax charitable deduction, your appraisal must be conducted no sooner than 60 days before your donation and no later than the due date, including extensions, of your next tax return.
- We will need to examine the title to your natural resources and conduct our own independent “due diligence” analysis. For example, we will need to verify title and check for any liens which may exist against your interest in the property.
- Because environmental problems run with the property, we could become responsible for expensive remediation of any existing environmental infractions. Therefore, before we can accept any gift of real estate, we routinely conduct a review to make sure the property presents no environmental issues.