TDCAA Community
County donate real property to 501(c)(3)?

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https://tdcaa.infopop.net/eve/forums/a/tpc/f/257098965/m/2121015112

November 01, 2010, 13:04
ESR
County donate real property to 501(c)(3)?
Can a county donate real property to a non profit organization, specifically one that has its 501(c)(3) status? I think the answer is probably no, but have not had time to research it yet.
November 01, 2010, 13:47
Jim Tirey
The county may not donate the property.

If the property is within a municipality, the city might be able to donate the property to the nonprofit under Local Gov't Code sec. 253.011. That also depends upon the use planned by the nonprofit.

We had similar questions come up regarding a house and a non-profit dedicated to providing homes for families. Our situation involved the county, city, and school district. Feel free to email me if you want more information.
November 01, 2010, 13:49
Scott Brumley
If the commissioners court determines that the donation will achieve a public purpose and adequate controls are placed on the conveyance to ensure that the public purpose is accomplished, then maybe so. See, e.g,, Op. Tex. Att'y Gen. No. JC-0439 (2001). Otherwise, no. See Tex. Const. art. III, sec. 52(a).
November 01, 2010, 14:51
ESR
Thanks, guys!
November 02, 2010, 15:20
ESR
The county may not donate the property, so now they want to sell it. May the county sell it for less than its appraised value?

After a quick review of Chapter 263 of the Local Government Code it appears to me that we must sell it at public auction to accomplish this.

263.001 (public auction)doesn't include a minimum bid provision
263.007 (sealed bid) says to obtain an appraisal of the fair market value and determine a minimum bid based on that appraisal (Does this necessarily mean that the minimum bid must be equal to the appraisal?)

We are going to restrict the use of the property as allowed by 263.004, so we don't expect any competitive bids.

FYI, this is the old rodeo arena and show barn and the county would love for someone else to be responsible for it.

Of course, now that the comissioners have decided to do this everyone is in a hurry!

Advice? Suggestions? Cautions? Verbatim text for the notice? Big Grin