Donation Benefit Services Program (DBSP)

Through multiple trusted industry and strategic partnerships including, state and federal government agencies, certified deconstruction appraisers, within the meaning of IRC Section 170(f)(11)(e), law firms and financial institutions, the Donation Benefit Services Program is a one-stop solution for the acquisition, management, deconstruction and donation of reusable materials across the U.S.

Demolition is the practice of buildings being taken down when hazardous material generally remains. Demolition can compromise public safety by contaminating a city’s ground water, air quality and producing hazardous waste in landfills. More than 79 tons of debris comes out of the average home. By diverting much of that debris to recycling and salvaging reusable building materials, up to 85% of debris can avoid being put in landfills.  It’s not easy to measure, but there are real environmental benefits to building disassembly and material salvage. It saves landfill space and reduces the pollution and energy consumption associated with manufacturing and production of new materials.  It can reduce site impacts in terms of dust, soil compaction and loss of vegetation or ground cover. 

Deconstruction is defined as building disassembly and building material salvage, which means taking apart or removing building components for donation, reuse and landfill diversion. Deconstruction involves carefully taking apart the building and removing the contents with the primary goal of maximizing reuse of salvage material, repurpose, and avoiding landfill waste. Deconstruction can replace standard demolition in a meaningful way. In some cases, deconstruction is the same cost as demolition; deconstruction adds value to the investors, developers and clients through additional federal tax deductions that can carry forward for up to five (5) years.  It can be as simple as stripping out cabinetry, fixtures and flooring or as involved as manually taking apart a building brick by brick. 

The IRS deconstruction tax benefit rewards the Donation Benefit Services Program Client for diverting reusable building materials from landfills and donating those materials to a qualifying GNHO.  Other important components to the Donation Benefit Services Program are identifying structures for salvaged building materials, creating cost effective deconstruction procedures, working with local government to incorporate deconstruction as part of a larger economic development that aims to stabilize and revitalize communities or blighted neighborhoods. Deconstruction and donation also work to meet the U.S. Department of Housing and Urban Development’s Economic Development Grants and Neighborhood Initiative Programs that encourage multi-faceted projects that benefit low-to-moderate income people while eliminating slums and blight. 

In 2019 there were 21 cities in the U.S. that are facing bankruptcy or operate at a deficit. During this current pandemic that number of cities has almost doubled. Never before has the need for community revitalization been so great especially during a pandemic. Our holistic approach of deconstructing old and or abandoned buildings paves the way for new innovative solutions for redevelopment, urban farming, economic development, workforce development, and urban community engines to flourish. 

A certified deconstruction appraisal is the valuation of a structure’s building materials and equipment that can be salvaged and repurposed. This type of appraisal is typically utilized when the owner of the structure chooses to donate the building materials to a qualified GNHO and the total value of the material exceeds $5,000. The Donation Benefit Services Program has access to a portfolio of buildings across the U.S. that have an estimated pre-appraisal value ranging from $300,000 to exceed $5 million. Donation Benefit Services Program is a practical and sustainable way to reduce annual federal tax liability while revitalizing a city with workforce and economic development each and every year. 

DISCLAIMER

Each Client tax profile may vary substantially from the examples provided. The impact of the tax benefit may vary depending on other deductions, nature of income, Alternative Minimum Tax calculations or other factors not able to be taken into consideration in the examples provided. All potential Clients are advised to consult with their tax professionals to determine the actual impact of the tax benefit on their projected tax liability. DDP employees are not tax advisors, tax professionals nor do we offer any legal advice.

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​CPA firms, Wealth Managers, Tax Attorneys, Professional Athletes, Entertainment Managers, Hedge Fund Managers, High Net-Worth Individuals, Married, Corporations, Companies, and Capital Gains entities that are seeking a minimum of a 4 to 1 tax deduction for their clients or interest. DDP works with any licensed tax advisory company and licensed tax professionals to obtain real estate, manage the deconstruction, and donation documents for clients to yield a minimum of a 4 to 1 tax deduction every year.