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Nonprofit Law/Renting my property to a non-profit?



I am thinking about renting my property (in California) to a non-profit church and someone told me I might be able to write off a portion of the property tax.  Is this true?

Also, is there any other tax benefits for letting a church use our property?

Thank you for your help!

I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. There is no federal tax benefit for discounting or even giving rent free to a 501(c)(3) organization.  As to charitable deductions, see IRS Publication 526 "Charitable Donations"  which is available at:
especially on page 9 the IRS writes about "partial interests" under
the heading "Partial Interest in Property" which means that
donations of use are not deductible.

As for State Property tax, that is beyond the scope of this free forum, but I will direct you to the Revenue and Taxation Code as to Taxable and Exempt Property which is available at
Note for example, 207:
--- Start of Excerpt ---
Property used exclusively for religious purposes shall be exempt from taxation. Property owned and operated by a church and used for religious worship, preschool purposes, nursery school purposes, kindergarten purposes, school purposes of less than collegiate grade, or for purposes of both schools of collegiate grade and schools less than collegiate grade but excluding property used solely for purposes of schools of collegiate grade, shall be deemed to be used exclusively for religious purposes under this section.
---End of Excerpt---
Therefore, property needs to not only be used for exempt purposes but also owned by the 501(c)(3) organization. You can look at the sections around that one.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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