How It Works
How It Works: A Proven Path to Significant Tax Savings
Understand the mechanics of DDP's Donation Benefit Services Program (DBSP) – a fully compliant, transparent, and powerful model for converting property deconstruction into a 4-to-1 tax advantage.
The 4-to-1 Donation Model Explained
The core of our program is a simple yet powerful financial model. For a fee equivalent to 25% of a property's appraised donation value, you receive a tax deduction for the full 100% of that value. This creates a 4-to-1 leverage on your investment, generating substantial tax savings.
How the Model Works
You Invest
25%
Service Fee
→
You Receive
100%
Tax Deduction
The Process:
1. You pay a service fee to DDP (25% of desired donation value)
2. We manage property acquisition, appraisal, deconstruction, and donation
3. You receive a donation receipt for the full appraised value
4. You use it as a charitable deduction on your federal tax return
2. We manage property acquisition, appraisal, deconstruction, and donation
3. You receive a donation receipt for the full appraised value
4. You use it as a charitable deduction on your federal tax return
| Your Investment (25% Fee) | Your Tax Deduction (100% Value) |
| $25,000 | $100,000 |
| $50,000 | $200,000 |
| $125,000 | $500,000 |
| $250,000 | $1,000,000 |
5-Year Carry-Forward Benefit
The IRS allows these charitable deductions to be carried forward for up to five years, providing long-term flexibility and tax planning opportunities.
Deconstruction vs. Demolition: A Superior Choice
Understanding the difference between deconstruction and traditional demolition is key to recognizing the value of the DBSP. Deconstruction is a sustainable, value-driven process, while demolition is a destructive and wasteful practice.
| Feature | Deconstruction (The DDP Way) | Traditional Demolition |
|---|---|---|
| Process | Systematic disassembly to salvage materials | Mechanical destruction of the structure |
| Outcome | Up to 85% of materials are reused or recycled | Over 79 tons of debris per home go to landfills |
| Financials | Creates a valuable tax deduction asset | Incurs a significant project cost |
| Environment | Reduces landfill waste, saves energy, lowers carbon footprint | Contaminates groundwater, pollutes air, fills landfills |
| Community | Creates skilled jobs, provides materials for affordable housing | Offers no community benefit |
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.
The Complete Program Timeline
Our process is structured to ensure full compliance with IRS regulations, particularly the one-year-and-one-day hold period required to achieve maximum donation value. While we manage every detail, it is important for clients to understand the timeline.
1
Engagement & Acquisition (Months 1-2)
The journey begins with your commitment to the program.
- Initial consultation, agreement execution, and fee processing
- DDP identifies and acquires a suitable property on your behalf
- Title transfer and legal documentation completed
2
The Hold Period (1 Year and 1 Day)
This is a critical IRS requirement for maximizing your deduction.
- You hold title to the property to satisfy IRS long-term asset requirements
- DDP manages the property throughout this period
- Quarterly progress updates provided to keep you informed
- Property is fully insured with comprehensive coverage
3
Deconstruction & Donation (Months 13-15)
The property is professionally deconstructed and materials are donated.
- A certified deconstruction appraisal is conducted
- Licensed contractors deconstruct the property and salvage materials
- Materials are transported and donated to qualified 501(c)3 nonprofits
- All work meets safety and environmental compliance standards
4
Documentation & Tax Filing (Month 16+)
You receive comprehensive documentation for your tax filing.
- Complete documentation package delivered to you
- Includes certified appraisal and IRS Form 8283
- Donation receipt from qualified nonprofit
- Use this documentation to claim the deduction on your next tax return
- 5-year carry-forward allows strategic multi-year planning
Built on a Foundation of IRS Compliance
The integrity of our program rests on its strict adherence to the Internal Revenue Code. The DBSP has been recognized by the IRS, HUD, EPA, and other federal agencies since 2000.
IRC Section 170
Governs charitable contributions and deductions
Qualified Appraisals
All valuations by IRC Section 170(f)(11)(e) certified appraisers
Form 8283
We provide properly completed IRS form for noncash contributions
Qualified Nonprofits
All donations to IRS-qualified 501(c)3 organizations
Government Recognition
Our deconstruction model has been recognized and validated by:
✓ U.S. Internal Revenue Service
✓ U.S. Department of Housing and Urban Development (HUD)
✓ Environmental Protection Agency (EPA)
✓ U.S. Department of Treasury
✓ U.S. Department of Labor
✓ U.S. Internal Revenue Service
✓ U.S. Department of Housing and Urban Development (HUD)
✓ Environmental Protection Agency (EPA)
✓ U.S. Department of Treasury
✓ U.S. Department of Labor
Ready to Learn More?
Now that you understand how the program works, explore the specific financial benefits or view our detailed process documentation.
Schedule Your Consultation View Our ServicesGet Started: Take the First Step Towards Tax Savings
Schedule a complimentary, no-obligation consultation with our team. Whether you're ready to engage or simply have questions, we're here to provide the information you need in a confidential and professional setting.
Quick Contact
Support Email
Address
6 Cardinal Way Ste 900
St. Louis, MO 63102
What to Expect Next
- Initial Call: A brief, confidential discussion to ensure our program is a good fit for your goals
- Strategy Session: A detailed follow-up to model your potential tax savings and outline strategy
- Engagement: If you choose to move forward, we guide you through our simple onboarding process
Send Us a Message
Fill out the form below and a member of our team will get back to you within one business day. There is no pressure and no obligation.
Why Choose DDP?
- ✓ IRS-compliant since 2000
- ✓ 100% audit success rate
- ✓ Full legal representation included
- ✓ Turnkey, fully managed service
