FAQ | Common Questions about the Donation Benefit Services Program | DDP
Knowledge Base
Frequently Asked Questions
Everything you need to know about the DBSP. We believe in full transparency and are committed to your informed decision-making.
ℹ️ About the Program
What is the Deconstruction 4-to-1 Donation Benefit Program?
The DBSP is a unique, IRS-compliant program that transforms property teardowns into significant tax benefits. Instead of demolishing a building, we facilitate its deconstruction and the donation of salvaged materials to qualified nonprofits. In return, clients receive a charitable tax deduction up to four times the value of their service fee.
How is this different from regular charitable giving?
While this is a form of charitable giving, it is a highly leveraged strategy. Instead of donating cash, you invest in a service that facilitates a much larger noncash donation (building materials). This generates a deduction significantly greater than your direct cash outlay.
Why is it called "4-to-1"?
The name reflects the financial model. Our service fee is 25% of the appraised value of the donated materials. Thus, for every $1 you invest in the fee, you generate $4 in charitable donation value—a 4-to-1 return on investment in the form of a tax deduction.
Is this program legal and IRS-compliant?
Absolutely. The principles of deconstruction have been recognized by the IRS, HUD, and EPA for over two decades. We operate in strict accordance with IRC Section 170 and qualified appraiser rules under Section 170(f)(11)(e).
💰 Financial & Tax Questions
How much does the program cost?
The fee is 25% of the desired donation value. For example, to generate a $200,000 tax deduction, the fee would be $50,000.
What is the minimum and maximum donation value?
The minimum donation value is typically $50,000 (requiring a $12,500 fee). We can handle projects generating donation values in excess of $5 million.
What if I can't use the entire deduction in one year?
The IRS allows noncash charitable deductions to be carried forward for up to five years. This provides significant flexibility, allowing you and your advisor to apply the deduction strategically over several tax years.
Will this program trigger an audit?
Audits on donations under $500,000 are uncommon. For donations of $500,000 or more, an IRS review is more likely. However, our program is designed with a multi-tiered audit preparedness system to ensure full defensibility.
What happens if I am audited?
You are protected by our three-tier audit defense system at no additional cost. This includes support from the certified appraiser and full legal representation from the AV-rated law firm Valensi & Rose, PLC.
⚙️ Eligibility & Process
Who is eligible for this program?
Our clients include high-income W-2 employees, private companies, real estate developers, and individuals with capital gains or ROTH conversions. Anyone looking to significantly reduce federal tax liability can benefit.
How long does the entire process take?
The timeline is typically 15 to 18 months. This includes the IRS-mandated hold period of one year and one day, plus time for acquisition, deconstruction, and documentation.
Why do I have to hold the property for 1 year and 1 day?
This ensures the property qualifies as a long-term capital asset. Donating a long-term asset allows you to deduct its full fair market value, which is key to the 4-to-1 benefit.
🏠 Property & Liability
Do I have to visit or manage the property?
No. The DBSP is a fully managed, turnkey service. DDP manages the property on your behalf throughout the entire process.
What happens if someone gets hurt on the property?
The project is double-insured. A general liability policy is included in your fee, and a separate policy is held by the deconstruction contractor.
Get 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
Insights & Updates from DDP
At Deconstruction Development Partners (DDP), we believe knowledge is just as valuable as action. Our blog is designed to keep real estate developers, property owners, municipalities, and industry professionals informed about the latest innovations in sustainable development, deconstruction programs, finance consulting, and media & entertainment. Each article highlights strategies that reduce costs, maximize tax benefits, and create lasting community impact. Whether we’re breaking down how our 4-to-1 Donation Benefit Services Program transforms teardowns into tax advantages, or showcasing how our Media & Entertainment division is revolutionizing storytelling through film, music, and podcasts, the DDP blog serves as your trusted resource for insights that matter. Stay connected with us as we share expert perspectives, industry trends, and success stories that show how DDP is shaping the future of redevelopment, sustainability, and cultural innovation.
