1 Niki L. Pace, Research Counsel Mississippi Alabama Sea Grant Legal Program September 15, 2009
2 What is a land trust? A land trust is a private, nonprofit organization whose mission is the acquisition and protection of land through direct action. A land trust works to protect natural, scenic, recreational, agricultural, historic, or cultural property. Land trusts can operate in urban, rural, and suburban areas.
3 Commonly called 501(c)(3)s (federal tax section) Alabama Non Profit Corporation Act Ala. Code 10 3A 1 1 et seq. (2009) Mission Statements Tax Issues
4 Alabama Non Profit fitcorp. Act At Charitable Purposes Articles of Incorporation Name Purpose Duration (perpetual) Name of Incorporators Name of Board of Directors Registered Agent Hold organizational meetings
5 Mission i Statementst t Mission Statement: Necessary Legally Binding Specify the public interest(s) served Issues for Organizations already 501(c)(3) Review Mission: Is it consistent with operating a land trust? May need amending
6 Sample Mission i Statementst t To conserve land for the future of Vermont Vermont Land Trust. To conserve, promote, and protect the open spaces and green places of ecological, cultural, or scenic significance in the counties of the Mississippi Coastal Plain Land Trust for the Mississippi Coastal Plains. To protect the natural diversity and beauty of northern Michigan by preserving significant land and scenic areas and by fostering appreciation and understanding of the environment Little Traverse Conservancy.
7 Tax Returns Fd Federal ltax Issues $25,000 or less (not required but recommended) Form 990EZ $25,000 to $100,000 Form 990EZ More than $100,000 Form 990 and Schedule A Unrelated Business Income (more than $1,000) Form 990 T
8 Fd Federal ltax Issues Disclosure Requirements Copy of annual tax return Form 990 or 990EZ but not 990T May omit names and addresses of contributors Copy of application for tax exemption Form 1023 Copy of any supporting materials Copy of IRS response to tax exempt application
9 501(c)(3) Status t Requirements of 501(c)(3) status: No private inurement (benefit) to members Organization and Bookkeeping Requirements Limited political activities Unrelated Business Income allowed but must be reported Fate of Assets if Group Fails
10 Choosing Conservation Projects Federal Tax Criteria Lands in Fee Simple Conservation Easements
11 Choosing Conservation Projects Consistency with missions and goals Does this project fit our land trust? Resource and Public Benefit Values Is the land worthy of protection? Feasibility Can the resources be protected at a reasonable cost to the land trust? Significance, ifi high h priority i Is this where we should devote our time and money now?
12 Fd Federal ltax Criteria Ci i Qualified Conservation Contributions Public Benefit Requirements
13 Qualified dconservation Contributions ti Internal Revenue Code 170(h) requires: A qualified real property interest Granted to a qualified organization Exclusively for conservation purposes Requires Written Qualified Appraisal Cannot be dated earlier than 60 days before the gift Fair Market Value
14 Qualified dconservation Contributions ti Exclusive Conservation Purposes (IRS) Provides outdoor recreation or educational use for the general public Protects natural habitat of fish, wildlife, plants Preserves open space, including Providing for scenic enjoyment of the general public, and Yields a significant public benefit Preserves an historically important land area or certified historic structure.
15 Public Benefit fitrequirement Must be significant Public benefit is broadly defined IRS has factors for evaluating public benefit of conservation easements Can be applied to fee simple land as well But only legally apply to tax deductible conservation easements
16 Public Benefit fitrequirement IRS factors Uniqueness of the property to the area; Intensity of land development in the vicinity of the property; Consistency of proposed open space with public programs for conservation in the region; Consistency with existing private conservation programs in the area; Likelihood that development of the property will lead to or contribute to degradation of the scenic, natural or historic character of the area;
17 Public Benefit fitrequirement IRS Factors (cont d) Opportunity for the general public to use the property or appreciate the scenic values Importance of the property in preserving a local or regional landscape resource that attracts tourism or commerce to the area Likelihood that the donee will acquire equally desirable substitute property Cost to the donee in enforcing the conservation restrictions Population density in the property area Consistency with any legislatively mandated program identifying conservation parcels of land
18 Public Benefit fitrequirement Practical concerns: Document the public benefit of the transaction and how the project is consistent it t with the land trust s t mission. i Inspect the property before entering into a transaction. (Earlier the better saves time and money.) y) Does the property meet land trust criteria? Are there any management related problems? Do potential problems need further investigation?
19 Land dacquisition iti Purchasing Land Ownership of land in fee simple Gift Land donated d must comply with IRS criteria i if landowner wants tax deduction Conservation Easements
20 Land din Fee Simple Land the trust owns outright May be purchased or donated Transactional costs may include Title search Title il insurance Deed preparation Survey Environmental due diligence Preparation of baseline document
21 Land din Fee Simple Taxes Investigate possible exemptions Liability Insurance Document public benefit Monitor the property (at least annually) Mark boundaries Post for trespass Look for possible encroachment
22 Title Investigations To be valid, agreement must include all parties with interest in the property Spouse Tenants in common Encumbrances liens, mortgages Applies to fee simple and conservation easements
23 Conservation Easements A conservation easement is a voluntary, legal agreement between a landowner and a land trust that permanently limits uses of the land in order to protect its conservation values. It allows a landowner to continue to own and use the land and to sell it or pass it on to heirs.
24 Conservation Easements Alabama law requires the purpose to include: retaining or protecting natural, scenic, or open space use protecting ti natural resources maintaining or enhancing air or water quality or preserving the historical, architectural, archaeological, paleontological, or cultural aspects of real property. Ala. Code May be held by government or charitable organizations whose purposes include conservation of natural resources (mission statements).
25 Drafting Conservation Easements To be enforceable, must contain: explicit reference to that effect Drafters may include third party enforcement must be in easement. Duration usually perpetual but must specify If not, lesser of 30 years or life of grantor Prepare Baseline Documentation Status of property and its conservation values Hire a knowledgeable attorney
26 Monitoring i Requirements Conservation Easements require monitoring Purpose: to detect and document any violation since last visit. ii Frequency: at least once a year. Document visit ii for baseline purposes, to review next year when visiting. Digital pictures good idea.
27 Violations Often unintentional behavior of landowner Examples of common violations: Surface alterations (like ditches or new roads) Clearing of vegetation Construction ti of unauthorized structures t Prohibited timber harvest Trust has duty to enforce easement conditions But do so in least confrontational manner possible Work to restore damage to conservation values
28 Enforcement Land trust has duty to enforce If enforcement action becomes lawsuit: Land trust must show regular monitoring and enforcement of easements Lax enforcement or non enforcement may be considered waiver by the land trust of rights to enforce. Avoiding vagueness in easement makes enforcement easier
29 Comparison Fee Simple Conservation Easement Higher Initial Cost Lower upfront cost often Greater Control/Management donated by landowner Greater potential for disputes, Can open land to public may result in termination of purposes, poses, like education easement Easier to acquire on large tracts of land Favorable for farmland Can be used for buffers around property already owned
30 Management tcosts Transaction Costs Title Search Title Insurance Deed Preparation Surveys Initial Capital Expenses (Fee Simple Lands) Costs of Continuing i Stewardship Easement Defense Costs (Conservation Easement)
31 Conclusion Be diligent! Visit the land first. Research the title Are there deed restrictions? Lien holders? Are all parties to the title in agreement? (spouses, tenants in common) Draft documents carefully consult an attorney Establish baseline documentation Visit the property regularly and work with landowners to resolve violations.
32 Other Land Trusts The Nature Conservancy, In Alabama, t / h th / t tes/alabama/ Alabama Land Trust, Land Trust for the Mississippi Coastal Plain, Alabama Forever Wild Land Trust created statutorily by the state of Alabama. Alabama Const. Art. XI, Sec (2009)
33 Resources: Sally K. Fairfax et al., Buying Nature: The Limits of Land Acquisition as a Conservation Strategy, (Sheldon Kamieniecki i & Michael E. Kraft eds., 2005). Richard Brewer, Conservancy: The Land Trust Movement in America (Dartmouth College ed., 2003). Land Trust Alliance, The Land Trust Standards and Practices Guidebook: An Operating Manual for Land Trusts (Sylvia K. Bates & Tammara Van Ryn eds., rev. ed. 2006). Land Trust for the Mississippi Coastal Plain, A Landowner s Guide to Conservation Options in Mississippi
Wisconsin Land Trusts What is a Land Trust? Conservation land is essential to the health and beauty of Wisconsin. Land trusts are non-profit organizations that help protect land for public benefit. There
March 2011 DRAFT Minnesota Department of Natural Resources (DNR) Division of Forestry Federal Forest Legacy Program and Minnesota Forests for the Future Program Conservation Easement Stewardship and Monitoring
Conservation Tax Credit Regulations Chapter 391-1-6 A-1 RULES OF GEORGIA DEPARTMENT OF NATURAL RESOURCES CHAPTER 391-1-6 GEORGIA CONSERVATION TAX CREDIT PROGRAM TABLE OF CONTENTS 391-1-6-.01 Purpose and
Wood River Land Trust LTA Standard 2: Compliance with Laws 2A: Compliance 2B: Incorporation/Bylaws 2C: Tax Exemption 2D: Records Policy 2E: Public Policy Policy: The Land Trust will fulfill its legal requirements
Easements: Protection without Ownership Using Easements to protect properties that are not for sale A preservation organization doesn t have to acquire real estate to gain control over its future. Preservation
Conservation Easements Preserving your land for future generations SM The attorneys at Isaacson Rosenbaum are the pioneers of conservation law & conservation easements in the Rocky Mountain region. Their
PRESERVATION EASEMENT PROGRAM PRESERVATION ALLIANCE FOR GREATER PHILADELPHIA TECHNICAL INFORMATION WHAT IS AN HISTORIC PRESERVATION EASEMENT? An historic preservation easement is a means by which the owner
Pennsylvania's Clean and Green Program The Penn State Dickinson Agricultural Law Resource and Reference Center * The purpose of this publication is to help you learn about and understand this important
Frequently asked questions about Agriculture Easements What is an agricultural conservation easement? What land is eligible? What will I receive for my conservation easement? How are agricultural conservation
Technical Report 34 Purchase of Development Rights and Conservation Easements: Frequently Asked Questions Agricultural Experiment Station Cooperative Extension Service College of Agriculture and Home Economics
Using Conservation Easements to Preserve Open Space A Guide for Pennsylvania s Municipalities by Debra Wolf Goldstein, Esq. General Counsel Heritage Conservancy Acknowledgements We are grateful for the
Market-Based Planning Tools: An Overview of TDRs and PDRs Kevin Cheshire, Research Fellow, Coastal Resources, Law, Planning and Policy Center February 12, 2007 1 Introduction Planners and local governments
Appendix A: Land Protection Plan In this appendix A.1 Introduction and Purpose A.2 Project Description A.3 Refuge Purposes A.4 Land Acquisition Policy for Urban Refuges A.5 Status of Resources to be Protected
INFORMATION BRIEF Minnesota House of Representatives Research Department 600 State Office Building St. Paul, MN 55155 John Helland, Legislative Analyst 651-296-5039 December 2005 State Environmental Trust
Canadian Land Trust Standards and Practices 2005 Canadian Land Trust Alliance December 1, 2005 Acknowledgements This document was revised and modified based on the U.S. Land Trust Standards and Practices
ID-275 Communities on Course Land Use Tax Treatment of Conservation Easements William L. Hoover Professor of Forestry Department of Forestry and Natural Resources Purdue University Knowledge to Go Purdue
Succession Planning Case Studies Prepared by NCFC Business Consulting INTRODUCTION The following are brief descriptions of how some intergenerational business succession plans have been implemented. These
APPLICATION FOR STATE REVOLVING FUND LOAN for the Construction of Wastewater Treatment Facilities (Revised 02/2015) A completed application must be submitted for each proposed project. If any information
Assembly Bill No. 242 CHAPTER 588 An act to add Article 3.5 (commencing with Section 1360) to Chapter 4 of Division 2 of and to add and repeal Section 1363.5 of, the Fish and Game Code, relating to oak
March 2012 Planning Information Brochure 1 Land Protection Planning for the National Wildlife Refuge System The following questions are often asked when the U.S. Fish and Wildlife Service (Service) begins
News release For immediate release August 21, 2008 Contact: Connie Prickett, (518) 576-2082 x162, firstname.lastname@example.org The Nature Conservancy Offering Protected Lands for Sale in the Adirondacks Sustainable
GOOD LAND TRUST Fundraising Plan OVERVIEW OF THE FUNDRAISING PLAN Background The Good Land Trust is a land trust working in Ecotopia actively protecting natural resources and the open landscapes that define
AN INTRODUCTION TO CONSERVATION EASEMENTS FOR THE NON-LAWYER James Wyse, Esq. Herold and Haines, P.A. 25 Independence Boulevard Warren, New Jersey 07059-6747 (908) 647-1022 An Introduction To Conservation
C o n s e r vat i o n E a s e m e n t s Protection In Perpetuity D u c k s U n l i m i t e d s C o n s e r v a t i o n L a n d s P r o g r a m When we see land as a community to which we belong, we may
Grantee charities may find that adoption and implementation of a Gift Acceptance Policy will provides reassurance to grantors. In any event, the charity will want to review these policies carefully and
Management Plan Template For Conservation Easements Held by CPW The following template provides guidelines for developing a management plan for a property that will have a Conservation Easement held by
Publication 1071 An Introduction To Easements George F. Smith Associate Professor Agricultural Economics and Resource Development You may be one of the many Tennessee landowners who have granted easements.
Selected Property Tax Relief and Reform Issues Joint Select Committee on Property Tax Relief and Reform June 4, 2007 Selected Issues Tangible Personal Property Low-Income Seniors Working Waterfronts Affordable
Charitable Gifts of S Corporation Stock How To Do It By Christopher J. Hoyt You can download and save your own free copy of the entire article by clicking the ONE-CLICK DOWNLOAD link at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1926693
Remarks of Steven T. Miller Commissioner, IRS Tax Exempt and Government Entities Division Before the American Society of Appraisers Friday, October 22, 2004 Conservation Easements I appreciate your invitation
REVERSE MORTGAGES EXPLAINED Thank you for considering a reverse mortgage loan. As you may know, a reverse mortgage loan is a very special type of loan that permits borrowers to convert some of the equity
Limited Liability Company Basics By Bill Gregory, Regional Director Northwestern State University OSBDC Limited Liability Companies as with Corporations insulate personal assets of owners. LLC s can be
RIGHT FROM THE START: RESPONSIBILITIES of DIRECTORS of N0T-FOR-PROFIT CORPORATIONS Attorney General ERIC T. SCHNEIDERMAN Charities Bureau www.charitiesnys.com Guidance Document 2015-6, V. 1.0 Issue date:
PART 1 - REAL ESTATE BASICS Table of Contents Page 1.1 Ownership Concepts and Interests in Land 1 1.1.1 Fee Simple 1 1.1.2 Life Estate 1 1.1.3 Leasehold Interest 2 1.1.4 Common Law Easements 2 1.1.5 Restrictive
Form 990 Questionnaire For All Organizations Core Form Heading & Pt I Summary 1. The organization mission or most significant activities that you wish to highlight this year: 2. Total number of volunteers
About This Policy COMMUNITY FOUNDATION OF ANNE ARUNDEL COUNTY GIFT AND FUND ACCEPTANCE POLICY The purpose of this policy is to establish criteria for accepting gifts to Community Foundation of Anne Arundel
An Introduction to Conservation Covenants A Guide For Developers and Planning Departments The Land Trust Alliance of BC Revised April 2007 Photo: Millard Piercy Watershed Courtenay, BC several conservation
Approved by the Board of Directors on 6/1/11 LONG BEACH ROTARY SCHOLARSHIP FOUNDATION GIFT ACCEPTANCE POLICY To ensure compliance with applicable legal and fiduciary requirements and to provide guidance
Please note: This text is from the fourth edition of Federal Historic Preservation Laws, published in 2006 by the National Center for Cultural Resources, National Park Service, Department of the Interior.
AMENDED AND RESTATED ARTICLES OF INCORPORATION OF ROBERT W. WOODRUFF FOUNDATION, INC. ARTICLE I Name The name of the corporation is Robert W. Woodruff Foundation, Inc. ARTICLE II Organization The corporation
Easements to Protect Historic Properties: A Useful Historic Preservation Tool with Potential Tax Benefits National Park Service Technical Preservation Services 2010 What is a Historic Preservation Easement?
F A R M L A N D I N F O R M A T I O N C E N T E R Status of PACE Programs As of May 2013, 27 states have state-level purchase of agricultural conservation easement (PACE) programs. Four states Arizona,
HOMEOWNERS ASSOCIATIONS WORKSHOP THINGS YOU SHOULD KNOW WASHINGTON STATE SECRETARY OF STATE OLYMPIA, WASHINGTON JUNE 28, 2013 Presented by Gary N. Ackerman Foster Pepper PLLC 1111 Third Avenue, Suite 3400
DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224 TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION Number: 201442066 Release Date: 1 0/17/2014 Contact Person: Identification Number:
Buying a Home 1 2 INTRODUCTION Buying a home may be the biggest single investment of your lifetime. Your life s savings may be invested in this one venture. Thus, it is extremely important that you, the
COMMITMENT INFORMATION SHEET The Title Insurance Commitment is a legal contract between you and the Company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy
Tampa Hillsborough Action Plan Gift Acceptance Procedures Purpose The purpose of these procedures is to implement the Gift Acceptance Policy adopted by the Board of Directors of Tampa Hillsborough Action
Tax Exempt and Government Entities EXEMPT ORGANIZATIONS A Donor s Guide to Vehicle Donation, BEFORE YOU GIVE YOUR VEHICLE TO A CHARITABLE ORGANIZATION: n CHECK OUT THE CHARITY, n SEE IF YOU LL GET A TAX
Private Land Stewardship in New Brunswick: A Guide for Landowners Format and ideas for this publication based on: Conservation Guidelines for Ecologically Sensitive Forested Sites on Private Woodlots within
AMENDMENTS TO UNIFORM CONSERVATION EASEMENT ACT Approved by the Executive Committee of the National Conference of Commissioners on Uniform State Laws, February 3, 2007 AMENDMENT 1 Commissioners Prefatory
Philanthropy as a Family Affair: Using a Private Foundation to Achieve Your Charitable Goals ~ Susan B. Hecker Establishing a private foundation can be a fulfilling way to work with charities, but be prepared
Columbus Metropolitan Library Foundation Gift Acceptance Policy Introduction Columbus Metropolitan Library Foundation (the Foundation ) is an organization recognized as exempt from federal income taxation
F A R M L A N D P R E S E R V A T I O N Permanently preserving privately owned productive agricultural land ensures a stable land base for the future of the agricultural industry. Farmland preservation,
AGE of Central Texas Gift Acceptance Policy and Procedure AGE of Central Texas (legal name: Austin Groups for the Elderly) welcomes outright gifts and future gift commitments that are consistent with its
Development Policies and Procedures Purpose: The purpose of this policy is to: Establish procedures for all fundraising on behalf of Habitat for Humanity of Greater Baton Rouge(HFHGBR) Establish guidelines
Unitarian Universalist Church of the North Hills (UUCNH) Title: Gift Acceptance Policy Effective date: 1-9-2014 Purpose This policy is designed to provide guidance to the UUCNH community so as to facilitate
Corridor Goals and Objectives This chapter presents the goals and objectives, developed by the Corridor Study Committee, that serve as the purpose and intent of the Corridor Plan. This plan covers a twenty
Veterans or Veterans Widow Credit Must own property on April 1 of year of application. Must be NH resident for 1 year prior to April 1 of the application year. Must be residential property. Must notify
No. 75 August, 1994 Hiring a Consulting Forester Jeff Martin What is a Consulting Forester? An independent consulting forester (consultant) is a trained professional forester that operates or works for
TILA Higher Priced Mortgage Loans Appraisal Rule Promote the informed use of consumer credit by requiring disclosures about its costs and terms Purpose of the TILA HPML Appraisal Rule: Congress enacted
Page 1 of 9 2.90.010: PURPOSE: Chapter 2.90 OPEN SPACE LANDS PROGRAM The Salt Lake City open space lands program, fund and advisory board are established to facilitate the city's acquisition, management,
Part I Section 61.--Gross Income Defined 26 CFR 1.61-6: Gains derived from dealings in property. (Also 82, 1001; 1.82-1, 1.6045-4) Rev. Rul. 2005-74 ISSUE Whether the transactions in the following situations
NON-RESIDENTS PURCHASING REAL PROPERTY IN THE U.S. A. The Attorneys Role in the Purchase of Real Estate The purchase of real estate in the U.S. without the proper assistance can become a complex transaction.
U.S. Department of the Interior Bureau of Land Management Cadastral Survey Management of Land Boundaries Absolutely fundamental to orderly, systematic land management is to know with a degree of certainty
STATE OF NORTH CAROLINA ) ) COUNTY OF MECKLENBURG ) POSTNUPTIAL AGREEMENT THIS POSTNUPTIAL AGREEMENT ( Agreement ), is made this day of, 20, between *MAN*, a resident and domiciliary of Mecklenburg County,
MARYLAND STATUTORY FORM LIMITED POWER OF ATTORNEY PLEASE READ CAREFULLY This power of attorney authorizes another person (your agent) to make decisions concerning your property for you (the principal).
Door County Zoning Introduction Door County has a comprehensive Zoning Ordinance that contains wetland conservation provisions. Shoreland-Wetland zoning provisions are enforced in all unincorporated areas
2015 Instructions for Schedule D (Form 990) Supplemental Financial Statements Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted.
conservation & historic preservation easements to preserve North Carolina s heritage Charles E. Roe and Camilla M. Herlevich Second edition by Camilla M. Herlevich and Lee Lewis Leidy conservation & historic
CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website is intended
Disposal of Surplus Property A Roadmap to Establishing Effective Surplus Property Procedures Turn Surplus Properties From Management Headache Funds For Your Next Project to Funds for New Project Excess
Massachuses A Landowner s Guide to the Wetlands Reserve Program (WRP) M.W. NELSON CATHERINE ULITSKY LIZ WILLEY DIANE PETIT, NRCS July 2011 Helping People Help the Land www.ma.nrcs.usda.gov USDA is an equal
A Legal Checklist for Not-for-Profit Organizations This 10-point checklist is written to help busy charitable organizations stay on top of today s regulatory compliance requirements. For further information,
Federal Tax Credits for Historic Preservation Introduction The Federal Historic Preservation Tax Incentive is described here in general terms only. More detailed information, including copies of application
TITLE INSURANCE AND COMMON ENDORSEMENTS By: Daniel Goodwin and Robert Beach Maximizing Coverage: Commercial real estate purchasers title insurance a contract of insurance between a title company and the
Title 13-B: MAINE NONPROFIT CORPORATION ACT Chapter 2: CORPORATE PURPOSES AND POWERS Table of Contents Section 201. PURPOSES... 3 Section 202. GENERAL POWERS... 4 Section 203. DEFENSE OF ULTRA VIRES...