Frequently Asked Questions
Land
Trusts
What is a Land Trust?
A land trust is a
nonprofit organization that, as all or part of its mission, actively works
to conserve land by undertaking or assisting in land or conservation easement acquisition, or by its stewardship of such land or easements.
Are land trusts government
agencies?
No, they are independent, entrepreneurial organizations that work with
landowners who are interested in protecting open space. But land trusts
often work cooperatively with government agencies by acquiring or managing
land, researching open space needs and priorities, or assisting in the
development of open space plans.
So, what are the advantages
of working with a land trust?
Land trusts are very closely tied to the communities in which they operate.
Moreover, land trusts' nonprofit tax status brings them a variety of tax
benefits. Donations of land, conservation easements or money may qualify
you for income or gift tax savings. Moreover,
because they are private organizations, land trusts can be more flexible
and creative than public agencies - and can act more quickly - in saving
land.
UPDATE: In August 2006 legislation was enacted increasing the tax benefit for donations of conservation easements. Learn more!
What does a land trust do?
Local and regional land trusts, organized as charitable organizations
under federal tax laws, are directly involved in conserving land for its
natural, recreational, scenic, historical and productive values. Land
trusts can purchase land for permanent protection, or they may use one
of several other methods: accept
donations of land or the funds to purchase land, accept a bequest,
or accept the donation of a conservation
easement, which permanently limits the type and scope of development
that can take place on the land. In some instances, land trusts also purchase
conservation easements.
I first heard about land
trusts just a few years ago. Are they new?
Not at all! A very few land trusts have already celebrated their centennials,
but most are much younger. In 1950, for example, just 53 land trusts
operated in 26 states. Today, more than 1,600 land trusts operate across
the country, serving every state in the nation. The Northeast, home
of the first land trust, still has the most land trusts - 581, according
to the Land Trust Alliance's most recent National Land Trust Census.
What has contributed to
the huge growth in the number of land trusts?
People are tremendously concerned about the unmitigated loss of open space
in their own communities. They see subdivisions supplanting the open spaces
where they once walked and hiked, and they want to know how they can gain
the power to save the green spaces that make their communities unique.
So they turn to land trusts as the local entities that have been set up
to conserve land.
How do I start a land
trust in my community?
Land trusts are extremely effective vehicles for conserving land. But
with more than 1,600 land trusts already in existence, starting a new
land trust may not be necessary, timely, or the best approach to achieving
your community's conservation goals. Given the time and effort it takes
to run a land trust and the long-term commitment needed to protect land
in perpetuity, the Land Trust Alliance encourages you to work with an
existing land trust whenever possible.
If you do decide to establish a land trust here is some additional information.
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Conservation
Easements
What is
a Conservation Easement?
A conservation easement
(or conservation restriction) is a legal agreement between a landowner
and a land trust or government agency that permanently limits uses of
the land in order to protect its conservation values. It allows you to
continue to own and use your land and to sell it or pass it on to heirs.
When you donate a conservation
easement to a land trust, you give up some of the rights associated with
the land. For example, you might give up the right to build additional
structures, while retaining the right to grow crops. Future owners also
will be bound by the easement's terms. The land trust is responsible for
making sure the easement's terms are followed.
Conservation easements offer
great flexibility. An easement on property containing rare wildlife habitat
might prohibit any development, for example, while one on a farm might
allow continued farming and the building of additional agricultural structures.
An easement may apply to just a portion of the property, and need not
require public access.
A landowner sometimes sells
a conservation easement, but usually easements are donated. If the donation
benefits the public by permanently protecting important conservation resources
and meets other federal tax code requirements it can qualify as a tax-deductible
charitable donation. The amount of the donation is the difference between
the land's value with the easement and its value without the easement.
Placing an easement on your property may or may not result in property
tax savings.
Perhaps most important, a conservation
easement can be essential for passing land on to the next generation.
By removing the land's development potential, the easement lowers its
market value, which in turn lowers estate tax. Whether the easement is
donated during life or by will, it can make a critical difference in the
heirs' ability to keep the land intact.
UPDATE: In August 2006 legislation was enacted increasing the tax benefit for donations of conservation easements. Learn more!
Why
should I grant a conservation easement to a land trust?
People execute a conservation easement because they love their open space
land, and want to protect their land from inappropriate development while
keeping their private ownership of the property. Granting an easement
to a conservation organization that qualifies under the Internal Revenue
Code as a "public charity" - which nearly all land trusts do
- can yield income tax savings. Moreover, land trusts, some
of which are more than 100 years old, have the expertise and experience
to work with landowners and ensure that the land will remain as permanent
open space.
UPDATE: In August 2006 legislation was enacted increasing the tax benefit for donations of conservation easements. Learn more!
Are conservation easements
popular?
They are very popular. In the 5 years between 2000 and 2005, the amount
of land protected by local and state land trusts using easements
doubled to 6.2 million acres. Landowners have found
that conservation easements can be flexible tools, and yet provide a
permanent guarantee that the land won't ever be developed. Conservation
easements are used to protect all types of land, including coastlines;
farm and ranchland; historical or cultural landscapes; scenic views;
streams and rivers; trails; wetlands; wildlife areas; and working forests.
How can a conservation easement
be tailored to my needs and desires?
An easement restricts development to the degree that is necessary to protect
the significant conservation values of that particular property. Sometimes
this totally prohibits construction, and sometimes it doesn't. Landowners
and land trusts, working together, can write conservation easements that
reflect both the landowner's desires and the need to protect conservation
values. Even the most restrictive easements typically permit landowners
to continue such traditional uses of the land as farming and ranching.
What steps do I take to
write a conservation easement?
First, contact a land trust in
your community to become acquainted with the organization and the services
they can provide. Explore with them the conservation values you want to
protect on the land. Discuss with the land trust what you want to accomplish,
and what development rights you may want to retain. For example, you may
already have one home on your property and want to preserve the right
to build another home. That is one provision that must be specifically
written into an easement agreement. Always consult with other family members
regarding an easement, and remember that you should consult with your
own attorney or financial advisor regarding such a substantial decision.
How long does a conservation
easement last?
Most easements "run with the land," binding the original owner
and all subsequent owners to the easement's restrictions. Only gifts of
perpetual easements can qualify for income and estate tax benefits. The
easement is recorded at the county or town records office so that all
future owners and lenders will learn about the restrictions when they
obtain title reports.
What are a land trust's
responsibilities regarding conservation easements?
The land trust is responsible for enforcing the restrictions that the
easement document spells out. Therefore, the land trust monitors the property
on a regular basis -- typically once a year - to determine that the property
remains in the condition prescribed by the easement document. The land
trust maintains written records of these monitoring visits, which also
provide the landowner a chance to keep in touch with the land trust. Many
land trusts establish endowments to provide for long-term stewardship
of the easements they hold.
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Benefits
of Conservation
What are the economic
impacts to my community of conserving open space?
Many reports have shown that conserving open space in communities around
the U.S. attracts jobs, enhances property values, and saves billions in
government costs. Read more
about these studies.
Are there tax benefits associated
with land protection?
There may be income and property tax benefits for donating your
land, donating a conservation easement, or selling the property as a "bargain
sale" at below market value. The amount and type of tax benefits
depends on a variety of factors, including the legal tool you've used
to protect you land, the value of the donation, your income level and
the total amount of your estate. Again, you should consult with a financial
advisor and/or an attorney to fully understand the tax implications. Land Trust Alliance
sells a variety of books and pamphlets that provide basic information
on this subject.
UPDATE: In August 2006 legislation was enacted increasing the tax benefit for donations of conservation easements. Learn more!
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How can I protect my beautiful
open space land from future development?
By working with a nonprofit land trust, you can decide the best conservation tool to use to protect your land.
You can select from a number of tools, including the outright donation
of your property, the donation or sale of a conservation easement that
permanently restricts development, the bargain sale of your property,
and several other variations. You should always have legal advice before
embarking on such a decision.
Someone is about to
develop a beautiful piece of land in my community! What can I do to stop
it?
The U.S. Department of Agriculture's Natural Resources Conservation
Service reports that between 1997 and 2001, 2.2 million acres were lost
to development each year (2001 Annual Natural Resources
Inventory). The Land Trust Alliance's National
Land Trust Census
reports that from 2000 to 2005, local and statel land trusts conserved
open space at a rate of over 1,000,000 acres per year. Many of the
nation’s
land trusts were formed to address this problem – conserving our precious
landscapes before they are lost forever to development. However, whether
to develop or conserve a particular parcel of land is a complex decision
that depends on many criteria and local concerns.
The Land Trust Alliance itself
does not take positions for or against specific development projects
or acquire interest in land. We urge you to support your local land
trust that does. Go to our 'Find a Land Trust' map and click on your
state to see a listing of Land Trust Alliance member land trusts operating in your
area.
Please note that a land trust
must be selective in choosing land-saving projects. Unless the land trust
exercises care in choosing its projects, it may find itself stuck with
a property or a conservation easement that serves little public interest,
is very costly to manage, or does not really fit with the land trust's
purposes. A land trust that does not carefully select its projects may
open itself to public criticism, credibility problems and even legal problems.
So get to know your local land
trust and volunteer your time, support it financially, or even donate
land or a conservation easement. That way, you can help your community
protect the land that you think is culturally, economically or environmentally
important.
Also, you may want to get involved
in your state or local planning activities. Planning agencies often provide
opportunities for public input on development issues that affect citizens
and you can request to be placed on their mailing lists to receive updates
on current and future plans for your area. Citizen input can improve the
planning process and positively affect future developments that may otherwise
be detrimental to the overall health of your community.
Thank you for your interest
in saving land!
How can I help in achieving
the goal of land conservation?
About half of the nation's land trusts are staffed entirely by volunteers.
Other land trusts use volunteers on a continuing basis for various needs,
including, sometimes, in helping to manage the land. Land trusts, and
the Land Trust Alliance, depend on your membership dues and contributions
to save America's open spaces. Contact
your local land trust to find out how you can become active and supportive.
At the same time, consider joining the Land Trust Alliance.
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