A Conservation Easement Donation

A conservation easement is a restrictive covenant placed on all or a portion of a property for the purpose of conserving natural resources or restricting the use of such property. Conservations easements have been used widely for decades and are well recognized by all government authorities. The use of such devices has become common among entities such as partnerships, limited liability companies, professional associations and S or C corporations seeking favorable tax treatment when the easements they have perfected are transferred to a "qualified organization" such as a Land Trust or governmental agency capable of receiving such transfers.

Internal Revenue Code 26 CFR-1.170-14 provides statutory guidance for tax payers and their advisors planning such transactions. In its most simple form, the land owner maintains ownership of a property while its uses and therefore value is restricted by the easement. When diminution of a property's value occurs as a result of the placement of an easement and such easement is transferred to a qualified organization, certain tax benefits inure to the benefit of the transferor. Presupposing the transaction is carefully documented in ways prescribed by State regulators, the tax payer takes very little risk.

Six reasons why land conservation makes good economic sense:

1. Parks and open space often increase the value of nearby properties, along with property tax revenue. 2. Parks and open space attract businesses and trained employees in search of a high quality of life. 3. Parks and open space attract tourists and boost recreation spending. 4. Parks and open space reduce obesity and health care costs by supporting exercise and recreation. 5. Working lands, such as farms and forests, usually contribute more money to a community than the cost of the services they require.. 6. Conserved open space helps safeguard drinking water, clean the air, and prevent flooding - services provided much more expensively by other means. For more information on the economic benefits of parks and open space, go to www.tpl.org/benefits. source: The Trust for Public Land