Introduction to Conservation Easement Donations
What is a conservation easement?
A conservation easement is a voluntary agreement between a landowner and a qualified conservation easement ‘Holder’, a 501C-3 land trust or other qualified government entity, that establishes restrictive covenants on all or a portion of a property, in perpetuity.
This agreement negotiated between the landowner and the qualified conservation easement holder establishes limits on how the landowner’s property will be used in the future. A conservation easement is legally binding on all future landowners and will protect the land from development and uses that are inconsistent with the defined conservation purpose of the easement, while allowing the landowner to retain the rights of private ownership.
How can MTM help?
Conservation easements are tailored to the land and the landowner. We can help you to think about the present and potential future uses of your property and the reserved rights you want to preserve to maintain these uses. Assisting landowners in their efforts to permanently protect their land is our primary focus.
We know how to effectively facilitate the conservation easement donation process by working efficiently and supportively with you, the landowner, the conservation easement holder, and your legal, financial, forestry and appraisal advisors. We can work with you, the donor, and conservation easement holders to negotiate the terms and establish limits on how a given property will be used in the future.
Will my land qualify?
A variety of existing land uses have potential. The land should be largely undeveloped, but may be composed of working forest or cropland, bottomland hardwood or mesic forests, creeks or rivers, meadows or orchards.
For IRS purposes, an easement must contain at least one of the following ‘Conservation Values’, as defined by the IRS:
- Open space (including farmland and forest land) that is either:
- Preserved for the scenic enjoyment of the general public, or
- Protected pursuant to clearly delineated federal, state, or local government conservation policy and that will yield a significant public benefit;
- Protection of a relatively natural habitat for fish, wildlife, or plants, or similar ecosystems;
- Outdoor or educational use by the general public; or
- The preservation of a historically important land area or certified historic structure.
The Who, What, and Why
The Rights and Restrictions
The Process
Once you have a basic understanding of how the process works and have decided you are interested in looking into it further, you will want to coordinate a site visit on the property with us and/or a potential qualified conservation easement holder. This initial site visit will begin the process for evaluating the existing conservation value, and then creating the necessary documents to complete the donation.
I’m interested… what should I do first?
Call MTM Environmental, LLC! We can get you started, help you find a conservation easement holder, and introduce you to highly experienced attorneys, appraisers, accountants, and any other professionals you need to help you with your decision. Once you decide to move forward, we will work closely with you and your advisors through each step of the donation process.
*Note: We cannot guarantee that there will not be an audit of the conservation easement, or that the conservation easement donation will qualify for a federal tax deduction and/or state tax credits. We will offer the best professional advice available to ensure the conservation easement and accompanying documents are accurate and in compliance with federal, state and local laws and best management practices.
** Note this is not a substitution for review of an appraisal report by another qualified appraiser, nor is this a guarantee of the accuracy of the valuation determined by the appraiser(s). We are not appraisers qualified to determine the value of a conservation easement but we do have extensive experience reviewing conservation easement appraisal reports and IRS Form 8283 for consistency with the conservation easement documents.