What Is A Land Trust?
Southern Conservation Trust is a land trust -- a private, non-profit organization that partners with landowners who want to protect their property from development. Land can be donated to the Trust outright, but the most common method of protection is creation of a conservation easement.

The Land Trust Movement
Although land trusts have been protecting lands in the United States for over a century, most have been founded since 1970. In 1965 there were 132 active land trusts across the United States. By 1996 the number had increased to over 1100, preserving more than 3 million acres of valuable lands. Community land trusts have helped to conserve lands along the California coast at Big Sur, in the Rocky Mountains near Jackson Hole, Wyoming, in Kentucky’s bluegrass country, along the Appalachian Trail, and within New York’s Adirondack Mountains. There are 30 land trusts in Georgia wich have protected extensive areas of mountain ridge, coastline, wildlife habitat, and recreational open space.  

Tax Benefits for Conservation
In order to provide tax benefits to donors, land trusts follow strict state and federal guidelines to organize and operate as non-profit, tax-exempt, charitable corporations. Federal policy recognizes that conservation of natural sites benefits the public. To support this activity, income tax deductions are allowed for the value of donated property or of a conservation easement, provided that the donation is granted in perpetuity and to a qualified conservancy organization, such as Southern Conservation Trust. Under federal estate tax guidelines, donation of a qualified conservation easement may also reduce the inheritance tax obligation of a property owner’s estate.

In 2006 the Georgia state legislature approved the Conservation Tax Credit Program, which provides for a income tax credit for conservation.  To qualify for the tax credit, the donation or easement must be certified by the Georgia Dept. of Natural Resources.  Southern Conservation Trust helps landowners through this process.  For more information click on THIS LINK.

What is a Conservation Easement?
A conservation easement is a binding legal agreement which prevents future development and perpetually restricts the use of land to activities which do not degrade its resources. Landowners can place such protections on their property by simple deed restrictions, but without creation of an easement there is no provision for enforcement. Additionally, there are no tax benefits for a deed restriction, because there is no formal monitoring or enforcement provision. It is the role of the land trust is to enforce the terms of the easement in perpetuity.
Conservation easements are not the right choice for all landowners. Land trusts can provide information on other protection options, and can refer landowners to professionals who specialize in land protection and in tax and estate planning.

What Kinds of Properties are Eligible? IRS and state regulations require that the purpose of a conservation easement be to maintain land in a natural condition for the preservation of wildlife habitat or scenic views, for agricultural/forestry or recreational use, or for conservation of buildings of historic or architectural value. Thus, any property that possesses one or more of these values is potentially eligible.  

Would I be Giving up Ownership? No. The key feature of an easement is that the property remains in private ownership. It can be used for ranching, family residence, or any other activity that is compatible with the conservation goals of the easement. The only uses that are restricted are those spelled out in the easement document.  

Can I Sell or Mortgage My Property? Yes. The easement is transferred with title to the property, and is binding on subsequent owners. Lenders must be informed of the easement and must "subordinate" their claim, which means that they accept its provisions. This is necessary because creation of a conservation easement affects the market value of your property.  

Do I Have to Allow the Public onto My Property? No. The only access you must grant is for periodic inspection by the land trust to ensure that the terms of the easement are being met.  
Both IRS regulations and the goals of Southern Conservation Trust require that certain uses will always be prohibited, such as mining. Other activities may be compatible with the purposes of an easement for one property, but not for another. For example, grazing would always be part of a farming operation, but it might be excluded on another property where an easement was created to protect a rare plant community. Similarly, logging might be excluded where an easement is intended to protect soil in a watershed, but selective harvesting allowed where the intent is to conserve and diversify wildlife habitat.

Does an Easement have to Include All My Property? No. Many landowners, particularly those whose only large asset is their land, exclude a portion of the property for future sale or for homesites for family members. Protection of part of your property by easement may increase the value of adjacent building sites.  

How Long does an Easement Last? In short – forever. Only easements "in perpetuity" are recognized by the IRS and the state of Georgia for tax benefits, and only easements in perpetuity are accepted by most land trusts.  

What will it Cost Me?
You will need a lawyer, an appraiser, and possibly a financial advisor. You may need an updated property survey. The Trust can refer you to professionals who specialize in conservation easements. Besides these costs you will be asked to make a donation to the land trust as an endowment for monitoring and enforcement of the easement on your property. These costs may be substantial, but in most cases the amount required is much less than the IRS benefit. Typically the endowment donation is tax deductible.
For landowners who are "land rich and cash poor," however, the income tax benefit is of little help in offsetting the costs of an easement. In some cases, grant money is available to cover landowner expenses.

What is the IRS Benefit?
Federal policy recognizes that conservation of natural sites benefits the public. To support that activity, income tax deductions are allowed for the value a conservation easement. The value of an easement is the difference between the value of your land now and the value of your land once it is no longer eligible for development.
For example, if your property is worth one million dollars as potential development land, but worth only $600,000 when protected by an easement, you have created a $400,000 charitable donation to the land trust wich holds your easement. Income tax deductions are allowed for that donation, provided that the donation is granted in perpetuity and to a qualified organization such as Southern Conservation Trust. Land trusts follow strict state and federal guidelines to organize and operate as non-profit, tax-exempt, charitable corporations, in order to provide these tax benefits to donors. IRS regulations allow deductions to be spread over a number of years. A reduction in the market value of your property may also affect estate taxes.

How Much Will My Tax Benefit Be?
In general the IRS provides that a landowner may deduct up to 30% of Adjusted Gross Income (50% for 2007) in any year, with a carry-over period of five additional years (15 years in 2007.)

Georgia allows a landowner a tax credit in any one year of up to $250,000 for individual taxpayers and $500,000 for corporations, but no more than $500,000 or 25% of the value of each conservation donation, whichever is less. The carry-over period is five years.

The answer to this question for your conservation donation will depend on the details of your financial situation and on the value of land in your immediate location. It can only be answered by qualified professionals working closely and confidentially with you to appraise your property and plan your easement.  

What is a PDR (Purchase of Development Rights)?
A PDR is a conservation easement created by the outright purchase of development rights on your property. This program is in effect in the rural portion of South Fulton called Chattahoochee Hill Country ("CHC"). The Trust is the land trust partner with the CHC Conservancy, which purchases development rights so they may be sold to developers for use in planned high density villages. As with any other easement, you retain ownership of your property and may use it in any manner that is compatible with the stated purposes of the easement. A PDR easement allows you to protect your property from development at the same time that you raise cash from its value. Because of the great expense involved, development rights are generally purchased at less than their full value.

As in the previous example, if your property is worth a million dollars now and would be worth $600,000 with an easement in place, the development rights have been valued at $400,000. If these rights are sold for $200,000, the remaining $200,000 in value would be considered a charitable donation to the land trust, which you could then apply against income taxes as described above.

For more information about the PDR program in the Chattahoochee Hill Country, click on THIS LINK.

What is the Role of Southern Conservation Trust?
The Trust will evaluate your property for suitability and talk to you about your conservation and financial goals. All consultation and planning remains confidential. The Trust will provide a model easement document and explain its provisions, then work with you and your lawyer to customize the details to conform as much as possible to your individual goals concerning the protection of your property. These details must remain within guidelines required by the IRS, the state of Georgia and by the goals of the Trust as stated in its bylaws.
During this process, the Trust staff may refer you to professionals who specialize in land conservation or financial planning, or to other organizations or public agencies that may be of help in your decision-making.

Once the easement is completed, Southern Conservation Trust assumes both the right and the responsibility to enforce it. Easement documents are designed to be clear and enforceable far into the future. While most conflicts can be resolved in a less drastic manner, easements are ultimately enforceable by a court of law. Thus, you can be confident that though you may have passed away, sold your land, or given it to an heir, it will be protected.

Who runs Southern Conservation Trust? It could be you! The Trust is a community nonprofit organization comprised of local residents and property owners in the Southern Crescent. Membership is open to all, and board meetings are open to the public. Volunteers are needed in the areas of land preservation, finance, fundraising, and organizational development. No prior experience in land protection is required.

Who Funds Southern Conservation Trust? Funding sources include private foundations, local business, and YOU.

I Have Heard About “Conservation Subdivisons”. What Does That Mean?
A conservation subdivision is one in which a limited number of lots are sold to generate revenue to allow for the preservation of the balance of the property. For example, instead of cutting a 500-acre farm into 250 2-acre lots, you might create 250 1-acre lots in one or more "clusters" on the land and keep the remaining 250 acres in open space or agriculture, protected by an easement. Profitability is maximized in two ways. First, proximity to protected views enhances the value of the lots created. Second, the construction of infrastructure, such as roads and power lines, is generally less expensive for clustered lots than for scattered ones.

Recent local planning ordinances are designed to make it easier to create this kind of development that offers benefits to the new residents, the community and wildlife. However, because the easement is required by the zoning code or subdivision regulations, there is no tax benefit available to the landowner. 


Do you own a property that you would like to preserve?  If you would like to discuss permanent protection, and the possibility of tax deductions, please contact Southern Conservation Trust today!
770-486-7774 or info@sctlandtrust.org