Sometimes an owner of land with conservation value—including farmland or forestland—is interested in making a gift of the land but wants assurance that the land will not be developed in the future. Colgate University's Gift Planning Office has the experience to work with such owners to develop a gift plan that builds in the permanent protections of a conservation easement.
Conservation easements are legally binding deed restrictions that obligate all future owners of the land to the easement's prohibitions on development, subdivision, etc. When a qualified conservation easement is donated to a land trust or a unit of government, the owner is entitled to tax deductions equal to the amount of value that has been given up through imposition of the easement's restrictions. (In some cases, it is possible to sell a conservation easement as an alternative to donation.)
A conservation easement could be combined with a gift to Colgate like this: Colgate works with the landowner to identify a suitable land trust or government entity to hold and enforce the conservation easement. (Land trusts around the country can be found on the Web site of the Land Trust Alliance, www.ltanet.org/findlandtrust/). The property owner then donates a conservation easement to such a land trust, obtains a qualified appraisal of the donated easement, and triggers a tax deduction for the value given up. Then the property owner donates the land, restricted by the terms of the conservation easement, to Colgate, triggering a second tax deduction for the value of the easement-encumbered land. Finally, Colgate finds a buyer for the easement-restricted land, selling the land at a price reflecting the limited allowable uses of the property. In such a situation, the two deductions available to the landowner would presumably equal the tax deduction that would be available if the land were simply donated outright, without any conservation easement in place.
For owners of land worthy of such protection, this would be a win-win-win arrangement. The land is permanently protected, tax deductions equal to the fair-market value of the unrestricted land are available, Colgate receives a substantial gift, and the land is made available to a subsequent owner at a reduced price.
The discussion herein is general in nature and may not apply to all individuals. Prospective donors are urged to consult their personal tax and financial advisors concerning the specific consequences of making gifts to Colgate. We would be pleased to discuss, in confidence, ways in which you may support Colgate. These measures may also have an impact on your estate planning.
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