In some cases, a land trust may purchase land outright for conservation. Because these require a much higher level of fundraising and management commitment, they are less common. In some cases, the land trust does not hold the land forever, choosing instead to transfer it to a public agency for public use. This is often the case for parklands and trail routes that are purchased by land trusts. Most land trusts do not seek to own land forever, but will in some cases. We at the Land Conservancy do own a number of properties. We are holding them ourselves because they either generate sufficient income from land uses or are important restoration sites that have work underway.
Often, the sale of land to a land trust results in substantial capital gains tax. This tax burden is often deferred by a sale of the land at below market value. In this case, the land is less expensive for the land trust and the landowner receives the same benefits via a combination of tax relief and sale income. This type of transaction is called a "bargain sale".
The Land Conservancy is able to accept donated land if it is free of encumbrances and has been surveyed for toxic substances. The land must also meet our conservation criteria if is to be held for conservation purposes and the land trust must have a source of funds for land management. Potential land donors are encouraged to contact the Land Conservancy to discuss this process. The Land Conservancy may also accept land donations for the purpose of resale to raise funds for our conservation mission. In these cases the donor will be notified of this intent. We may also accept land with the intention of re-selling it to raise funds as well as for Conservation. We will record a Conservation Easement on the property during escrow. These lands will often allow some residential use. Land can be donated to the Land Conservancy as part of an estate planning tool such as a retained life state. In this transaction, a donor transfers title of the property to the land trust and is allowed to remain living on the property until their death, at which time the land trust accepts all rights to the land. This transaction is used to reduce the value of the taxable estate and can benefit donors with an income tax deduction as well.