The Southwest Michigan Land Conservancy helps people protect the local wild and scenic places they care most about.
There are two significant issues involved in land conservation and preservation: (1) selection and preservation of qualified properties, and (2) preserving SWMLC’s status as a qualified land conservation organization by the IRS and in the eyes of the community.
To address these issues, SWMLC has developed land preservation criteria that will assist SWMLC to evaluate properties for their conservation values and the ability of SWMLC to protect these values in perpetuity. U.S. Internal Revenue Code Section 170(h) is the basis of the land protection criteria.
U.S. Internal Revenue Code Section 170(h)(4) stipulates:
(A) In general, for purposes of this subsection, the term “conservation purpose” means (i) the preservation of land areas for outdoor recreation by, or the education of, the general public, (ii) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem, (iii) the preservation of open space (including farmland and forest land) where such preservation is (I) for the scenic enjoyment of the general public, or (II) pursuant to a clearly delineated Federal, State or local governmental conservation policy, and will yield a significant public benefit, or (iv) the preservation of an historically important land area or a certified historic structure.
Donated land can result in substantial income tax deductions, as the monetary value of the land can be considered a charitable contribution. Conservation easements qualify as charitable deductions from your income tax, as well, if certain IRS criteria are satisfied. Property, estate, and gift tax benefits may also be realized through the donation of a conservation easement. A bargain sale of land provides cash, avoids some capital gains tax, and entitles you to a charitable income tax deduction based on the difference between the land’s fair market value and its sale price.
We have a legal and ethical obligation to ensure that our land protection programs result in real public benefits and that SWMLC can carry out this protection in perpetuity. Each property must be evaluated with great care.
To qualify for the acceptance of donated land and conservation easements, SWMLC requires that the two criteria below are satisfied:
1. The land provides a significant public benefit.
2. In the instance of a conservation easement, the landowner accepts and agrees to SWMLC’s level of protection of the conservation values, and our ability to enforce the terms of the conservation easement.
In addition, a land project must possess one or more of the following attributes:
- natural area
- agricultural area
- recreational, scenic, or historic value
The Board of Directors makes the determination of acceptance for each land project on an individual basis.
