2022 Schedule – Central Time

Land conservation projects are, at their core, sophisticated real estate transactions. This workshop will acquaint participants with basic real estate concepts, legal elements of real estate transactions, and outline the acquisition process from property identification through title searches and related due diligence to closing. Emphasis will be placed on basic legal terminology, possible pitfalls, and practical advice. The topics will include: types of ownership and how interests in property can be held by different people; title searches, title insurance, and problems; liens and encumbrances; surveys and legal descriptions; due diligence and liability; letters of intent, purchase contracts, options, and rights of first refusal; basic information on deeds, conservation easements and other documents; and closing and recording.

At the moment there seems to be no clear guidance on whether or how to draft rules in a conservation easement, including in particular an amendment provision, that are certainly going to be necessary for some properties at some point in the future, that will (1) protect the conservation values in perpetuity, (2) address very real land use and reserved-rights issues created by climate change or other natural changes to the landscape (see pdf attached to this proposal), and (3) will potentially withstand an IRS challenge to deductibility of the conservation easement solely or in part because of such provision or provisions. We will discuss the issues and offer (and invite) suggestions.

When is the last time you looked at the criteria you use to select your organization’s prospective conservation projects? If it’s been a few years, it may be time to revisit your conservation priorities to incorporate equity and climate. Join us as we explore how to incorporate climate, mission, and equity values when creating (or revising) project selection criteria for current and new projects. This session includes discussion where participants fill the role of lands committee members tasked with providing guidance for a “green light” or hard “no” on complex acquisition projects. This interactive session will sharpen your focus on key parts of the acquisition process that may have significant implications on the permanence of your conservation work and your land trust’s relations with its community.

Iowa Natural Heritage Foundation has been utilizing Donations with Reserved Life Estate to increase impact in conservation and provide immediate benefits to their donors. INHF land projects and development staff will share their experience of what it takes to make RLEs an effective tool, including case studies of specific scenarios involving natural land, agricultural land, and land that includes infrastructure. What are the legal implications? Why would a donor want to make a donation with reserved life estate? What are the risks and what are the rewards for INHF to accept such a donation? When would we say “no”? And once the deal is done, what’s needed to maintain a positive and potentially long-term relationship?

The Senate Finance Committee issued a report in 2020 documenting the abuses it found in reviews of appraisals supporting syndicated conservation easements. This session will summarize those abuses and present the lessons for land trusts from the recent experience of three JLL appraisers retained by the IRS and the DOJ to review more than 100 syndicated easement appraisals. The session will summarize the critical elements of an appraisal report that must be included to comply with IRS and USPAP requirements and how the National Conservation Easement Data Base can be used by land trust to assure quality appraisals. It will also present a review checklist that can assist land trusts in working through an appraisal review.

A well-stocked toolbox is critical to build trust with landowners and construct successful land conservation projects! This session will introduce newer land protection staff (and experienced staff looking for a refresher on the basics or information on a tool they have not yet used) to available tools for real estate conservation, including fee acquisitions (with discussion of like-kind exchanges, bargain sales, gifts of real estate, landowner reserved rights, and gifts after a donor’s lifetime), as well as conservation easements and other “less-than-fee” tools. You will learn how to decide which tool will best meet the landowner’s and land trust’s conservation goals, while minimizing risk to the land trust. You’ll also learn about the pros and cons of each tool; tips for anticipating changes in land ownership and on the land to ensure the tool you choose provides lasting conservation benefits; which Land Trust Standards and Practices apply to each tool; and then you’ll put your knowledge to the test in a small-group discussion of a “real-life” conservation project.

Correctly completing Form 8283 can make or break a conservation easement deduction and the IRS issued a new version of this form in Dec. 2020. The IRS has fully denied deductions because of improperly completed forms or the lack of required documentation. A contemporaneous written acknowledgement is required to be received by the donor for the donation to be deductible. Knowing what transaction expenses are deductible is also critical, as many are unaware that reimbursing a landowner for such expenses could render the donation a "bargain sale." While donors are legally responsible for substantiating donations, land trusts may assist donors to understand the forms, so long as they don't provide legal advice. The session will also discuss how a donee organization should review a donor's appraisal, what to do if the claimed value is so high as to "shock the conscience," and recent changes to Land Trust Standards and Practices and recent court cases related to Form 8283 and gift letters. This is an abbreviated version of the seminar offered by the presenters and appraiser Mark Weston on Thursday. That session will include hands-on exercises and more detail on federal tax and qualified appraisals; there is no need to attend this session if you attend the seminar.

Cases are coming in red hot from the courts and IRS! We’ll bring everyone up to speed on the latest developments in tax-related case law and actions to curtail conservation easement syndicated deals.