Land Donation
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Donating land for conservation purposes is truly one of the finest legacies a person can leave to future generations.
It may be the best conservation strategy for you if...
- you
do not wish to pass the land on to heirs;
- you
have substantial real estate holdings and wish to reduce estate tax burdens;
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you would like to be relieved of the responsibility of managing and caring for land;
- you would like to provide the community with a natural area for education and enjoyment.
Donating land releases you from the responsibility of managing the land and can provide substantial income tax deductions and estate tax benefits (while avoiding capital gains taxes that would have resulted from selling the property).
Most important, if land is donated because of its conservation value, it will be protected. Although, commercial and residential properties can also be donated to GVC (see below).
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Land donation
Donate land outright to GVC. GVC will work with you to develop a plan for your donated property. GVC typically manages owned land to provide public access for the community to the natural area while managing the property to provide for plant and wildlife habitat. GVC also partners with local educational facilities to provide learning opportunities for local students.
Visit the Island Preserve page to learn about this property that was donated to GVC and is now managed for public access, education, and habitat.
Donating a remainder interest in land
An outright donation is not the only way to give land. You can continue to live on the land by donating a remainder interest and retaining a reserved life estate.
In this arrangement, you donate the property during your lifetime, but continue to live on and use the property. When you pass away (or sooner if you choose), the land trust gains full title and control over the property. Depending on the arrangement, GVC can maintain title to the property and manage it as a public preserve, or can sell the property as a fundraiser subject to a conservation easement that will protect the important values of your land.
By donating a remainder interest, you can continue to enjoy your land and may be eligible for an income tax deduction when the gift is made. The deduction is based on the fair market value of the donated property less the expected value of the reserved life estate.
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Land donations that establish a life income
If you have land you would like to protect by donating it to a land trust, but need to receive income during your lifetime, you might use a charitable gift annuity.
In a charitable gift annuity, you agree to transfer certain property to a charity, and the charity agrees to make regular annuity payments to one or two beneficiaries you specify for life.
Charitable remainder unitrust
Another option for donating property and receiving regular income is a charitable remainder unitrust. You place the land in a trust, first putting a conservation easement on the property if it is to be protected. Then the trustee sells the land and invests the net proceeds from the sale. One or more beneficiaries you specify receive payments each year for a fixed term or for life, then the trustee turns the remaining funds in the trust over to the land trust.
The gift qualifies for a charitable income tax deduction when the land is put in the trust, based on the value of the land less the expected value of the payments. Charitable gift annuities and charitable remainder unitrusts are most useful for highly appreciated land, the sale of which would incur high capital gains tax. |
Donating land by will
If you want to own and control your land during your lifetime, but assure its protection after your death, you can donate it by will. You should contact GVC before setting up such an arrangement to ensure that GVC is willing and able to receive the gift and carry out your wishes.
Other donations (residential / commercial)
GVC will accept residential and commercial property donations with the understanding that GVC will sell these properties as a fundraiser to fund our conservation efforts.
The cash income from such a sale can be a tremendous support to GVC and our conservation projects. Such a donation is a great way for all individuals, not just owners of large land tracts, to contribute to GVC's conservation goals.
Tax benefits of donating gifts of land
Your gift of land usually qualifies for a charitable income tax deduction at the time of the gift, based on the value of the land
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