Expected Project Costs

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Donating a conservation easement can be a personally and financially rewarding process. However, there are numerous legal, real estate and financial issues that must be considered, and landowners should be prepared to work with Tar River Land Conservancy through a multi- step process in order to complete their project.

In most cases, the landowner covers the transaction costs associated with the donation of their easement. However, when the landowner is claiming tax deductions for the donation, these transaction costs are typically much less that the tax benefits received. These costs are also tax deductible. In cases where the landowner is unable to cover transaction costs, TRLC may be able to find alternative methods for funding the project. Please note that finding alternative methods of funding usually lengthens the time necessary to complete a project by several months.

Legal and other professional fees – Though TRLC will be the one to draft all the necessary documents, landowners should employ their own legal counsel. If income tax and estate planning plays a major role in the project, the landowner should also consider working with a financial advisor.

Appraisal – In order to claim a tax deduction for the donation of an easement as a charitable gift, the property will need to be valued by a qualified appraiser. TRLC is not responsible for the cost of the appraiser.

Baseline Document – In order to obtain a federal income tax deduction or N.C. income tax credit for a conservation easement, the landowner must obtain a document that outlines the physical characteristics of the property at the time of the donation. This baseline document allows TRLC to maintain a record of what structures and natural features existed on the property when the easement was recorded, and to track any changes that take place on the property in the future.

Survey – Depending on the quality of existing maps, plats, legal descriptions, boundary conditions and terms of the easement, some survey work may need to take place.

TRLC Expenses – Tar River Land Conservancy will commit substantial amounts of staff time and resources to each project. The amount of time invested will vary due to the size and character of each property and the complexity of each easement. However, TRLC's typical expenses include the time required to evaluate each potential project, develop a strategy for its execution, prepare a project proposal for the landowner, create a baseline document, draft the easement, seek and secure additional funding for the project when necessary, and facilitate the project to closure.

Stewardship Endowment Contribution – Given the permanent nature of easements and the future stewardship responsibilities Tar River Land Conservancy takes for each property, a one-time contribution to the TRLC stewardship endowment fund is requested from each landowner. The amount is different for each project and will be based on the specific terms of your conservation easement. These contributions are considered to be charitable gifts for federal income tax purposes and therefore are deductible.