Non-Profit land trusts and historic preservation groups have formed in every country for the sole purpose of conserving land and historic properties. They have been very creative in developing procedures for conservation that have been supported by laws at every level of government. Many citizens are familiar with the way that a land trust operates; but do not know that historic preservation organizations use similar methods to accomplish their goal of conserving historic properties.

A land trust is a private non-profit tax-exempt corporation that seeks to preserve land through real estate, transactions, i.e. an outright gift of the land, a conservation easement or simply buying the land. Most gifts of land are in the form of "conservation easements', a legal agreement between a landowner and a land trust which restricts or prohibits certain uses of the land. The exact nature of the restrictions is negotiated between the owner and the land trust to their mutual satisfaction.

The landowner still owns the property and can use it, sell it, or leave it to heirs; but the restrictions go with the property forever, as perpetual recorded deed restrictions. The land trust has the responsibility to see that the restrictions are upheld. Since restricting the development potential of the land usually lowers the value of the property, the federal government recognizes it as a charitable gift to the public and allows the landowner a tax deduction (if the restrictions also benefit the public by protecting scenic open space or historic areas). When the landowner gives entire ownership of the property and all the right deriving therefrom to the trust, this is called a "fee simple gift."

If the property has conservation value, the trust will hold the property indefinitely, lease it or put appropriate restrictions on the property and sell it. If the property does not have conservation value, the land trust will eventually sell the property and put the proceeds toward further conservation work. Additionally, a land trust may receive cash donations that allow it to buy the land outright; however, this is usually a very costly route to pursue.

Similarly, historic preservation organizations use these methods to assure the preservation of important historic properties. These organizations buy properties, sell properties for profit, and put restrictions on the property when they sell it. They also assist private individuals in the acquisition and/or restoration of their historic properties. To assure the protection of the property, the owner donates a preservation easement on the property to the organization to hold in perpetuity. The owner then receives a federal tax benefit based on the difference between the unrestricted fair market value of the property and the projected market value after the easement is given.

The terms of the preservation easement may include negative covenants prohibiting the owner from making alterations to the property without design review and approval by the holder of the easement. Or the easement may impose positive covenants that require the owner to make certain improvements to the property. These covenants are attached to the deed, and the organization is responsible for seeing that the covenants are upheld.

Additionally, preservation easements generally contain an endowment or stewardship fund that is also donated by the owner of the property to the holder of the easement. This endowment provides the funds needed for any future expenses associated with managing the easement. For example, there may be future legal expenses pertaining to the management of the easement; the expenses would then be paid out of the endowment fund. This endowment can only be used for the management of the easement associated with that designated property.

In conclusion, the purpose of land trusts and historic preservation organizations can be closely aligned -especially for preserving historic landscapes and agricultural areas. Historic Fort Collins Development Corporation has been contacted about receiving easements for historic properties; and it will be an effective preservation method for this non-profit organization to use in the future.