• Home
  • How We Work
  • Where We Work
  • News Room
  • About Us
  • My Nature Page

The Nature Conservancy in Africa - Conservation in Africa

The Nature Conservancy in Asia Pacific - Conservation in Asia-Pacific

The Nature Conservancy in the Caribbean - Conservation in the Caribbean

The Nature Conservancy in Central America - Conservation in Central America

The Nature Conservancy in North America - Conservation in North America

The Nature Conservancy in the United States - Conservation in the United States

The Nature Conservancy in South America - Conservation in South America

Tax Considerations of Transferring Title

Goldenrod and wetlands at Lake Alexander Preserve

Goldenrod and wetlands at
Lake Alexander Preserve © Jim Gindorff

The provisions of the Internal Revenue Code encourage donations of land to The Nature Conservancy and other publicly supported nonprofit organizations. Individuals and corporations may deduct the full fair-market value of their gifts of land to the Conservancy on their federal income tax returns, subject to the limitations explained below. In addition, many states allow for similar tax benefits for state income taxes.

For the individual donor, the full fair-market value of long-term capital gain property (capital assets held for more than 12 months) is deductible, subject to the limitation that it can be deducted against up to 30 percent of your adjusted gross income (AGI) for the year of the donation. You may carry over the balance of the deduction for up to five succeeding years, subject to the same 30-percent-of-AGI limitation in each of those years.

For corporations, the deduction limit is 10 percent of the corporation's income before taxes. The same carry-over period applies.

These rules apply to all long-term capital gain property, including gifts of conservation easements and appreciated securities. It should be noted that gifts of capital assets held for 12 months or less and gifts of property that would generate ordinary income produce limited tax benefits. While these gifts can be deducted up to 50 percent of your adjusted gross income with the five-year, carry-forward benefit, you lose the benefit of any appreciation in value since the deduction is limited to the basis of the property.

In addition, stringent Internal Revenue Service rules require an appraisal before a person may take a deduction for the donation of property or interests in property other than cash or publicly traded securities.  This appraisal is the responsibility of the donor and must be performed by a qualified appraiser. Also, the donor must attach an Appraisal Summary (IRS Form 8283) to the tax return for gifts of real estate or other non-cash items (excluding publicly traded securities) having a value of more than $5,000.

This discussion of the tax considerations is necessarily general in nature and should not be considered a complete discussion on this topic. Tax matters, as well as all aspects of a donation of real estate, should be discussed with your own independent advisor.