Initial contacts between potential donors and The Habitat Trust often result from conservation activities or referrals from third parties.   Initial meetings and conversations are had with the potential donor to discuss the location and characteristics of the land to be gifted.

Authorization by the Trust's Board of Directors  -  The Board of Directors evaluates the merits of all potential donations.   If the property satisfies the Trust's  Criteria for Conservation Projects, the Board will authorize Trust staff and legal counsel to negotiate terms and conditions related to the donation as well as the performance of any services on behalf of the donor to facilitate the donation.

Coordination of the Donation  -  With the approval and assistance by the donor, the Trust's professional staff coordinates a variety of tasks required to complete the donation of lands / waters to The Habitat Trust.

Baseline Documentation  -  Baseline documentation is an inventory of the current condition of the habitat on and surrounding the parcel(s).   It may include site photographs, a recent aerial photograph, a topographic map, and the identification of the natural resources site.   This information enables the Board to:

1. verify the public benefit of acquiring the land,
2. identify and document the significant features of the habitat area / parcel to be protected and
3. assess its future management needs.

Appraisal  -  The Habitat Trust encourages all donors to obtain an appraisal of the land parcel by a qualified appraiser.   The Internal Revenue Service has regulations that penalize donors and appraisers for the over-valuation of gifts.   Ultimately, the donor must attach a copy of IRS Form 8283 for Non-cash Charitable Contributions to his / her tax return.   In addition to the donor, this form must be signed and dated by the qualified appraiser and the Trust.

Title Report  -  The title report will:

1. verify ownership and
2. identify possible encumbrances on the parcel such as liens and / or covenants and restrictions.

Under certain instances, the Trust will purchase title insurance.   The prospective donor can assist the Trust by providing copies of existing title insurance policies and / or title reports.

Deed and Conveyance  -  The Deed can be prepared by either the donor's advisors or The Habitat Trust.   In any event, it must be reviewed by the Trust before it is accepted.   Once executed and accepted, a deed must be recorded with the County Clerk for that government district.   Together with the signed Deed, the donor should provide the Trust with the fully executed Transfer Gains Tax Affidavit and the State Board of Equalization and Assessment Transfer Report.   The donor's legal counsel and / or tax accountant should be able to obtain these documents.

Charitable Contributions  -  A gift of lands / waters for conservation represents a significant sacrifice for any landholder.   While the donor makes a gift of great significance with potential charitable tax benefits, the Trust assumes a liability given the responsibilities and costs associated with its long-term management of protected land.   Because the IRS has honored the charitable donation of the donor, they require that the Trust fulfill its conservation mission and responsibility to the greatest extent possible.   Donors expect the Trust to fulfill this responsibility as well and therefore, they make an additional charitable gift to underwrite the long-term management of the protected land.   After a careful review of the management implications - size and type of site (wetlands, woodland, etc.), access, etc. – of any proposed gift of land, our Board of Directors will suggest a monetary contribution to The Habitat Trust to support the long-term management responsibilities of the Trust.

Environmental Audit  -  The Board of Directors may require that a potential gift of land be subject to an independent environmental audit that verifies that the property is free of contamination from toxic and / or hazardous substances.   In such cases, the Trust will request that the donor pay for a qualified Environmental Engineer to conduct a Phase I environmental audit.

Property Taxes  -  Property taxes are due on gifted land for up to one year after the property has been conveyed to The Habitat Trust.   The Trust will apply for exemption prior to the State taxable status date;  however, taxes are usually due for the year prior to exemption.   The donor is responsible for payment of these property taxes until formal recognition of tax-exempt status by the local Assessor's Office.