According to the American Camp Association, 1 in 5 camps have conservation easements in place. What is a conservation easement, you ask? A conservation easement is a way for camps to protect their property from unwanted future development. For many camps, their property was purchased nearly 100 years ago for a fraction of the value of the land today. This can pose a big problem for camps, as current land values can mean large property and estate taxes. Consequently, camp owners face unique challenges arising from the ownership of significant parcels of land.
One solution to this dilemma is a conservation easement. With a conservation easement, the property owner sells the development rights to a land conservancy. Crafted to suit the particular camp’s situation, this creates opportunities for camp owners. Here are several benefits of selling development rights.
Income Tax Savings: A for-profit camp can enjoy significant federal and state income tax savings from donating a conservation easement on portions of the camp property.
Transition and Estate Planning: Camp owners planning for the transition of the camp to their family’s next generation or planning for their estates can reduce the taxes involved in such transitions by incorporating a conservation easement.
Acquisition: conservation easements can be creatively implemented to facilitate the purchase of a camp property.
Disposition: If the sale of a camp for another use is required, planning for a conservation easement, along with a creative development concept can be an effective marketing tool which can help cultivate alumnae as potential buyers for personal or collective use.
Raise Capital: In some instances, federal, state or local money may be available to purchase conservation easements from camp owners.
Camp Protection: A conservation easement will stand to protect the environment in case camp property is ever sold.
Green River Preserve, near our offices in Brevard, NC, has over 2,600 acres in conservation easement standing. For Green River Preserve, their conservation easement greatly reduced their property and estate taxes, and they received cash from the State of North Carolina through its Clean Water Management Trust Fund and other funding sources due of the camp’s ecological value. And, best of all -- campers can continue to be campers, as if nothing has changed, according to Sandy Schenck, the founder of Green River Preserve.
What can a Conservation Easement do for your camp? Learn more from? The Carolina Mountain Land Conservancy here! (there are also similar conservancy groups in each state). Camps should consult with their legal and accounting teams before pursuing any conservation easements.
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