Conservation for Landowners
Are you a landowner with property that includes valuable natural features such as forest, wetland, stream, valley land or rare species? Do you want to ensure that these sensitive ecological features are protected for future generations?
While the natural land in your care is protected today, arranging for long-term conservation is the best way to ensure that your property will remain green for generations. By partnering with a conservation organization to safeguard the natural features on your property, you can create a Green Legacy that will be protected forever. Protecting nature is a rewarding act of philanthropy that can offer significant tax advantages.
Planning Your Green Legacy
The first step is to determine which conservation method and tax benefit is most suitable for you.
Donate all or part of your property for long-term conservation
Donation
You can donate all or part of your property – now, or as a Bequest in your Will – to a conservation organization to be protected forever. Land donations are assessed by an independent, third-party professional appraiser and a tax receipt for the value is issued to you. The recipient organization can provide appropriate recognition for your gift of land through naming, signage or by other means according to your wishes.
Conservation Severance
Donating part of your property is called a Conservation Severance. For example, you could sever and donate the natural area on your property and retain the remainder around your residence so that you can continue to live on and enjoy your land. This method creates a nature reserve around your home that will be professionally stewarded and protected by the recipient organization. You will also no longer have to worry about the liability that comes with owning a large property.
Bequest
You can arrange a future donation of all or part of your property as a bequest in your Will. The recipient organization works with you and your lawyer to draft terminology suitable to grant your final wishes.
Donate all or part of your property for long-term conservation and still continue to use it
Life Estate
You can donate all or part of your property and retain an interest to use it for a specific term or for the remainder of your life. You many want to continue to enjoy your property for activities such as farming, camping or collecting firewood. The value of this retained use is estimated and deducted from the value of your donation.
Donate all or part of your property with a Split-Receipt
Split
If you are unable to use a full tax receipt for your land donation, you can donate part of the fair market value of your property and receive cash for the remainder. A charitable tax receipt is issued for the value of the donated portion of the land.
Retain ownership and arrange long-term conservation for your property
Conservation Easement Agreement (CEA)
A CEA allows you to retain ownership of your property while establishing legal protection for its natural features in perpetuity. It is a legal agreement between you and the recipient organization and registered on property title. Together you decide how to protect the natural features by restricting activities that could be detrimental to the ecological health and biodiversity of your property. CEAs have been used as a legal tool to protect forest ecosystems and rare species by prohibiting activities such as development, logging, habitat destruction, poaching and pollution. The recipient organization will monitor the land annually to ensure compliance with the restrictions. You receive a charitable tax receipt for the fair market value of the property rights that were donated by entering into the agreement.
Ecogifts for Extra Tax Benefits
The land conservation methods described here can also be combined with Environment Canada’s Ecological Gifts Program. Landowners with property deemed ecologically significant by Environment Canada are eligible for certification under the program to receive enhanced income tax savings that can be applied to 100% of income over five years plus the year of donation. Certified Ecogifts are subject to zero capital gains tax, compared to only 50% on non-Ecogift land donations.
Ecological Gifts Program
416 739 5828
pde-egp@ec.gc.ca
www.ec.gc.ca/pde-egp/
Partnering for Conservation
The second step in planning your Green Legacy is to choose a recipient organization to conserve and steward the natural features on your land in perpetuity according to your wishes. Municipalities, conservation authorities and land trusts may be able to partner with you to protect your property.
Talk To Us
If you are not sure what kind of Green Legacy you would like to arrange for your property at this time, we can help. Orland Conservation has experience working with conservation-minded landowners just like you. We can answer any questions you may have and put you in contact with conservation organizations in your area. Remember to discuss your conservation plans with your family, lawyer, accountant or financial advisor before you make this important decision.
By arranging for long-term conservation, you can personally ensure that the natural features on your property will be protected forever. Environmental conservation is a significant gift to nature, the community and future generations. Together we can help you create a Green Legacy.
