The Legacy Property Fund Growing Conservation Philanthropy Keystone Conservation Trust May, 2010

Funding Conservation using the Legacy Property Fund What: New pipeline of private sector capital Why: Diversify and expand funding New major gifts tool for you Tax-advantaged opportunity for your supporters How: Tap in to a new asset base for conservation philanthropy – real estate transactions

The Unrealized Potential of Gifts from Real Estate Millions of dollars in gifts are achievable

Unlocking the Value in Homes at the Time of Sale At the time a home is sold, there is an opportunity to create a gift Gifts can be created at no expense to the seller, or gifts can be enhanced Reduced income taxes and savings on capital gains taxes produce the gifts Basic transactions yield 3-5% of sales price

Flexibility of the Approach, Some Real Cases Board member / major donor created single large gift from sale of summer home (second home) Charitable couple created gifts to multiple conservation organizations from sale of primary residence Individual created multiple gifts from sale of summer residence

How the Program Works IRS sanctioned bargain sale technique Donation to KCT at appraised value with a promissory note from KCT at reduced value, creating the charitable gift Income tax benefit on gift amount Reduced capital gains tax No charge to organization nor donor KCT retains 2% of sale price when property is sold to a third party Two tracks: Examples Basic transaction (‘no cost’) Philanthropic transaction (donative intent)

Sharing The Donation Donation split among KCT and other charities of the donor’s choice Basic (No cost) Gift: 50-50 split NGO & KCT (KCT retains minimum 2% of sales price) Larger gift: 2% to KCT Balance to your organization and other charities of the donor’s choosing

Working Together Proactively communicate the opportunity Identify potential prospects Test for interest, then, hand it off to KCT KCT handles logistics Your role is critical to the fundraising outcome

Working with Your Supporters and You Run customized scenarios Four inputs: fair market value, basis, mortgage amount and income tax bracket Review by supporter and their advisors Donation agreement Before signing with buyer! Donation, resale, and gifts

Who to talk to Piggyback on your existing development activities Profile of best prospects Transition Downsizing (less need for all cash from transaction) High tax bracket Small or no mortgage on home (equity build up) Higher value properties or properties other than primary residence (second homes)

What’s Next Drawing attention to the opportunity: “Drip” marketing Goal: build awareness, acceptance (and funds!) On-line on KCT and NGO websites Print media – brochure, newsletter, targeted letter to owners of conservation easements Discussions with your Board, staff, donors, realtors, financial advisors, attorneys Follow up with more information, as needed

For additional information Keystone Conservation Trust 336 King of Prussia Road Radnor, PA 19087 John Rogers President 215-837-3778 jrogers@keystoneconservation.org www.keystoneconservation.org