The Legacy Property Fund Growing Conservation Philanthropy

1. The Legacy Property FundGrowing Conservation Philanthropy Keystone Conservation Trust May, 2010

2. 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

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

4. 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

5. 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

6. 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)

7. 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

8. 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

9. 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

10. 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)

11. 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

12. 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