1. The Legacy Property Fund Growing 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