New Mexico Land Conservancy

“Income taxes nmlc is a nonprofit organization that is exempt from taxes under section 501(c)(3) of the internal revenue code. Nmlc does not have unrelated business income and accordingly no provisions for income taxes have been made in the accompanying financial statements. Nmlc files an annual information return (form 990) with the internal revenue service. There are no uncertain tax positions for the years ended june 30, 2015 and 2014.”

“Special event expenses netted against income 13,910.”

“Accrual to cash adjustment 463,142. Rounding 2.”

“Special event expenses netted against income 13,910.”

“Accrual to cash adjustment 224,595.”

“Conservation easements property interests nmlc has acquired and holds a number of conservation easements, each representing a legal interest in land owned by another person or entity, and representing nmlc's right to monitor and protect the land for conservation purposes. Nmlc evaluates each easement for its conservation values and then ensures that the terms of the easement will adequately protect and preserve these values. Due to the lack of foreseeable future cash flow benefits from the easements and the absence of a secondary easement market, the accompanying financial statements do not include any recorded amounts for these property interests. This accounting policy is consistent with the practices followed by many environmental land trusts. During the year ended june 30, 2015, nmlc expensed $1,356 for one easement. During the year ended ended june 30, 2014, nmlc expensed $374,750 for two easements. During the years ended june 30, 2015 and 2014, nmlc recorded $10,000 and $350,000, respectively, in grant revenue for easement purchases. Nmlc completed five conservation easements in fiscal year 2015 . . . . The combined value of the non-cash, conservation easement contributions donated to nmlc for the year ended june 30, 2015 was $3,148,246, as compared to $2,518,200 for the year ended june 30, 2014. However, the organization does not report the appraised value of these non-cash conservation easement donations as revenue as this would result in an overstatement of the organization's actual financial assets. While the easement donations represent value to the grantors based upon the appraised value of the development rights they are foregoing through the conservation easements (which forms the basis of their charitable tax deductions), the easements have no real financial or marketable value once they are donated to the land trust.”