Hackensack Riverkeeper Inc.

“As a result of land remediation lawsuit settlements, the organization has been granted conservation easements. Conservation easements are perpetual agreements between the organization and private landowners through whom the landowners agree to abide by certain restrictions designed not to preserve the open space or conservation value of their land; these agreements are binding on all future landowners. The organization holds two conservation easements. Upon accepting a conservation easement, the organization assumes a perpetual obligation to monitor the affected property to ensure that the landowners comply with the restrictions in the easement. Further, the organization is perpetually obligated to enforce the provisions of the easements in the event of a violation to the terms of the easement. Enforcing an easement violation could involve costly legal or other expenses. Although conservation easements are real property rights, they possess little or no market value due to a real market that is essentially limited to the owner of the fee title of the restricted property. Because of this limited market and due to the obligations inherent in easement ownership, the organizations easement holdings are not reflected on the organizations financial statements either as assets or liabilities.”

“The organization is a tax-exempt organization as defined by section 501(c)(3) of the internal revenue code, though it is subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the code. The organization has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which it has nexus; and to identify and evaluate other matters that may be considered tax positions. The organization has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements.”