The Scenic Hudson Land Trust Inc

“The following easements were modified, transferred or terminated as of June 30, 2021: Modified: Hudson River Maritime Museum - Easement modified to create third-party right of enforcement for public access for the City of Kingston. Transferred: None. Terminated: None. Modified, transferred or terminated as of June 30, 2022: Modified: Fraleigh Easement - The amendment applies only to a portion of the Fraleigh conservation easement in Red Hook (due to a subdivision, the amendment only applies to a portion of the encumbered property). The amendment was signed July 30, 2021. The CE was amended in response to Section 8.4.B.which calls for the periodic review of the location and configuration of the Farmstead Complex. Negotiations with landowners began in 2018. Transferred: Finnegan Easement - The Finnegan easement in Philipstown - was transferred to the Open Space Institute Land Trust, Inc on August 11, 2021. The easement had previously been coheld between SHLT and OSILT, but it was decided that to simplify things, OSI would take full responsibility and we would transfer our interest in the CE to them. Terminated: None. Modified, transferred or terminated as of June 30, 2023: Modified: Kelder - (Town of Rochester, County of Ulster, approximately 95 acres) The amendment replaces the right of first refusal with a covenant to farm and preemptive purchase right to ensure that the property remains in agricultural use and affordable for future farm operations. The conservation easement and amendment were acquired for independently appraised market value and no deduction was taken on either transaction. Transferred: None. Terminated: None. The following easements were modified, transferred or terminated as of June 30, 2024: Modified: Bontecou - The Bontecou and Zacek (West) conservation easements were amended to pursuant to Internal Revenue Service Notice 2023-30 to add "safe harbor" deed language for extinguishment and boundary line adjustment clauses. Modified: Zacek (West) - The Bontecou and Zacek (West) conservation easements were amended to pursuant to Internal Revenue Service Notice 2023-30 to add "safe harbor" deed language for extinguishment and boundary line adjustment clauses. Modified: Grace - The Grace conservation easement amendment added a Preemptive Purchase Right and Covenant to Farm to the terms of the conservation easement.”

“POLICY ON ENFORCEMENT OF CONSERVATION EASEMENTS: The organization(s) policies on Conservation Easement Monitoring and Violations conform to Land Trust Alliance Standards and Practices. The policies require that each conservation easement is monitored annually by a physical inspection of the property. If any violation of the conservation easement has occurred, the landowner is notified by certified letter of the violation. When appropriate, the letter outlines corrective measures that will mitigate the problems. Legal action, authorized by the board, may be taken in the event that a landowner disregards the terms of the easement and/or refuses to take corrective measures.”

“REPORTING OF CONSERVATION EASEMENTS ON REVENUE/EXPENSE STATEMENT: Purchased easements are expensed in the period acquired. Contributions for the purpose of purchasing conservation easements are temporarily restricted at year-end if the purchase of the conservation easement has not been completed. Donated conservation easements are not recorded as revenue or expense by the Organization, except those conservation easements donated (in full or in part) by third parties to satisfy the requirements of governmental funding programs. The Organization recognizes that it is the responsibility of the donor to report the appraised value of a donated conservation easement to the Internal Revenue Service; the Organization does not participate in the appraisal or reporting of these values.”

“USE OF ENDOWMENT FUNDS: As articulated in detail in Part VII of Schedule R, Scenic Hudson, Inc. (SH) and The Scenic Hudson Land Trust, Inc. (SHLT) are related, tax-exempt organizations. Neither organization holds a "permanent endowment," that is, a fund intended by the donor to preserve its original principal amount and thus where spending is restricted to income and other investment earnings. SH and SHLT do hold five "quasi-endowment" funds, which had a combined market value of $233,374,142 as of June 30, 2024, as follows: The Lila Acheson and Dewitt Wallace Hudson Valley Land Preservation Endowment (the "Wallace Fund") is a donor-restricted fund held by SHLT. It is principally used to support capital and other costs of purchasing land and conservation easements to meet SHLT's land preservation goals. Spending from the Wallace Fund is by application of the same spending rate determined by the Board and applied to SH's Board Designated Fund. Special appropriations are permitted under exceptional circumstances by Board approval, subject to donor restrictions. As of June 30, 2024, the balance of the Wallace Fund was $192,647,339. The capital costs of preserving the highest priority conservation lands in the Hudson Valley far exceed the appropriations available from the Wallace Fund. Accordingly, Scenic Hudson's land preservation program - which is run primarily through The Scenic Hudson Land Trust - is highly dependent on capital contributions from individuals, foundations and government entities. The Conservation Easement Enforcement Fund (the "Easement Enforcement Fund") is a board-designated fund held by SHLT. Appropriations are made at the discretion of the Board, generally by application of the same spending rate determined by the Board and applied to SH's Board Designated Fund. Spending is used primarily to cover legal and other costs incurred to support the perpetual obligation to monitor and enforce conservation easements and to defend lands held in fee for conservation. As of June 30, 2024, the balance of the Easement Enforcement Fund was $993,585. The combined value of the Wallace Fund and Easement Enforcement Fund ($193,640,924) is reported in Schedule D, Part V of The Scenic Hudson Land Trust 990. The Scenic Hudson Board Designated Fund is held by SH for the purpose of supporting the annual operating budget. Spending from the Board Designated Fund is determined annually by the board based on a percentage of the average balance over a rolling twelve-quarter period. As of June 30, 2024, the balance of the Board Designated Fund was $34,522,526. The Kathryn W. Davis Fund for Park Planning and Community Land Use (the "Kathyrn W. Davis Fund") is a donor-restricted fund held by SH. This fund is used to support SH's staff, consultants and other costs for park design, park management and land use planning. Spending from the Kathryn W. Davis Fund is by application of the same spending rate determined by the Board and applied to SH's Board Designated Fund. As of June 30, 2024, the balance of the Kathryn W. Davis Fund was $5,210,692. The combined value of the Board Designated Fund and Kathryn W. Davis Fund ($39,733,218) is excluded from this 990 and reported in Schedule D, Part V of the SH's 990. Because of the small size of the Board Designated Fund relative to SH's operations, and the restricted purposes of the Wallace Fund, Kathryn W. Davis Fund and Easement Enforcement Fund, Scenic Hudson is highly dependent on donor contributions to meet its annual operating needs. Hudson Highlands Fjord Trail, Inc. (HHFT) has established and holds a board-designated "quasi-endowment" fund (i.e., an endowment fund where spending is not limited to future income and investment earnings) exclusively dedicated to supporting future operating and maintenance costs of the Hudson Highlands Fjord Trail (the "Operating and Maintenance Fund"). The Operating and Maintenance Fund had a value of $3,367,949 as of June 30, 2024. HHFT has received donor-res”

“DISCLOSURE OF UNCERTAIN TAX POSITIONS: The Organization believes it had no uncertain tax positions as of June 30, 2024 and 2023 in accordance with ASC 740, "Income Taxes," which provides standards for establishing and classifying any tax provisions for uncertain tax positions.”

“Revenue from Related Organizations 25,965,451. Intercompany Eliminations -7,328,965.”

“Expenses from Related Organizations 20,707,052. Intercompany Eliminations -3,062,140.”

“CLARIFICATION ON HISTORIC STRUCTURES: The purpose of acquiring conservation easements is preservation of vital lands in support of The Scenic Hudson Land Trust's mission; preservation of historic structures is incidental to The Scenic Hudson Land Trust's decision to acquire conservation easements.”