Western Pennsylvania Conservancy

“An easement was modified because former owners built a small studio/cottage on 0.05 acre outside the building limit (discovered in 2013). After being notified of the violation, the owners sold the property. Eventually, the new owner agreed to extinguish 0.10 acre of remaining building rights in exchange for modifying the builidng limit to include the studio/cottage. The agreement was signed in 2015 and was recorded in 2016. A 2014 easement was modified to increase the minimum protection area to permit development needs of the holder and to increase the high protection area. The revision increased the overall protection of the easement by increasing the most restrictive high protection area acreage (7.9 acres) more than the increase of the minimum protection area acreage (6.7 acres). A 2015 amendment reduced the overall size of 'building envelope a' by approximately 0.7 acres (from approximately 11.07 acres to approximately 10.44 acres); revised the shape of 'building envelope a' to reflect the reduced size; extinguished the 1.5-acre building envelope and subdivision right currently permitted in the easement on "parcel b" of the property; and updated the language in the easement to allow home office-based businesses to be conducted if neither the business nor the uses such as parking or signage are visible or discernable outside the structures. A 2015 amendment expanded an existing conservation easement, which was donated over a 195-acre property in 2009, to cover 146 additional acres adjacent to the original property. The owners purchased this additional acreage in 2014. The amendment expandeded the existing easement protections over the new property, provided specific restrictions over the new land, and also clarified a term in the original easement. An approximate 2.94-acre portion of a 1,271-acre conservation easement was removed from the easement after the land was condemned for the purpose of constructing a sewage treatment plant. In exchange, a nearby 3-acre property was added to the same easement. In 2011, a local water authority (authority) condemned 2.304 acres of a 2,528-acre conservation easement held by the conservancy on property owned by a business (business) in upper yoder township, cambria county, for a water line. The authority also condemned the fee simple interest owned by the business in that same 2.304 acre property. In 2015, as compensation to the conservancy for the taking the 2.304 acres of the conservation easement for the water line, the authority placed under conservation easement a portion of their land along the boundary of the business's property. The portion of the authority's property placed under easement is 51.25' wide and 3,908.95 feet long, encompassing 4.599 acres. The terms of the new easement are the same as those on the business property, with an additional restriction prohibiting subdivision of the eased portion of the property from the larger parcel owned by the authority.”

“The conservancy acquires, protects, and holds land for conservation purposes. Land is valued at cost or, in the case of donated land, at fair value on the date of the contribution. The conservancy capitalizes certain costs incurred during the time the land is being acquired and protection activities are underway. The costs include development, land improvements, legal fees, and miscellaneous other items. Grants received as reimbursement for land costs on projects where the conservancy does not intend to hold the land for long-term purposes reduce the cost of the land. The conservancy holds certain conservation easements and deed restrictions (easements). The conservancy obtains easements by the sale of a piece of land owned by the conservancy, where part of the agreement is that the conservancy retains the conservation easement on the land. The conservancy also obtains easements from third parties by donation, or by reservation of rights upon sale of land, under which a third party maintains its ownership of the underlying land. Easements acquired through donation and easements established by reservation of rights are not recorded in the financial statements. Additionally, the conservancy obtains easements through purchases directly from owners. Purchased easements are recorded at cost and reduced to a carrying value of $1 by the amount of any restricted grants received specifically for the easement purchases and by expensing the amount of the easement purchase funded by unrestricted revenue. As discussed above, grants received as reimbursement for land costs on land conservation projects where the conservancy does not intend to hold the land for the long-term reduce the cost basis of the land. The conservancy received a grant of $6,735,918 from a private foundation for such a project in 2015. Accordingly, this grant was not reflected as revenue but rather as a reduction of the land cost within the land conservation projects balance sheet account. Accordingly, the grant is not reflected as contribution revenue in form 990, part viii, line 1 and therefore, is not included as support for the schedule a, part ii or on schedule b.”

“Fallingwater was designed in 1935 by frank lloyd wright as a weekend house for the edgar j. Kaufmann family of pittsburgh. Constructed between 1936 and 1939, it combined innovative engineering and design with modern materials in a way that helped instill modernism as a powerful movement in america. Dramatically cantilevered over the waterfall of bear run, the house was constructed of reinforced concrete and native sandstone quarried on the site. It is comprised of a series of reinforced concrete trays stacked one upon the other and separated by stone piers. The first floor consists of the living, dining and kitchen areas; the second and third levels have a total of four bedrooms each with a bath and terrace. Climbing the hill behind the house is the guest house and servants quarters. Fallingwater's art collection is comprised of more than 950 works of fine and decorative art including prints, paintings, sculpture, furniture, ceramics, art glass, and miscellaneous household objects. Of particular significance in the collection are the 169 pieces of original walnut furniture, custom designed by frank lloyd wright for fallingwater. These pieces represent one of the most complete ensembles of wright designed, site-specific furniture. The remaining artifacts on display represent an eclectic range of objects collected by the kaufmann family. They underline the family's belief in the power of good design to enrich the quality of modern life, a belief shared by frank lloyd wright. In addition to works of art, there are 1,340 family books, including an important collection of architectural books. The fallingwater archives contain: 396 photographs (1880-1996) of the bear run region, fallingwater and surrounding property, construction of the house, and members of the edgar j. Kaufmann family; 875 photographs of western pa by regional photographer luke swank; 1,100 documents (1934-1989) relating to the kaufmann family's ownership and association with fallingwater; 16 maps of the surrounding area, 3 original pencil drawings by victor hammer; 150 copies of drawings produced by wright for the kaufmanns (the originals were placed at columbia university's avery library by edgar kaufmann, jr. Prior to his gift of fallingwater to the wpc); 108 publications related to the house and family; 60 minutes of black and white film footage that includes home movies of the family, the bear run property prior to the construction of fallingwater, and films of the construction itself; 5 video tapes and 25 oral history interviews of former kaufmann employees and friends, and approximately 1,000 pieces of original kaufmann correspondence. A national historic landmark since 1976, fallingwater is an international treasure. In 2000, the state of pennsylvania named fallingwater a commonwealth treasure, and a survey of the american institute of architects' members voted fallingwater the building of the century, by a 3-to-1 margin. In 2015, fallingwater was put forth by the national park service for consideration as a unesco world heritage site with nine other wright buildings. It is the only major wright-designed building to have come into the public domain intact, complete with the building, landscape, original wright-designed furnishings, and family's art collection. Fallingwater and its collections are an invaluable public resource. With close to 167,000 visitors annually, the museum serves as an educational and cultural institution for the global community.”

“The conservancy's endowment consists of various investment funds established primarily for the financial needs of the organization and its purpose. The endowment includes only donor-restricted endowment funds and accumulated income thereon. Certain endowment earnings are donor restricted for a particular program. In accordance with state law, on an annual basis, the board, in writing, elects a spending rate of between 2% and 7%.”

“The conservancy has been granted an exemption from federal income taxes under section 501(c)(3) of the internal revenue code. The internal revenue service (irs) has classified the conservancy as other than a private foundation. The conservancy is subject to income tax on certain income that is considered unrelated business income, if earned. The conservancy annually files a form 990. The conservancy has assessed the tax positions it has taken or expects to take in its tax returns and no liability has been determined to be necessary.”

“Adjustment in charitable gift annuities -1,731. Rental expenses 127,840. Cost of goods sold 954,122.”

“Rental expenses 127,840. Cost of goods sold 954,122.”