Atlantic Coast Conservancy Inc.

“The draft of the form 990 is distributed to all board members for review and comments before being filed.”

“Per conservancy's by-laws, a conflict of interest exists when a board member has a material interest in a transaction or project under consideration by the board of directors or when that person proposes to act on any issue, matter, or transaction in which the conservancy has an interest and in which the interested person may have an interest separate from that of the conservancy. A conflict of interest may also exist in situations in which there is the appearance that an interested person in utilizing for his or her own benefit inside information that is proprietary to the conservancy is acting in his or her own interest rather than the best interests of the conservancy because of his or her status as an interested person or major donor. Specific procedures for addresing conflicts of interest are outlined in conservancy's by-laws.”

“Comparison to similar positions in other land conservation organizations for both officers and paid staff used to determine a fair market compensation.”

“Governing documents, the conflict of interest policy, and financial statements are available to the public upon request. Additionally, form 990 and related schedules are available to the general public upon request.”

“Line 2c - revenues are related to stewardship activities involving properties owned by acc.”

“The mission of the atlantic coast conservancy is to provide 21st century solutions and sound scientific applications for conservation of critical natural resources in the face of a changing climate, focusing on the southeasthern united states with specific utilization of geographic information systems applications in land conservation, ecosystems services, carbon sequestration and conservancy biology.”

“Line 10a - in 2018, land held for preservation was reclassified from land, buildings, and equipment to other assets.”

“Line 8 - prior to 2018, the conservancy's accounting policy regarding land donations was to record all land donations based solely on the donor's appraised fair value, which it had reason to believe was the appropriate accounting treatment. In 2018, management determined this policy was not in accordance with gaap regarding fair value measurement by a reporting entity as stipulated in asc 820 and related pronouncements. Under gaap, a non- profit organization receiving non-cash donations, such as land, is required to objectively determine the donation's fair value measurement for its financial recording purposes utilizing various valuation inputs which are relevant to the organization, not the donor. These inputs include considerations such as the donee's highest and best use ("hbu") of the donated property and its estimated salable value in the donee's primary or most advantageous markets. As permitted under us tax law, a donor's value of land donated to a qualified conservation organization may be determined based upon a feasible, yet hypothetical, hbu which commonly considers the property's commercial development potential, an hbu which is contrary to a conservation organization's mission. Thus, the difference in fair value measurement permitted under tax law for the donor and gaap for the donee may result in materially different fair values. In 2018, the conservancy performed a retrospective review of all previous land donation valuations utilizing measurement inputs it believed comply with gaap requirements. This review resulted in a 464 million prior period adjustment to reduce the recorded value of land held for preservation in its 2018 audited balance sheet.”