Bur Oak Land Trust

“The bur oak land trust uses a range of tools to help conserve important natural resources in iowa. The trust recognizes the importance of using conservation easements, but also recognizes the perpetual responsibilties of being a conservation easement grantee. The trust has specific policies and takes specific actions as necessary to monitor and enforce the provisions of conservation easements held by the trust. Separate board- designated accounts were also established to provide for a property stewardship position, property management, and conservation easement legal defense and stewardship. The trust established a policy that requires that funds be set aside as part of the acquisition of each conservation easement. It is the policy of the trust that these funds be invested as a part of its project funding policy. These funds will be invested to prevent loss of principal when possible. As a part of the annual budget process, a portion of the earnings will be included in revenues every year to cover the costs of baseline documentation, annual monitoring, and technical assistance to the landowners. The trust has further established board-designated conservation easement legal defense account. This account is to be used for legal defense, arbitration or litigation costs associated with enforcing the provisions of any conservation easement held by the trust. It is the policy of the trust that these funds be invested as a board-designated account. These funds will be invested to prevent loss of principal. Any investment income attributed to the conservation easement legal defense account shall remain in the account. The principal and any investment income of the account may be used for legal defense. Any legal actions taken by the trust, or use of the funds in the conservation easement legal defense account, require approval of the board.”

“The organization does not record conservation easements on its financial statements, as they are prepared on the modified cash basis of accounting.”

“The trust's endowment consists of a fund established to generate income designed to pay premiums for terrafirma, a national non-profit insurance pool that would provide additional conservation easement defense and fee- owned property defense support. Its endowment consists of donor-restricted and board-designated endowment funds.”

“The trust, a not-for-profit trust, is exempt from income taxes under section 501(c)(3) of the internal revenue code, except to the extent of taxes on unrelated business income. The trust follows the accounting for uncertainty in income tax requirements of the income tax topic of the fasb accounting standards codification. Management has evaluated their material tax positions and determined no income tax effects with resepect to the financial statements. The trust's federal income tax returns are open by statute and are subject to examination by the tax authorities. The trust has not been notified of any impending examinations by the tax authorities, and no examinations are in progress.”