The Nebraska Land Trust Inc

“The following is the footnote in the financial statements regarding the organization's accounting policy as it relates to conservation easements: conservation easements are permanent, binding agreements between a landowner (and future landowners) and nlt, which are attached to the title of real property specified in the conservation easement agreement. Conservation easements give nlt no claim of ownership or future claim of ownership in the real property to which they are attached. Rather, the conservation easements give rise to a contingent liability in the event that nlt would either have to defend the easement from legal challenge, or use legal means to enforce provisions of the easement (see note below for further discussion regarding contingent liabilities). As such, management has reviewed guidance in financial accounting standards board (fasb) accounting standards codification (asc) topic 350 intangibles - goodwill and other and has determined that conservation easements held by nlt do not meet the requirements to be recognized as assets. Accordingly, management recognizes all costs associated with acquiring an easement as an expense in the statements of activities in the period in which the easement is acquired. Management records $1 of value associated with each easement, and uses this as a means to show users of the financial statements the number of easements held by nlt. The following is the footnote in the financial statements regarding contingencies associated with conservation easements: as of december 31, 2014, nlt holds 28 conservation easements covering approximately 11,085 acres in various locations throughout nebraska. Nlt performs annual monitoring of the property associated with the conservation easements to ensure that terms and conditions of the easements are not violated. In the event that a violation of the easement occurs, nlt will bring any and all action necessary to remedy the violation, including litigation. As of december 31, 2014, there are no known easement violations which have not been remedied.”

“Nebraska land trust (nlt) is a not-for-profit corporation as described in section 501(c)(3) of the internal revenue code, and has received a determination letter stating that nlt is exempt from federal income taxes on related income pursuant to section 501(a) of the internal revenue code. The internal revenue service has established standards to be met to maintain nlt's tax exempt status. Nlt accounts for uncertainties in accounting for income tax assets and liabilities using guidance included in fasb asc topic 740, income taxes. Nlt recognized the effect of income tax positions only if those positions are more likely than not of being sustained. At december 31, 2014 and 2013, nlt have no uncertain tax positions accrued. Nlt is no longer subject to income tax examinations for years ended prior to december 31, 2011.”