Conservation Florida Inc.

“Conservation Florida is wholly committed to good stewardship, which necessarily includes effective and quick resolutions of violations or noncompliance with conservation easement terms. The Organization approaches easement violations and non-compliance by comprehensively analyzing all aspects of the easement and taking into consideration other facts and circumstances.”

“Conservation easements are comprised of listed rights and/or restrictions over a property that are conveyed by a property owner to the organization in perpetuity in order to protect the property. These intangible assets may be transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements, by their very nature, do not generate cash inflow annually. The organization does not report the value associated with the easements. As of december 31, 2021, the organization held easements on seven properties for a total of 1,001 acres, and the organization does not report a value associated with the easement rights.”

“Conservation Florida records lands conserved at cost if purchased or at fair value at the date of acquisition if all or part of the land was received as a donation. Fair value is estimated with reference to appraisals, taxed assessed value and other pertinent information gathered at the time of acquisition and is not subsequently adjusted. Conserved land is real property with significant ecological, recreational, scenic, or historical value. These properties are managed in an effort to protect the natural biological diversity of the property. Donated properties are often subject to certain conditions, covenants, and reversionary clauses that prohibit the sale and restrict the use of the properties. For this reason, these properties are reflected in donor-restricted net assets. At December 31, 2021, the Corporation held four properties for a total of 556.5 acres. Of this amount, 476 acres with a recorded value of $9,000,000 is current considered restricted for use and is included in net assets with donor restrictions.”

“The organization is a nonprofit organization exempt from federal taxes on income other than unrelated business income under section 501(c)(3) of the internal revenue code. The organization experienced no taxes as a result of unrelated business income for the years ended december 31, 2021, and 2020. The organization is not classified as a private foundation by the internal revenue service. Accounting principles generally accepted in the united states of america prescribe requirements for the recognition of income taxes in financial statements, and the amounts recognized are affected by income tax positions taken by the organization in its tax returns. The organization's status as an exempt organization is defined as an income tax position under these requirements. While management believes it has complied with the internal revenue code, the sustainability of some income tax positions taken by the organization in its tax returns may be uncertain. There are minimum thresholds of likelihood that uncertain tax positions are required to meet before being recognized in the financial statements. Management does not believe that the foundation has any material uncertain tax positions at december 31, 2021. In the event interest and penalties were due relating to an unsustainable tax position, they would be treated as a component of income tax expense.”