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, 2023, the organization held easements on sixteen properties for a total of 6,293.91 acres, and the organization does not report a value associated with the easement rights.”

“The Organization records land 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 using inputs such as appraisals, taxed assessed value, and other pertinent information gathered at the time of acquisition and is not subsequently adjusted. Land held for conservation represents unrestricted land acquired for the purpose of continuing the Organization's mission, including trade lands. Land restricted for conservation represents land acquired with donor restrictions. All land represents 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 net assets with donor restrictions. In March 2023, the Organization donated a land with an appraised value of $11,600,000 to the City of Delray. In November 2023, the Organization acquired a land held for conservation for $56,925. At December 31, 2023 and 2022, the Organization held four properties which total approximately 615.3 and 556.5 acres, respectively. Of this amount, 476 acres with a recorded value of $9,000,000 is currently considered restricted for use and is included in net assets with donor restrictions.”

“The Organization is a nonprofit organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code ("IRC"). Accordingly, no provision for income taxes is reflected in the accompanying financial statements. GAAP prescribes requirements for the recognition of income taxes in financial statements, and the amounts recognized are affected by income tax positions taken by the Organization. The Organization's position that it is tax exempt under Section 501(c)(3) of the IRC and the position that none of its income is unrelated business taxable income are defined as tax positions under these requirements. While management believes it has complied with the IRC, the sustainability of some income tax positions taken by the Organization may be uncertain. There are minimum thresholds of likelihood that uncertain tax positions are required to meet before being recognized in the financial statements. In the event interest and penalties were incurred relating to an unsustainable tax position, they would be treated as a component of income tax expense. Management does not believe that the Organization has any material uncertain tax positions at December 31, 2023 and 2022.”