Heritage Preservation Trust Inc

Part II, Line 9: Organization Reporting of conservation easements.

“Conservation Easements:The Trust accomplishes its land conservation objective, in part, by accepting donations of interests in real property primarily in the form of conservation easements. Conservation easements are perpetual agreements between the Trust and the private landowners through whom the landowners agree to abide by certain restrictions designed to preserve open space or conservation value of their land. These agreements are binding upon all landowners. Each donation received is unique to a specific entity and therefore arise from different sources. The Trust accepted 11 conservation easements during the year ended December 31, 2022, bringing the total number of easements to 122. Cash contributions relate to donations received as part of the Trust's stewardship of certain properties and is recorded in the period received. These donations facilitate the perpetual responsibilities of monitoring and management associated with conservation/fee simple donations. The Trust does not attribute value to the easements held. Easements are not marketable interests in real estate and have no segregable economic value to the Trust; therefore, conservation easements are not reflected as assets or liabilities in the consolidated financial statements. Upon receipt of the easement, the landowner contributes a one-time unrestricted cash donation to the Trust that is recorded as contribution income in the period received. The acquisition costs and other costs associated with conservation easements are expensed in the period incurred. Easements accepted by the Trust impose a perpetual obligation to monitor and steward the properties, the costs of which are an ongoing expense to the Trust.Land Held for Conservation:The Trust records land at fair value at the date of donation when received as a gift. Fair market value of donated property is determined using the tax assessed fair value at the time of donation when it is available. The Trust also receives donations of conservations easements relating to certain land held for conservation. The value of land held for conservation with conservation easements held totaled $3,577,049 and $3,577,049 as of December 31, 2022 and 2021, respectively. Land donations are considered fee simple and are free of restrictions for their use or disposition.”