Southeast Regional Land Conservancy Inc.

“Conservation easements held by the organization represent intangible property rights granted by a landowner. Under the terms of the easement agreement, the occurrence of specific conditions upon which these intangible rights may directly or indirectly benefit the future cash flows of the organization are determined by management to be both remote and unmeasurable. Thus, in accordance with us gaap, conservation easement transactions represent neither donated intangible assets nor non-cash contribution revenue to the organization, and thus are not recorded. While the granting of a qualified conservation easement may result in income tax benefits to the landowner as a charitable contribution, such tax benefits to the grantor, if any, are irrelevant to the determination of the appropriate accounting treatment to be applied by the organization in the preparation of its financial statements.”

“The organization accounts for the value of land donations it receives using the guidance in accounting standards codification 958 -not-for-profit entities" (asc 958). In accordance with asc 958, the organization has elected a policy not to recognize and capitalize additions to its collections of preserved land. For the period in which the donation is received, the organization determines if the donated land possesses sufficient public benfit conservation purposes and thus should be added to its collection based on a qualified field study of the property's natural features and other relevant factors. As a result of this study, should the organization determine a land donation lacks sufficient conservation purposes to include in its collection, the fair value of the land, normally based on an independent appraisal, is capitalized and recognized as non- cash contribution revenue.”

“The organization's collection comprises of open land determined by a qualified environmental expert to possess both a high degree of conservation purpose for public benefit and threatened by development destruction, thus necesstating permanent protection.”