When you own land, you also "own" many rights associated with it, such as the rights to build structures, grow crops and so on.   When you donate or sell a conservation easement to OVLC, you permanently give up some of those rights. For example, you might give up the right to build additional residences, while retaining the right to grow crops. In some cases a conservation easement may apply to just a portion of your property, leaving the option of development open for the remaining part. It may allow limited building within the area under the easement.

The conservation easement is written up in a legal agreement that is tailored to protect your land's conservation or agricultural values and meet your financial and personal needs. An easement on property containing rare wildlife habitat might prohibit most development, for example, while one on a farm or ranch might allow continued farming and the building of additional agricultural structures. Future landowners also will be bound by the easement's terms.

The OVLC takes on the responsibility, expense and legal right to enforce the easement.  If a future owner or someone else violates the easement - perhaps by erecting a building to the easement doesn't allow - the OVLC will work to have the violation corrected.  The OVLC usually asks for a donation from the easement donor to help offset the costs of future stewardship expenses and ensure the protection of the conservation and agricultural values in perpetuity.

Qualifying for a Federal and State Income Tax Reduction

If you donate a conservation easement that meets federal and California tax code requirements, the value of the easement can be treated as a charitable gift and deducted from income tax (to the extent your particular tax situation allows.) For income tax purposes, the value of the easement is the difference between the land's value with the easement and its worth without the easement. If a property is worth $500,000 unrestricted, for example, and an easement precludes further development is placed on it that drops its value to $200,000, the value of the donation is $300,000. Easement values can vary greatly; in general, the highest easement values result from very restrictive conservation easements on tracts of developable open space. In order to qualify as a charitable donation, an easement must meet federal and California tax code requirements -- in essence, must provide public benefit by permanently protecting important conservation resources. However, an easement does not have to cover all of the property to preclude all use or development, or allow public access to qualify. Because a conservation easement lowers the property's fair market value, it could also result in lower property taxes.

Financial Compensation For Conservation Easements

In certain situations, OVLC will pay you for part or all of the easement�s value. We can work with you to secure grants or other funding for the protection of your land, which is only available through land conservancies. OVLC has a special interest in properties along the Ventura River, San Antonio Creek, parcels containing oak woodlands and working ranches, but other exceptional properties may qualify for funding.

Donating a Conservation Easement by Will

A conservation easement can also be donated by will. It has the same effect on estate taxes as a lifetime donation. You should be sure to negotiate the easement with the OVLC before including it in your will; this assures that we are willing and able to receive it and that the easement achieves your goals.

To find out more about how you can establish a conservation easement on your land, please call 805.649.OVLC (6852) or email: ovlc@ovlc.org