Instructions For Schedule D (Form 990) - Supplemental Financial Statements

easements. If “Yes,” briefly summarize

In addition to reporting on

the tax year. For example, if two

conservation easements, also report

easements were modified and one

such policy or policies in Part XIV. Also,

in Part II other interests in real property

easement was terminated during the

indicate whether such policy or policies

that under state law have attributes

tax year, enter the number 3.

are reflected in the organization’s

similar to a conservation easement and

easement documents. Monitoring

For each easement modified,

are established for the purpose of

means the organization investigates the

transferred, released, extinguished, or

conservation and preservation (for

use or condition of the real property

terminated, in whole or in part, explain

example, certain restrictive covenants

restricted by the easement to determine

the changes in Part XIV. Tax exemption

and equitable servitudes). Do not report

if the property owner is adhering to the

may be undermined by the

utility easements.

restrictions imposed by the terms of the

modification, transfer, release,

easement to ensure the conservation

Line 1. Check the box for the purpose

extinguishment, or termination of an

purpose of the easement is being

or purposes for which the organization

easement.

achieved. Inspection means an onsite

held the easement(s) during the tax

For purposes of this Schedule D

visit to observe the property to carry out

year. Check all that apply.

reporting requirement, an easement is

a monitoring purpose. Enforcement of

Line 2. Provide an answer for each

modified when its terms are amended

an easement means action taken by

item.

or altered in any manner. For example,

the organization after it discovers a

if the deed of easement is amended to

Line 2a. Enter the total number of

violation to compel a property owner to

increase the amount of land subject to

conservation easements held by the

adhere to the terms of the conservation

the easement or to add, alter, or

organization at the end of the tax year.

easement. Such activities can include

remove restrictions regarding the use of

This should not be an estimate or a

communications with the property

the property subject to the easement,

rounded number.

owner explaining his or her obligations

the easement is modified. An easement

with respect to the easement,

Line 2b. Enter the total acreage

is transferred if, for example, the

restricted by conservation easements

arbitration, or litigation.

organization assigns, sells, releases,

held by the organization at the end of

Line 6. Enter the total number of

quitclaims, or otherwise disposes of the

the tax year. Compute the total

hours devoted during the tax year to

easement whether with or without

acreage by adding together all the

monitoring, inspecting, and enforcing

consideration. An easement is

acres of land subject to all the

conservation easements, as those

released, extinguished, or terminated

easements held as of the end of the tax

terms are defined in the instruction for

when it is condemned, extinguished by

year. Do not include conservation

line 5, above. Include the hours

court order, transferred to the land

easements on certified historic

devoted to this purpose by any of the

owner, or in any way rendered void and

structures. Acreage can be expressed

organization’s paid or unpaid staff and

unenforceable, in each case whether in

in decimal points for properties subject

by any of the organization’s agents or

whole or in part. An easement is

to easements where the acreage

independent contractors.

alsoreleased, extinguished, or

consists of less than whole numbers.

Line 7. Enter the total amount of

terminated when all or part of the

For example, two and one-half acres

expenses incurred by the organization

property subject to the easement is

can be expressed as 2.5 acres.

during the tax year to monitor, inspect,

removed from the protection of the

Line 2c. Enter the number of

and enforce the conservation

easement in exchange for the

conservation easements on certified

easements it held during the year as

protection of some other property or

historic structures held by the

those terms are defined in the

cash to be used to protect some other

organization at the end of the tax year.

instruction for line 5.

property.

A certified historic structure is any

Line 8. Answer “Yes” if each of the

The categories described in the

building or structure listed in the

organization’s fa¸ c ade easements

preceding paragraph are provided for

National Register of Historic Places as

acquired after August 17, 2006,

convenience purposes only and are not

well as any building certified as being of

satisfies the requirements of sections

to be considered legally binding or

historic significance to a registered

170(h)(4)(B)(i) and 170(h)(4)(B)(ii).

mutually exclusive. For example, a

historic district. See section

modification may also involve a transfer

Section 170(h)(4)(B)(i) requires each

170(h)(4)(B) for special rules that apply

and an extinguishment, depending on

fa¸ c ade easement donated after August

to contributions made after August 17,

the circumstances. Use of a synonym

17, 2006, to include a restriction that

2006.

for any of these terms does not avoid

preserves the entire exterior of the

Line 2d. Enter the number of

the application of the reporting

building, including the front, sides, rear,

conservation easements included in

requirement. For example, calling an

and height of the building, and to

the answer to line 2c that the

action a “swap” or a “boundary line

prohibit any change in the exterior of

organization acquired after August 17,

adjustment” does not mean the action

the building that is inconsistent with the

2006.

is not also a modification, transfer, or

historical character of such exterior.

extinguishment.

Line 3. To be eligible for a federal

Section 170(h)(4)(B)(ii) requires the

charitable income tax deduction for the

Line 4. Enter the total number of

donor and donee to enter into a written

donation of a conservation easement to

states where property is located and

agreement certifying, among other

a qualified organization, the easement

subject to a conservation easement

things, that the donee organization has

must be granted in perpetuity. For

held by the organization during the tax

the resources to manage and enforce

purposes of maintaining its tax

year.

the restriction and a commitment to do

exemption, the recipient tax exempt

so.

Line 5. A qualified organization must

organization must protect the perpetuity

have a commitment to protect the

Line 9. Enter on Part XIV a description

requirement of the conservation

conservation purposes of the

of how the organization reports

easements it holds.

conservation easements in its

easement, and have the resources to

Enter the total number of

enforce the restrictions. Report whether

revenue and expense statement and on

conservation easements held by the

the organization has a written policy or

its balance sheet. Include in Part XIV, if

organization that were modified,

policies about how the organization will

applicable, the text of the footnote to

the organization’s financial

transferred, released, extinguished, or

monitor, inspect, and handle violations,

terminated, in whole or in part, during

and how it will enforce conservation

statements that describes the

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Instructions For Schedule D (Form 990) - Supplemental Financial Statements - 2011 Page 3

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