FAQ

What is a Land Trust?

What is a Land Trust?
Are land trusts government agencies?
What is a conservation easement?
How do local Land Trusts work?
How does EALT decide which lands to protect?
What will EALT do with the properties it secures?
What will EALT do with donor dollars?
What are my land conservation options?
How can I continue to own my land but oblige future owners to protect its natural heritage features?
I want to donate but don’t know where to start – where can I get help?
What is an Ecological Gift and its tax benefits?
How do I determine the natural value of my property?
How can I make a donation to a Canadian Land Trust if I am an American, and what are the tax implications?
Why is it important to conserve properties in the Edmonton region?
What is the difference between EALT and other organizations?

Land trusts, also known as land conservancies, are non-profit, charitable organisations which, as a core activity, work to conserve land with natural and other heritage values. They do this by working toward the acquisition of land or interest in land (e.g., through conservation agreements or easements), or by engaging in /stewardship/ of such land or conservation easements.

Most land trusts, like the Edmonton & Area Land Trust, are local in scope and operation. But some may be provincial, regional, or even national. Most land trusts focus on conserving the ecological values of land, but some have been established to protect scenic, historical, agricultural, or recreational lands as well.

The hallmark of a land trust is both the direct action they take to protect the local land base, and that they hold those lands or conservation easements in trust for future generations.

Land trusts create public benefit through education programs, community services, and the creation of passive recreational opportunities, thereby improving the quality of life for all citizens.

Land trusts are supported by donations and memberships from generous residents in the community they serve.

Are land trusts government agencies?

No, they are independent, entrepreneurial organizations that work with private landowners who are interested in protecting open space. Land trusts often work cooperatively with government agencies by partnering to acquire or manage land, researching open space needs and priorities, or assisting in the development of community open space plans. Many Canadian land trusts have a small staff and all rely on active volunteers to support their efforts.

What is a conservation easement?

Conservation easements are a tool to allow you to protect your land permanently while still retaining ownership and ongoing use.

This is where a landowner agrees to maintain the conservation, agricultural, built heritage, or other values of the land, while retaining ownership and use of it. The owner receives a tax receipt for the difference between the appraised fair-market value of the land and the newly-assessed value of the land based on the agreed environmental restrictions. The easement is registered on the title of the land. The land may be sold or passed on over generations, but the conservation easement remains forever in place. When a conservation easement is donated, such a donation may qualify as an ecological gift.

How do local Land Trusts work?

As non-profit incorporated charities, land trusts are able to raise funds to purchase lands or conservation easements that protect the properties of ecological significance.

Local land trusts are also able to receive donations of land and easements, and are mandated to protect these sites in perpetuity. Land Trusts abide by a Code or Standards and Practices, such as that of the Canadian Land Trust Alliance (CLTA).

How does EALT decide which lands to protect?

EALT is developing a policy that identifies the important types of natural areas and features to protect, as well as other criteria to decide whether a project is worthwhile. This information is based on input from local people, research and experience.

For properties that landowners themselves bring forward, we gather information to determine whether the site is important, whether we are the right partner to help out, and what approach makes sense to everyone involved.

What will EALT do with the properties it secures?

For lands that EALT acquires, we develop a management plan to guide our future use, based on input from the donors and neighbours. Our main interest is to conserve the important features on the property while also allowing compatible uses.

For conservation easements, the landowner still owns and decides what to do with the property, within the terms of the agreement.

What will EALT do with donor dollars?

EALT runs primarily on volunteer effort, meaning that donor dollars are focused on our main mission of conserving land.

Funds are used to let landowners know about their conservation options, support the legal, appraisal, and other technical aspects of securing land, and then maintaining the property in order to ensure its conservation over the long term. We may also undertake some other activities, such as interpretive signage, or trail maintenance. Some of the larger costs may be for technical fees, severances to allow parts of properties to be conserved, insurance and property taxes.

What are my land conservation options?

There are many options for landowners who wish to conserve their lands. EALT helps sort through these to find the one or combination that makes the most sense. Essentially, the options are of two categories:

options if you want to retain ownership for the long term
options if you want to sell or transfer the property

Landowners can donate all or a part of their land to EALT or enter into an agreement (conservation easement) that will protect the land, even after a change in ownership.

Retaining life interests, donations with some payment, and other creative approaches are possible. Certain options may be preferred due to their tax benefits. For more details, please see the section on Landowner Benefits or contact us.

How can I continue to own my land but oblige future owners to protect its natural heritage features?

A conservation easement donated to a land trust is attached to the title of the property in perpetuity. As a result, all future landowners are bound to its terms.

Current and subsequent landowners are free to sell or otherwise transfer title to the land. Yet the conservation easement is still held by the land trust and the land continues to be subject to the conditions of the conservation easement. An easement donated on a voluntary basis may qualify as an ecological gift under the Income Tax Act of Canada, allowing corporate or individual donors to obtain an official donation receipt and claim an enhanced tax benefit.

I want to donate but don’t know where to start – where can I get help?

Potential donors can contact EALT directly.

It is very important that you find a recipient who you trust and feel comfortable with. EALT will do everything possible to help you feel very comfortable working with them through the entire donation process, since you are ultimately entrusting us with your land or an interest in your land. It is also advisable to get independent legal and financial advice about land donations.

What is an Ecological Gift and its tax benefits?

An Ecological Gift (or “Ecogift”) is a donation of land or a conservation agreement under the federal tax program of the same name. The land donated as an Ecogift must be considered ecologically sensitive under various criteria, by Environment Canada. The Ecological Gifts Program (EGP) provides a way for those with ecologically sensitive land to protect natural areas and leave a legacy for future generations, through special tax assistance.

Since 1995, the EGP has become a valuable tool in conserving threatened habitats and biodiversity. As a partnership among landowners, conservation organizations and government, it provides favourable income tax treatment for land or conservation easement donations, and greater recognition of the value of individual conservation actions.

Donors of Ecogifts receive a donation receipt for the fair market value of the gift. An Ecogift allows donors to claim their charitable credits against 100% of income in the year the gift is made. Unused credits can be carried forward and used over a further five years. Recent changes by the federal government mean that an Ecogift designation now also eliminates capital gains tax.

Under the EGP, Environment Canada certifies the land is ecologically sensitive, approves the recipient, and certifies the fair market value of the gift. In addition to the charitable donations tax credit (for individuals) and the charitable donations deduction (for corporations), donations made on or after May 2, 2006 and certified under the Ecological Gifts Program will no longer be subject to tax on any capital gains accruing in respect of the property.

Ecogifts receive tax treatment that is superior to most other charitable gifts:

Eliminated taxable capital gain on the disposition of the property (38 (a.2) ITA)
No income limit for calculating the tax credit/deduction (118.1 ITA)
Donation value certified by the Government of Canada (118.1(10.1 to 10.5) ITA)
Tax liability for donees that do not protect the gifted land (207.31 ITA)

Every case is different, so you should seek professional advice.

How do I determine the natural value of my property?

EALT can assist you in determining whether your site has important natural heritage features. This could also be confirmed by discussions with your municipal administration. The Land Trust can also show you how to protect your land in a way that meets your interests.

How can I make a donation to a Canadian Land Trust if I am an American, and what are the tax implications?

A new organization has been created to support Canadian Land Trusts and their conservation efforts across Canada through cross-border conservation. The American Friends of Canadian Land Trusts (AFoCLT) was conceived through the work of the Nova Scotia Nature Trust’s cross-border conservation initiative.

Effectively December 4, 2007, US residents may make cash donations to AFoCLT. The donor may make a recommendation of a grant towards the Canadian land trust or government entity of their choice.

To learn more about the American Friends of Canadian Land Trust and how they support cross-border donations, please see http://nsnt.ca/ourwork/campaigns/afoclt/

Why is it important to conserve properties in the Edmonton region?

It is the natural and cultural landscapes that make our region unique and special.

There are growing pressures on such features, their recreational and aesthetic values, as well as their functions and the species they support. These pressures and the resulting changes can affect the character of region and its attractiveness for residents, businesses and visitors.

The Edmonton & Area Land Trust works with people and other agencies to maintain these special places in our region.

What is the difference between EALT and other organizations?

EALT is a registered charity, meaning that it operates solely for public benefit and can issue tax receipts. In addition, EALT is registered with Environment Canada’s Ecological Gifts program, which enables additional tax benefits to donors.

While we support many conservation and stewardship activities offered by other organizations, what distinguishes EALT is our focus on long-term legal commitments to conservation (called “securement”). This means that conserved lands remain conserved and will not potentially be at risk when a good steward transfers the property to a new owner.

EALT has no regulatory powers to tell anyone what to do, unlike governments and quasi-governmental agencies.

Edmonton and Area Land Trust

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