The Lenfant Trust

A Conservation Easement is a valuable and irrevocable charitable gift
that will affect your property permanently. You should always do your homework before you donate.

•	Learn about the easement holding organization. The L'Enfant Trust has held and monitored easements, worked with donors, and provided responsible local easement stewardship in Washington, D.C. for over 30 years. Get to know all you can about the organization that will hold easement rights to your property. Get to know its staff and visit its offices. Check out its reputation. You can make inquiries at the National Trust for Historic Preservation located at 1785 Massachusetts Avenue, N.W. 202.588.6000.
•	Beware of over-aggressive promotion. Contrary to how certain promoters characterize the new 2006 legislation, the new law is not a reaffirmation of the old law. The new legislation is aimed at curbing abuses and puts added responsibility on the donor, the appraiser, and the easement holding organization. Along with familiarizing yourself with the new legislation, you should know that taking a large tax deduction increases the chance that your tax return will be audited by the IRS. If a promoter tells you otherwise, seek better counsel.
•	Know the effects of donating a Conservation Easement. Carefully read the easement deed which creates restrictions on your property. These restrictions are separate from and in addition to local preservation laws. Future changes to your property will in most instances require permission from both the organization holding your easement and from local government.
•	Get tax advice from tax experts. Be careful of where you get your advice. The tax deduction associated with easement donation is large and if your return is examined by the IRS, you want to be sure your easement is properly appraised and the fees associated with your gift have been properly deducted.
•	Important note on deductibility: The cash contribution and the easement donation you make to the Trust are ordinarily deductible as gifts to a 501(c)(3) organization. Fees associated with services are not deductible as a charitable contribution, though may be deductible under other tax code provisions. Such fees would include appraisal fees, bank fees, and any fee you pay for processing your paperwork. Be cautious about deducting indirect fees (e.g., where the charity pays out a portion of your cash contribution to a for-profit processor who handles your paperwork). Make sure the trust accepting your gift acknowledges in writing the value of any goods or services it provides you in return for your donation.