land donation is one of the most powerful tools for conservation—and one of the most misunderstood. property owners often don't realize they can donate land, or assume the process is too complicated. this guide covers everything you need to know.
what is a land donation?
a land donation is a charitable gift of real property to a qualified nonprofit organization. the donor transfers ownership (or partial rights) to the organization, which then uses the land for its charitable purposes—in conservation organizations, that means protecting ecosystems, restoring habitat, and stewarding natural resources.
key benefits:
- tax deduction based on fair market value
- elimination of capital gains taxes
- permanent protection for land you care about
- simplified estate planning
- often easier than selling
types of land donations
outright donation
the simplest form: you transfer full ownership to the conservation organization. you receive a charitable deduction for the land's fair market value.
pros: maximum deduction, clean break, no ongoing obligations cons: lose all use and control of the land
conservation easement
you keep ownership but permanently restrict certain uses—typically development, subdivision, or resource extraction. the land stays in private hands but can't be built on.
pros: keep using the land, retain ownership, still get significant deduction cons: more complex to structure, ongoing monitoring, may affect resale value
bargain sale
you sell the land below fair market value; the difference between sale price and market value counts as a charitable donation.
example: land worth $400,000 sold for $200,000 = $200,000 cash received + $200,000 charitable deduction.
pros: get some cash while still receiving tax benefits cons: some capital gains tax on the sale portion
life estate / retained life interest
you donate the land but retain the right to live on and use it for your lifetime (or a term of years). the charity receives "remainder interest" and takes full ownership when your interest ends.
pros: keep living on your land, get immediate deduction (discounted for retained interest) cons: more complex valuation, restrictions on property modifications
bequest / testamentary gift
you include the land in your will, with the transfer happening at death. no lifetime tax benefit, but the land passes outside your taxable estate.
pros: maintain full control during lifetime, estate tax benefits cons: no income tax deduction, heirs may contest
tax benefits in depth
the charitable deduction
when you donate land to a qualified 501(c)(3) organization, you can deduct its fair market value as a charitable contribution.
deduction limits:
- generally 30% of adjusted gross income (AGI) for appreciated property
- 50% of AGI for conservation easement donations by qualified farmers/ranchers
- unused deductions carry forward for 5 years (15 years for qualified farmers/ranchers)
example calculation:
| your situation | |
|---|---|
| land fair market value | $600,000 |
| your AGI | $200,000 |
| year 1 deduction (30% of AGI) | $60,000 |
| carryforward | $540,000 |
| years to fully deduct | 10 years (limited by 5-year carryforward) |
capital gains elimination
if you've held the land more than a year and it's appreciated, donating instead of selling eliminates capital gains tax entirely.
example:
- original purchase price: $100,000
- current fair market value: $600,000
- capital gain if sold: $500,000
- federal capital gains tax avoided: $100,000+ (at 20%)
- state taxes avoided: varies by state
estate planning benefits
land donated during your lifetime isn't part of your taxable estate. for large estates, this can save 40% in estate taxes on the property's value.
land donated by bequest also passes outside the estate, but you don't get the lifetime income tax deduction.
choosing a land donation recipient
not all conservation organizations are equal. key questions to ask:
will they actually conserve the land?
some charities accept land only to sell it, using proceeds for other purposes. ask directly: what will happen to my specific property?
BASIN's approach: we evaluate every property for conservation potential. high-value natural lands go into permanent protection. degraded lands enter restoration programs. only properties without conservation use are sold.
can they accept complicated properties?
many land trusts reject properties with buildings, environmental issues, title problems, or unusual characteristics. if your property is "complicated," find an organization equipped to handle it.
BASIN's approach: we accept any property, anywhere, in any condition. complicated properties often have the greatest restoration potential.
how fast can they move?
traditional land trusts may take months to evaluate and accept a donation. if you have tax deadlines or other time pressures, ask about timeline.
BASIN's approach: we respond within 24 hours and can close most donations in 30-60 days. we expedite for year-end tax planning.
what's their track record?
look for organizations with established conservation programs, transparent finances, and demonstrated outcomes.
the land donation process
step 1: initial contact — discuss your land, your goals, and whether donation makes sense. free, no obligation.
step 2: property evaluation — assessment of fair market value, natural capital value, and conservation potential.
step 3: structure selection — choose outright donation, bargain sale, life estate, or other structure based on your needs.
step 4: professional coordination — work with your attorney, tax advisor, and our team to document the gift properly.
step 5: closing — execute the deed transfer or easement. we handle recording and administrative details.
step 6: ongoing stewardship — your land enters our conservation or restoration program with documented outcomes.
common questions
do I need an appraisal?
yes, for tax purposes you need a qualified independent appraisal for property donations over $5,000. we can recommend appraisers familiar with conservation transactions.
what if I only own part of the land?
you can donate your fractional interest. we work with co-owners to structure gifts that work for everyone involved.
can I donate land in another state or country?
yes. we accept land anywhere and work with local partners for international properties.
what if there's a mortgage?
possible but complex. the debt relief is treated as taxable income, offsetting some of the charitable benefit. we can structure these gifts to minimize impact.
how do I get started?
reach out with basic information about your land. we'll have an initial conversation within 24 hours.
related guides:
- how to donate property to conservation — general property donation guide
- donate land to conservation — quick-start guide for land
- donate real estate for conservation — buildings and developed property