Others

The most popular methods for selling land for conservation are listed in the navigation bar at left. The following options are less common because they apply only in specialized circumstances and/or offer only temporary protection. As a result, not all conservation groups use these options, while others will do so only in exceptional cases.

Like-kind exchange

A like-kind exchange allows you to trade income or investment property for other property. Because the transaction is considered a trade rather than a sale, you can defer capital gains taxes on the relinquished parcel until you sell the replacement property.

Conservation groups are often eager partners for landowners who want to trade lower-quality farm ground for better ground. Unlike the typical farm buyer, conservation groups prefer low-lying ground with wetland features, highly erodible slopes with native prairie or “rough” ground that might contain endangered species.

Like-kind exchanges are covered under Section 1031 of the Internal Revenue Code. Its rules are very complicated, so be sure to consult with a professional tax advisor.

Deed restriction

When you sell, donate or transfer land to anyone, you can give it short-term protection by placing language in the deed to restrict how it can be used. These restrictions remain in effect for only 21 years. The deed restriction also designates benefited parties—such as neighbors or a conservation partner—who have the right to re-record the restrictions and extend their provisions for additional 21-year increments and to enforce the restrictions.

Deed restrictions are much simpler to put in place than conservation easements. However, because they don’t offer the consistent monitoring, enforcement and permanence of conservation easements, deed restrictions generally aren’t the preferred option for sites with particularly rare or sensitive natural resources. They also do not qualify as a charitable contribution for income tax purposes.

Find more details about the financial and tax impacts of conservation protections.