Contents

§ 9.7 REAL PROPERTY USED FOR CONSERVATION PURPOSES• A publicly supported charitable organization that is the service providertype 147• A supporting organization that is controlled by one or more of the foregoingthree types of entities 148In addition, to be an eligible donee, an organization must have a “commitmentto protect the conservation purposes of the donation, and have theresources to enforce the restrictions.” 149 A qualified organization is notrequired to set aside funds to enforce the restrictions that are the subject of thecontribution. 150A deduction is allowed for a contribution under these rules only if, in theinstrument of conveyance, the donor prohibits the donee from subsequentlytransferring the easement (or, in the case of a remainder interest or the reservationof a qualified mineral interest, the property), whether or not for consideration,unless the donee, as a condition of the subsequent transfer, requires thatthe conservation purposes which the contribution was originally intended toadvance be carried out. Moreover, subsequent transfers must be restricted toorganizations qualifying, at the time of the subsequent transfer, as eligibledonees. 151 Nonetheless, when a later “unexpected” change in the conditions surroundingthe property that is the subject of a donation makes “impossible orimpractical” the continued use of the property for conservation purposes, theserequirements will be met if the property is sold or exchanged and any proceedsare used by the donee organization in a manner consistent with the conservationpurposes of the original contribution. 152(c) Conservation PurposeThe term conservation purpose means one of the following:• Preservation of land areas for outdoor recreation by, or for the educationof, the general public 153• Protection of a relatively natural habitat of fish, wildlife, or plants, or similarecosystem 154• Preservation of open space (including farmland and forest land), whenthe preservation is for the scenic enjoyment of the general public147 IRC § 170(h)(3)(B)(i). This type of publicly supported organization is described in IRC § 509(a)(2). See§ 3.4(a)(iii).148 IRC § 170(h)(3)(B)(ii); Reg. § 1.170A-14(c)(1). A supporting organization is an organization that is not a privatefoundation by reason of IRC § 509(a)(3). See § 3.4(a)(iv).149 Reg. § 1.170A-14(c)(1). A conservation group organized or operated primarily or substantially for one of theconservation purposes (see § 9.7(c)) is considered to have the requisite commitment. Id.150 Id.151 Reg. § 1.170A-14(c)(2).152 Id.153 IRC § 170(h)(4)(A)(i).154 IRC § 170(h)(4)(A)(ii). 287