The Keystone Conservation Trust has designed a new funding tool--the Legacy Property Fund-- for individuals and nonprofit groups interested in supporting conservation and environmental projects through the sale of homes and other real estate.

This summer the Pennsylvania Horticultural Society received nearly $300,000 from a source of money it never had before due to the work done by the Trust.

This contribution used the proceeds from the sale of a donated summer cottage to benefit PHS’s future capital projects. The donation of the property to KCT allowed PHS’ donor, Alan Slack, to convert his cottage into cash, increase his return on his gift, lower his taxes, and provide him future retirement income.

For PHS, the Legacy Property Fund provided a new and significant means to increase capital for the organization in a short time, at no cost, and essentially without any effort. The ongoing goal for PHS is to use the Legacy Property Fund to provide PHS’ donors with a simple and meaningful way to leverage the enormous asset base of their homes to help PHS meet its mission.

“KCT brought the skills, capability and professional experience we needed to make sure the donation happened. It was the perfect connection for PHS” said Jane Pepper, President, Pennsylvania Horticultural Society. “KCT married the desires of the donor with the needs of our organization.”

For the donor, KCT’s Legacy Property Fund made it possible to increase his gift to PHS while saving 16 percent in taxes and generating future income for his retirement needs…truly a win-win-win.

The sales proceeds will be placed into a charitable gift annuity which will pay income to the donor until the time of his death, at which time PHS will receive the remaining principal for its capital needs.

For donor and PHS alike, unlocking the property’s value provided enormous satisfaction, funding, and meaning in the lives of many.

“PHS has been a major part of my adult life, and KCT’s Legacy Property Fund program afforded me the opportunity to help keep PHS financially sound in the future,” said Alan Slack, donor of property to KCT and PHS. “KCT led PHS in launching what is and will continue to be a very valuable and successful tool for philanthropy.”

For more information about KCT’s Legacy Property Fund and how it can enhance charitable giving, call Phil Wallis, President, Keystone Conservation Trust at 610-688-3151 or send email to: pwallis@keystoneconservation.org .

Here is a quick summary of how this new tool works--

Keystone Conservation Trust designed the Legacy Property Fund to provide maximum financial and philanthropic benefits to individuals and non-profit organizations through the sale of homes and other real estate. The tool also provides conservation benefits, relieves one of the burden of moving, and offers a powerful mechanism to demonstrate philanthropic leadership in one’s community - generating new capital for philanthropy.

Much like the donation of an appreciated security, the donation of part or all of one’s property into the Legacy Property Fund allows a donor to minimize taxes and transaction costs while maximizing philanthropic benefits according to one’s own personal timetable and needs:

· Minimizes or eliminates capital gains tax at the time of sale, and instead converts the saved tax into a charitable gift while receiving an income tax deduction;

· Reduces transaction costs of the sale (i.e., transfer tax, brokers’ and legal fees);

· Shifts the home from being an estate tax burden to a significant charitable asset and gifting opportunity within one’s wealth management strategy; and

· Gives your preferred charity(ies) the full, higher donated value of the asset gift, not reduced by taxes and transaction costs.

The Legacy Property Fund tool, Keystone Conservation Trust also provides non-tax benefits to the donor and non-profit organization(s):

· Allows the donor to live on the property for as long as desired

· Handles all aspects (logistics and liability) of the donation and sales transaction

· Accepts and resells any residual property (furniture, etc.) for charitable benefit

· Distributes the net sales proceeds to charity(ies) of the donor’s choice

The Trust offers significant conservation benefits to the donor and organization(s):

· Conserves the beauty of the donated property forever at the time of re-sale;

· Magnifies the conservation impact for an individual by pooling the individual’s home sale proceeds in the Legacy Property Fund with the monies from others. The pooling increases the total amount and flexibility available through the Legacy Property Fund for critical conservation projects in need; and

· Protects our cherished natural and cultural resources from sprawling development.

The Legacy Property Fund allows donors of all income ranges and property values to consider meaningful gifts to their favorite charity(ies) through their home…a gift which many have never considered, can provide individual tax savings and can translate the savings into philanthropic gifts.

These “Homes for Philanthropy” can demonstrate philanthropic leadership at all levels for many.

11/10/2006