Quick overview

Donating a conservation easement transfers specific property rights (for example, development rights) to a qualified conservation organization to protect natural, scenic, agricultural, or historic values. A thorough checklist helps avoid common legal and tax pitfalls, clarifies documentation you must keep, and outlines the stewardship responsibilities that continue after the gift is recorded. In my practice advising landowners and land trusts, a clear checklist shortens the timeline, reduces cost surprises, and strengthens the donor’s IRS substantiation file.

Who should use this checklist

  • Private landowners considering a permanent restriction on development or use.
  • Farmers and forest owners preserving working landscapes.
  • Estate planners evaluating land legacy and tax strategies.

If you own land with conservation value and are curious about a donation’s tax implications, this checklist organizes the legal, technical, and tax steps you’ll need to complete.

Pre-donation essentials (steps 1–4)

  1. Confirm conservation purpose and qualified donee
  • Verify the prospective holder is a qualified organization—typically a 501(c)(3) land trust or government entity whose mission includes conservation (IRS guidance: see Conservation Easements page: https://www.irs.gov/charities-non-profits/conservation-easements).
  • Discuss the conservation values (scenic, habitat, agricultural, historic) to confirm the easement qualifies as a ‘‘conservation purpose’’ for tax rules.
  1. Assess your goals and restrictions
  • Decide which rights you will keep (e.g., farming, timber harvest, building a residence) and which you will relinquish (e.g., subdivision, commercial development).
  • Distinguish between a deed restriction (often permanent) and a temporary or partial interest (these can affect tax treatment).
  1. Title and ownership review
  • Pull an up‑to‑date title report to confirm all owners, liens, mortgages, mineral rights, and easement exceptions. You may need lender approval if there is a mortgage—get this early.
  • Consider an owner’s estate plan: a recorded easement affects estate valuation and future heirs.
  1. Baseline documentation
  • Prepare a baseline report documenting pre-donation property condition (maps, photos, habitat surveys). This supports monitoring and IRS compliance over time and is best done before the easement is recorded.

Technical and legal steps (steps 5–8)

  1. Engage a land trust or qualified holder
  • Choose an organization experienced with similar properties. Check organizational capacity for monitoring and enforcing the easement for perpetuity.
  • In my work, I’ve seen projects stall because the holder lacked long-term stewardship funding—confirm funding or endowment plans.
  1. Obtain a qualified appraisal
  • A qualified appraisal establishes the value before and after the easement. For tax deductions, the IRS generally requires a qualified appraisal for noncash gifts above specified thresholds; consult a CPA or review Form 8283 instructions (https://www.irs.gov/forms-pubs/about-form-8283).
  • Use an appraiser experienced in conservation easements; an appraiser unfamiliar with easement valuations can produce an unreliable report that jeopardizes a deduction.
  1. Draft the easement deed and legal documents
  • Work with counsel who knows conservation easements. The deed should clearly state permitted/prohibited uses, monitoring rights, amendment limitations, and reversionary interests (if any).
  • Ensure the document satisfies state property law and the holder’s standards.
  1. Title insurance and exceptions
  • Review and, if necessary, obtain endorsements or exceptions in the title policy to reflect the easement. See our glossary entry on the Easement Exception in Title Policy.

Tax substantiation and filing (steps 9–12)

  1. Understand IRS qualifying rules
  • The easement must be a qualified real property interest, donated in perpetuity to a qualified organization, and have a conservation purpose (IRS). Keep records of the conservation purpose and the organization’s eligibility. See IRS guidance on conservation easements: https://www.irs.gov/charities-non-profits/conservation-easements.
  1. Gather required documentation
  • Common documents to include with your tax file: deed of easement, qualified appraisal, baseline documentation, a letter from the donee acknowledging receipt and describing the conservation purpose, and any legal opinions obtained.
  • For noncash donations, Form 8283 is typically used—follow the latest Form 8283 instructions (https://www.irs.gov/forms-pubs/about-form-8283). If your deduction exceeds thresholds that trigger Section B, a qualified appraiser’s signature and certain attachments will be required.
  1. Know AGI limits and carryovers
  • Charitable deductions for conservation easements are subject to adjusted gross income (AGI) limits and carryforward rules. These limits can be technical and may change; confirm current IRS limits with your tax advisor before claiming the deduction.
  1. Consider state tax incentives and credits

Stewardship and long-term responsibilities (steps 13–16)

  1. Monitoring plan
  • The holder must monitor compliance with the easement terms. Expect annual or periodic site visits and a monitoring report. Donors should understand and document who pays for long-term monitoring.
  1. Amendment and enforcement rules
  • Perpetuity is a core requirement for tax benefits. Amendments that materially impair conservation purposes may endanger the easement’s tax treatment and the organization’s qualification to hold it.
  1. Accounting and record retention
  • Keep a dedicated file with the deed, appraisal, baseline documentation, monitoring reports, communications with the holder, and copies of tax returns with attached forms. Maintain this indefinitely.
  1. Transfer and estate planning
  • If you sell or transfer the property, the easement stays with the land. Estate plans should reflect the easement’s effect on estate valuation and potential estate tax calculations.

Practical timeline and costs

  • Typical timeline: 3–12+ months. Smaller, straightforward gifts to experienced holders may close in a few months; complex properties or transactions requiring lender consents and specialized appraisals often take longer.
  • Common costs: appraisal fees, legal fees, baseline studies, title work, and possibly stewardship endowment contributions. Expect variable costs depending on property complexity and local market rates.

Common mistakes and how to avoid them

  • Waiting to involve lenders: Start lender conversations early if mortgages exist.
  • Using a general appraiser: Hire an appraiser with easement experience.
  • Inadequate baseline documentation: Take detailed photos and inventories before recording the easement.
  • Choosing an underfunded holder: Confirm stewardship funding and institutional capacity.

Example checklist (printable)

  • Confirm qualified donee status.
  • Define conservation goals and rights to be retained.
  • Obtain title report and lender consents.
  • Commission a baseline documentation report (maps, photos).
  • Secure a qualified appraisal.
  • Draft and review easement deed with experienced counsel.
  • Ensure title insurance reflects the easement.
  • Collect donee acknowledgement letter.
  • Complete Form 8283 and attach required documentation.
  • Record the easement deed with local land records.
  • Fund or confirm stewardship arrangements.
  • Keep permanent records and schedule monitoring visits.

FAQs (brief)

  • Who qualifies as a donee?
    A qualified donee is typically a public charity (often a land trust) or government entity organized for conservation; verify IRS status before donating.

  • Is the easement always perpetual?
    To qualify for the federal charitable deduction, the easement generally must be perpetual. Short-term or revocable interests usually do not qualify.

  • What paperwork does the IRS expect?
    Generally: deed of easement, qualified appraisal (when required), donee acknowledgment, Form 8283, and baseline documentation. Check Form 8283 instructions for thresholds and signature requirements: https://www.irs.gov/forms-pubs/about-form-8283.

Related reading on FinHelp

Final tips from my practice

In my 15+ years advising landowners, the single biggest determinant of a smooth donation is early collaboration between the donor, the prospective holder, and a tax advisor. Start conversations before commissioning expensive appraisals and get lender buy‑in if mortgages exist. Good baseline documentation and a seasoned appraiser will protect your deduction and the conservation outcome.

Professional disclaimer

This article is educational and does not constitute legal, tax, or financial advice. Tax rules change and individual circumstances vary—consult a qualified tax professional, attorney, or land trust before donating a conservation easement. For IRS guidance on conservation easements and declaratory rules, see the IRS conservation easement resources: https://www.irs.gov/charities-non-profits/conservation-easements and the Form 8283 page: https://www.irs.gov/forms-pubs/about-form-8283.

Sources and further reading