Sample for Practice 6D: Spending Policy for Endowment and Stewardship Fund

An overview of the importance of having a clear policy and procedures for establishing and managing dedicated or permanently-restricted funds.

This is an investment and spending policy from the accredited Land Trust for Santa Barbara County.

This is a sample landowner pledge form for contributions to the Conservation Easement Stewardship Endowment Fund and Legal Defense Fund from the accredited North Branch Land Trust.

This is a sample fee land stewardship policy from the accredited Hudson Highlands Land Trust.

A sample stewardship and legal defense fund calculation from the accredited Hill Country Conservancy.

In a recent tax court case, Sheidelman v. Commissioner, the IRS argued and the court agreed that the stewardship contribution accompanying a historic preservation easement donation was akin to a mandatory payment, and thus was not deductible as a charitable contribution. Land trusts should be clear about whether they are requesting or requiring stewardship contributions, and inform the landowner about tax implications. This factsheet also includes guidelines for land trusts looking to preserve deductibility.

This guidance covers Practice 6D: Written Internal Controls.