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American Friends’ Leaders Lauded in Ontario

Three individuals who have shaped cross-border conservation were recognized with awards by the Ontario Land Trust Alliance (OLTA). Current director Allyn Abbott and long-serving former director Christopher Baines were honored with the Angus McLeod Vision Award for volunteer service. Sandra Tassel, a former director and officer, who now serves as American Friends’ Program Coordinator, received the OLTA Vision Award for a land trust professional.

L to R, Alison Howson, Executive Director of Ontario Land Trust Alliance with award winners Sandra Tassel, Allyn Abbott and Christopher Baines (all associated with American Friends) and Shining Waters from RARE.

From OLTA’s website:

There were two recipients for the Angus McLeod Vision Award: Allyn Abbott and Christopher Baines.

“Allyn Abbott has been dedicated to the land trust movement for more than 14 years. She joined the board of Muskoka Heritage Trust in 2004. She lead the merger that formed the Muskoka Conservancy as its president and remains on the board and serves as chair of the Land Acquisition and Management Committee. Allyn willingly shares her knowledge to any staff and directors.”

Christopher Baines has been a “force of nature” and a “force for nature” within Ontario’s land trust community for over twenty-five years. He has been a triple-threat – or perhaps, more accurately, a triple advocate – for the land trust community, active at the local, provincial and international levels in a wide variety of capacities.

There was one recipient of the OLTA Vision award – Sandra Tassel.

Sandra Tassel serves as Program Coordinator for American Friends, applying nearly 30 years’ experience in conservation acquisitions in the U.S. and Canada. Through Sandy’s careful stewardship, American Friends has been the leading pioneer for cross-border conservation in Canada. In working with OLTA, its member organizations and collaborators, Sandy has been a creative, supportive and strategic ally and knowledgeable resource for Ontario’s land trust community.”

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Canadian-American Cross-Border Conservation Success

Drache Aptowitzer LLP, recognized as one of Canada’s foremost experts in the law related to charities and non-profit organizations, recently published a story about a conservation donation in Georgian Bay, Ontario. The Georgian Bay Land Trust (GBLT) had an opportunity to protect an undeveloped island featuring undisturbed stands of White Pine and Red Oak, open rock barrens and coastal meadow marsh, ideal habitat for rare species.

Read the full story

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Conservation on Prince Edward Island, Island Nature Trust

American Friends’ newest partnership, with Island Nature Trust (INT), can contribute to national success on both fronts by helping to increase protected lands in the province of Prince Edward Island (PEI).

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Beloved New Reserve Inspired by Happy Old Memories

Barry Graham says he “gets goosebumps” when he visits Magnetawan Watershed Land Trust’s (MWLT) new conservation area, known as the Old Man’s Creek Reserve. The 240 acre property, with its landmark waterfall, and namesake waterway, was one of the first in Ontario to be transferred from American Friends to a Canadian partner organization.

The lands and waters encompassed by the Reserve have been part of Graham’s life since he was an infant, and his family brought him from Rome, Georgia to their summer home on Ahmic Lake nearly 70 years ago. Graham, who is the
president of the MWLT board and now a resident of Washington DC, recalls canoeing across the lake to Old Man’s Creek.

Many other Ahmic Lake cottagers and local residents of the local community share fond memories of exploring this beautiful property. So there was widespread consternation when a developer bought the land and secured approval for a subdivision on the creek; threatening Ahmic Lake’s pristine water quality and closing access to the iconic falls.

To avoid destruction of their venerated retreat, area property owners formed MWLT to pursue its permanent protection. They were inspired by Ted Rouse, who promised to acquire the land and donate it for conservation if his neighbors created a conservation organization that could assist with a cross-border gift.

So it was that MWLT was one of American Friends’ early transaction partners, and Ted Rouse an essential early supporter. In 2012, he donated the majority of the land that is now the Reserve to American Friends. Since then MWLT has been managing the property to both preserve its natural qualities and make it available for visitors, young and old, to enjoy.

Graham reports that the public access has won fans from around the community, including elected officials who view the preserved land and trails as an asset for tourism.

Thanks to the generosity of Rouse and major contributors who acquired other parcels in the Reserve, and the efforts of volunteers from both MWLT and American Friends, Old Man’s Creek and the lands that surround it will remain undeveloped and as beautiful as Graham remembers them.

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Announcing Save Some Green: guide for US owners of Canadian Property

FINALLY! A guide for US owners of Canadian Property

Download Save Some Green: A Handbook for US Taxpayers

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Protect Canada’s natural heritage and your savings at the same time

Canadian land trusts – Share this bulletin with your U.S. Supporters.

The new U.S. tax law that went into effect on January 1, 2018 limits itemized deductions making it more difficult to lower your income taxes by making charitable gifts. But there is still an opportunity for you to help American Friends conserve places you love in Canada while also reducing your U.S. taxes. If you have an Individual Retirement Account (IRA) and are over the age of 70 1/2, you can donate to American Friends using funds in your IRA, and avoid tax on the Required Minimum Distribution (RMD) from your tax-deferred retirement account.

Your RMD is the minimum amount you must withdraw from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account each year. Your withdrawals will generally be included in your annual taxable income.

A Qualified Charitable Distribution (QCD) is an otherwise taxable distribution that is paid directly from your IRA to a qualified charity, such as American Friends. You can satisfy all or part the amount of your RMD by making a QCD, while not adding to your taxable income. You can exclude up to $100,000 a year of distributions.

Your QCD will save natural lands in Canada for future generations while potentially providing additional tax benefits by lowering your overall adjusted gross income (AGI). Possible positive financial results include:

  • Reducing or eliminating tax on social security benefits
  • Lowering capital gains tax rates
  • Increasing amount of deductible medical expenses
  • Minimizing the net investment tax
  • Avoiding higher Medicare Part B premiums.

Talk to your tax professional to create a Qualified Charitable Distribution strategy to reduce your taxes and support American Friends and its Canadian partners. As always, you can request that American Friends use your contribution to make a grant to one of our qualified partner organizations.

Contact Sandra Tassel, Program Coordinator, American Friends of Canadian Conservation (360) 515-7171, sandra.tassel@conservecanada.org, for more information about how to invest in Canada’s wild places.

Thanks to Gail Kruk (CPA, CGA), a cross-border tax specialist with Larson Gross, in Bellingham WA. (360) 734-4280, gailk@larsongross.com.

AF Featured in Sault This Week: U.S. Group Repatriates Canadian Wild Lands

By Sara McCleary

Living in a border town surrounded by abundant natural lands, Saultites know Americans frequently cross the bridge to come enjoy the Canadian wilderness.

They also know those Americans often own land here in Canada, sometimes with the land having been passed down generation after generation.

Because many of those American-owned lands are important to conservation efforts in Canada, a unique American charity works to help American landowners transfer their properties to Canadian conservation groups to preserve the lands’ wildlife and natural habitats — and without having to pay hefty Canadian tax bills.

American Friends of Canadian Conservation has operated since 2007 with the goal of protecting Canada’s natural heritage by helping American owners of Canadian lands navigate their way through the complicated legal and tax requirements that come with being cross-border landowners.

“They often don’t know that they’re Canadian taxpayers and they can’t just give the land to their kids,” Sandra Tassel, American Friends program coordinator, told Sault This Week.

“We’ve had people come, ready to donate their property, and find out they have a whopping tax bill because they didn’t know they had to pay capital gains in Canada when they got it from their parents.”

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Cross-border Conservation Training Program

Recognizing that American-owned lands are key conservation properties in many land trust catchment areas in Ontario, the Ontario Trillium Foundation has provided funding over three years to American Friends and Ontario Land Trust Alliance to launch the Cross-border Conservation Training Program (CCTP) in 2016.

The goal is to increase the collective capacity of Ontario conservation organizations to be successful at “cross-border conservation” – to secure high-priority conservation properties owned wholly or partly by US taxpayers – and to bring more funding to support such work. We envision offering training opportunities in the form of workshops and one-on-one mentoring. CCTP also has funds for mapping, communications resources, and a small grants program to assist OLTA members with the costs of initiating cross-border conservation gifts.

Rainy Lake Conservancy, Georgian Bay Land Trust, Lake Superior Watershed Conservancy, Magnetawan Watershed Land Trust and The Bruce Trail Conservancy have all partnered with AF to secure one or more of these cross-border conservation gifts.  In Ontario, 12 cross-border gifts combine to protect over 800 acres since 2011.  US income tax benefits made these gifts financially feasible for the owners, many of whom have passed their Canadian properties down through generations. The total appraised value of these gifts is over $6 million USD.

The Old Man Creek Preserve was saved from subdivision and development by an American who acquired the land and donated it to American Friends of Canadian Conservation in a transaction facilitated by the Magnetawan Watershed Land Trust.

Conservation organizations can help develop the program by completing this short, online survey.

Professional advisors and conservationists can gain more information and become involved by contacting:

Sandra Tassel, American Friends Program Coordinator, or Kristen Callow, OLTA Program Officer.

US Enhanced Conservation Easement Tax Incentive

Little Annapolis Lake

Big news for conservation
Last week the US Congress gave a wonderful year end gift to preservation advocates, protection-oriented landowners and anyone who values natural, wild places. In a bi-partisan vote that reflects Americans’ interest in conservation, irrespective of their other political leanings, both the House and Senate voted to make the “Enhanced Conservation Easement Tax Incentive” permanent and retroactive to the beginning of 2015.

Here’s what that means to American Friends, its partners and US taxpayers who own ecologically-sensitive land, including in Canada.

What is the Conservation Tax Deduction?
The US conservation tax deduction allows a landowner to claim a federal income tax deduction for the value of a donated conservation easement that meets requirements of a qualified conservation contribution — similar to other charitable donations. The value of the conservation easement is generally calculated by determining the difference in property value before and after the conservation easement is registered on title. The landowner donated that amount by restricting the potential future uses of the protected land.

Without the enhanced incentive a landowner could only deduct the value of a conservation easement, up to 30% of his or her adjusted gross income (AGI), for up to six years. (The year of the gift, plus five years of carry forward.)

These former limits meant that taxpayers without high taxable incomes might not be able to fully utilize the charitable deduction associated with an easement gift. It was a serious disincentive for people of more modest means to donate conservation easements, especially in areas where property values have appreciated substantially and/or when a landowner wanted to preserve their land’s natural character by eliminating most or all development. The more future development the landowner foregoes the higher the appraised value of the easement, hence the tax incentive conundrum which has been addressed by the new legislation.

What is the Enhanced Incentive and How Does it Work?
The enhanced incentive raises both the AGI limit and the length of time over which donor can use the tax deductions. These modifications can make a big difference in the financial bottom-line produced by donating a conservation easement.

Landowners with modest incomes, or who donate conservation easements that are very valuable, will now be able to fully use their deductions and reduce their tax burden. Farmers and ranchers are eligible for even higher deduction allowances.

The specifics of the enhanced deduction:

  • Raises the maximum deduction a donor can take for donating a qualified conservation easement from 30% of their adjusted gross income (AGI) in any year to 50%.
  • Allows qualified farmers and ranchers to deduct up to 100% of their AGI.
  • Increases the number of years over which a donor can take deductions from a donation of a qualified conservation easement from 6 to 16 years.

The newly-approved incentives mean that voluntary land conservation will be even more attractive to US taxpayers who own ecologically important land in Canada; especially those who want to keep their land in their families and therefore need to reduce their Canadian capital gains. Donating a conservation easement to American Friends will decrease the current value of their land, making it less expensive to transfer the property to the next generation. The enhanced tax benefits will greatly improve the overall bottom-line by allowing donors to reduce their US taxes more significantly.

This change will help American Friends, its Canadian partners and the families from the US who are seeking a financially realistic way to retain the natural qualities of their properties. The incentive further leverages philanthropic and government funding to save Canada’s healthy watersheds, wildlife habitat, scenic views, recreational resources and economies based on cottage tourism, hunting and fishing.

Please contact Sandra Tassel, Program Coordinator, for more information about this exciting news. Phone (360) 515-7171 or info@afoclt.org

American Friends of Canadian Conservation and Partners Create New Park in British Columbia at St. John Point

St. John Point, a 64-acre waterfront property on Mayne Island, is going to be a new regional park in the Southern Gulf Islands of British Columbia, thanks to a unique collaboration.

American Friends of Canadian Conservation and Partners Create New Park in British Columbia at St. John Point

St. John Point, a 64-acre waterfront property on Mayne Island, is going to be a new regional park in the Southern Gulf Islands of British Columbia, thanks to a unique collaboration.

At the southwest tip of Mayne Island, St. John Point features 1.3 miles of pristine shoreline complete with beaches, a series of dramatic coastal bluffs connected by meandering trails through mature Douglas Fir forest, a prime remnant of a rare Salish Sea ecological zone, and extensive eelgrass beds. Located near the international border, Mayne Island is served by the BC Ferries system, making it accessible for low-impact, oceanfront recreation.

St. John Point was owned by three brothers, one of whom lives in Canada and two of whom live in the U.S.  They sold this beautiful property to American Friends and the Mayne Island Conservancy Society for a reduced price to make conservation feasible.  The Capital Regional District (CRD), the local regional government, then purchased St. John Point from the Conservancy and American Friends.  The CRD contributed CAD $2 million towards this acquisition; the remainder of the CAD $3.6 million purchase price was donated by individual donors who cherish St. John Point, with help from several Canadian foundations.  American Friends was able to use its unique charitable status in both countries to facilitate this landmark international conservation arrangement

The American brothers sold their 2/3 ownership to American Friends for a price below the appraised market value.  The portion of the appraised value that the American owners donated is tax deductible in the US because American Friends is a U.S. charity. The Canadian brother sold his 1/3 share to the Conservancy, which will provide him with a Canadian tax receipt.

Parks Canada and the Nature Conservancy of Canada recognize St. John Point as a national, provincial and regional conservation priority.  “The CRD recognizes the high recreational and conservation values of the property on Mayne Island,” said David Howe, CRD Southern Gulf Islands Electoral Area Director. “This purchase is an example of working together to ensure the natural areas we enjoy today continue to benefit future generations.”

“The Mayne Island Conservancy Society is thrilled to partner with American Friends and CRD to acquire this wonderful property.  The public funding was matched with generous contributions from Mayne Island residents and visitors,” said Malcolm Inglis, President, Mayne Island Conservancy. “Together we have assured the protection of this magnificent stretch of Coastal Douglas Fir landscape and over 2 km of coastline while also adding to the common wealth of publicly accessible lands for everyone who loves the islands.”

“St. John Point will be a model for other Canadian government agencies and conservation organizations seeking a way to acquire ecologically significant properties owned by Americans. The landowners’ commitment to maintaining the natural character of St. John Point and willingness to donate a substantial percentage of the appraised value made this effort possible,” said Sandra Tassel, Program Coordinator, from American Friends.

American Friends of Canadian Conservation is a U.S. charity created to support protection of Canada’s natural heritage. Its bi-national tax status makes it possible to protect priority lands owned by U.S. taxpayers. Since completing its first transaction in 2011, American Friends and its Canadian partners have conserved nearly 3,000 acres in 25 transactions located in five provinces. For the most recent annual report of American Friends go to https://conservecanada.org/about-us/annual-report.

Help preserve wild spaces in Canada.  To donate or for more information about cross-border conservation or American Friends please contact:
Sandra Tassel, Program Coordinator, info@afoclt.org, 360.515.7171

See beautiful St. John Point and learn about the transaction in these videos.