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Land trusts are
nonprofit organization A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
s which own and manage land, and sometimes waters. There are three common types of land trust, distinguished from one another by the ways in which they are legally structured and by the purposes for which they are organized and operated: * A real estate investment trust is a
fiduciary A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exa ...
arrangement whereby one party (the
trustee Trustee (or the holding of a trusteeship) is a legal term which, in its broadest sense, is a synonym for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility to ...
) agrees to own and to manage
real property In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, is land which is the property of some person and all structures (also called improvements or fixtures) integrated with or aff ...
for the benefit of a limited number of beneficiaries. * A community land trust (CLT)  is a private, nonprofit corporation that acquires, manages, and develops land for a variety of purposes, primarily for the production and stewardship of affordable housing, although many CLTs are also engaged in non-residential buildings and uses. * A conservation land trust is a private, non-profit corporation in the US that acquires land or conservation easements for the purpose of limiting commercial development and preserving open space, natural areas, waterways, and/or productive farms and forests. In the United States, the land owned by the
United States government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...
and held in trust for Native American tribes and individuals is sometimes referred to as a land trust. In Australia,
Aboriginal land trust In Australia, an Aboriginal land trust (ALT) is a type of non-profit organisation that holds the freehold title to an area of land on behalf of a community of Aboriginal Australians. The land has been legally granted to a community by the governme ...
s are a type of non-profit organisation that holds the freehold title to an area of land on behalf of a community of Aboriginal and/or Torres Strait Islander people.


History


Ancient example

Possible earliest concept of equity in land held in trust is the depiction of this ancient king ( trustor) which grants property back to its previous owner (
beneficiary A beneficiary (also, in trust law, '' cestui que use'') in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person ...
) during his absence, supported by witness testimony (
trustee Trustee (or the holding of a trusteeship) is a legal term which, in its broadest sense, is a synonym for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility to ...
). In essence and in this case, the king, in place of the later state (trustor and holder of assets at highest position) issues ownership along with past proceeds (
equity Equity may refer to: Finance, accounting and ownership *Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the diff ...
) back to the beneficiary:


Roman era

Land trusts have been around at least since
Roman Roman or Romans most often refers to: * Rome, the capital city of Italy * Ancient Rome, Roman civilization from 8th century BC to 5th century AD *Roman people, the people of ancient Rome *''Epistle to the Romans'', shortened to ''Romans'', a lett ...
times but their clearest history is from the time of
King Henry VIII Henry VIII (28 June 149128 January 1547) was King of England from 22 April 1509 until his death in 1547. Henry is best known for his six marriages, and for his efforts to have his first marriage (to Catherine of Aragon) annulled. His disa ...
in
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...
. At that time, people used land trusts to hide their ownership of land so they would not have to serve in the military or fulfill other obligations of land ownership. For example, an elder uncle would hold his nephew's land so he would not have to join the king's army. To end this, King Henry in 1536 passed the Statute of Uses. The statute declared that if one party held land "for the use of" or in trust for another ("beneficiary"), then legal title was vested in the beneficiary. Obviously, if the statute had been given literal effect, there would be no trust law. Shortly after the statute was enacted, however, English courts declared that the statute only applied if the trust was passive, that is, the trustee didn't do anything but hold the land.


United States

In late 19th-century
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...
, some people figured out that land trusts would be good for buying property for investors to build
skyscraper A skyscraper is a tall continuously habitable building having multiple floors. Modern sources currently define skyscrapers as being at least or in height, though there is no universally accepted definition. Skyscrapers are very tall high-ri ...
s on, and city
aldermen An alderman is a member of a municipal assembly or council in many jurisdictions founded upon English law. The term may be titular, denoting a high-ranking member of a borough or county council, a council member chosen by the elected members the ...
figured they would be a good way to hide their ownership in land since they were forbidden to vote on city building projects when they owned land nearby. Because the law of England, including the Statute of Uses, was present in US law, the question arose whether a land trust would be valid. This question went to the
Illinois Supreme Court The Supreme Court of Illinois is the state supreme court, the highest court of the State of Illinois. The court's authority is granted in Article VI of the current Illinois Constitution, which provides for seven justices elected from the five ...
. It ruled that if a land trust was set up with some minor duty on the trustee (such as to deed the property to the beneficiaries 20 years later), then the trust would not be considered passive and would be valid. Thus, the land trust in America today is often called an "Illinois-type" land trust or "Illinois Land Trust". Land trusts have been actively used in
Illinois Illinois ( ) is a state in the Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolitan areas include, Peoria and Rock ...
for over a hundred years and in recent decades have begun to be used in other states. The declaration of a trust is through a "deed to trustee". If the trust is filed as a public document, it removes all of the asset protection provided by the formation of the land trust. Robert Pless pioneered the use of the land trust that has been used by many firms throughout the United States since the early 1990s.


Types


Community land trusts

Community land trusts trace their conceptual history to England’s Garden Cities, India's Gramdan Movement, and Israel’s cooperative agricultural settlements, the ''
moshavim A moshav ( he, מוֹשָׁב, plural ', lit. ''settlement, village'') is a type of Israeli town or settlement, in particular a type of cooperative agricultural community of individual farms pioneered by the Labour Zionists between 1904 ...
''. As Robert Swann and his co-authors noted in ''The Community Land Trust: A New Model for Land Tenure in America'' (1972): "The ideas behind the community land trust...have historic roots" in the indigenous Americas, in pre-colonial Africa, and in ancient Chinese economic systems. Thus, "the goal is to 'restore' the land trust concept rather than initiate it."


Real estate investment trusts

A real estate investment trust is a
fiduciary A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exa ...
arrangement whereby one party (the
trustee Trustee (or the holding of a trusteeship) is a legal term which, in its broadest sense, is a synonym for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility to ...
) agrees to own and to manage
real property In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, is land which is the property of some person and all structures (also called improvements or fixtures) integrated with or aff ...
for the benefit of a limited number of beneficiaries.Aldrich, R. & Wyerman, J
2005 National Land Trust Census Report
(2006), Land Trust Alliance


Conservation land trusts

Land trusts used primarily for the protection and stewardship of natural areas or for the preservation of productive lands for food or fiber are most commonly called conservation land trusts, but may also be called land conservancies''.  They have been in existence since 1891. However, conservation land trusts were not well known before the 1980s. Conservation communities are examples of such land trusts.


History

The first conservation land trust
The Trustees of Reservations The Trustees of Reservations is a non-profit land conservation and historic preservation organization dedicated to preserving natural and historical places in the Commonwealth of Massachusetts. It is the oldest land conservation nonprofit orga ...
was founded in 1891. In 1976, Ben Emory, new director of the Maine Coast Heritage Trust, had begun to call on Boston lawyer Kingsbury Browne for advice on federal tax issues related to conservation easements. Emory recruited a handful of other land trusts as clients for Browne’s periodic tax letters, and a small communications network of land trusts evolved. When Congress considered new legislation relating to tax deductibility of easements, the Brandywine Conservancy, led by Bill Sellers, convened land trusts using easements in December 1979. Browne invited the under-secretary of the Treasury for tax policy, who brought IRS staff Stephen Small. The land trusts agreed to hire lobbyists and coordinate efforts to influence the legislation, winning expansion of the conservation purposes for which easements would qualify for deductibility. Meanwhile, on the other side of the country, the Trust for Public Land sponsored a small gathering in San Francisco of established and newly forming Western land trusts in February 1978. By 1980, more than 400 local and regional land trusts existed, most still in the North-east, three-fourths with no paid staff, and half with annual budgets under $50,000. The majority of land was protected by fee ownership, but the use of conservation easements was growing. Then influences converged: the geographic spread resulting in isolation of newer land trusts; recognition of the difficulty of influencing vital legislation; and the growing engagement of Kingsbury Browne in land conservation, leading to his desire to learn about land trusts across the country. A movement was about to be born. The number of land trusts steadily increased in the United States, with most forming in the late twentieth century. There are also land trusts working in Canada (e.g.
Nature Conservancy of Canada The Nature Conservancy of Canada (NCC) is a private, non-profit, charitable nature conservation and restoration organization based in Canada. Since its founding in 1962, the organization and its partners have protected of land and water across ...
, Escarpment Biosphere Conservancy, Wildlife Preservation Canada, Edmonton & Area Land Trust, Ecotrust Canada, Georgian Bay Land Trust and Thames Talbot Land Trust), Mexico, and other countries worldwide, in addition to international land trusts like
The Nature Conservancy The Nature Conservancy (TNC) is a global environmental organization headquartered in Arlington, Virginia. it works via affiliates or branches in 79 countries and territories, as well as across every state in the US. Founded in 1951, The Nat ...
and the World Land Trust.


Aims

The goal of conservation trusts is to preserve sensitive natural areas, farmland, ranchland, water sources, cultural resources or notable landmarks. These include enormous international organizations such as
The Nature Conservancy The Nature Conservancy (TNC) is a global environmental organization headquartered in Arlington, Virginia. it works via affiliates or branches in 79 countries and territories, as well as across every state in the US. Founded in 1951, The Nat ...
or World Land Trust, as well as smaller organizations that operate on national, state/provincial, county, and community levels. Conservation trusts often, but not always, target lands adjacent to or within existing protected areas. However, land areas that are particularly valuable in terms of natural or cultural resources or are home to
endangered An endangered species is a species that is very likely to become extinct in the near future, either worldwide or in a particular political jurisdiction. Endangered species may be at risk due to factors such as habitat loss, poaching and in ...
plant or wildlife are good candidates for receiving protection efforts. Land trusts conserve all different types of land. Some protect only farmland or ranchland, others forests, mountains, prairies, deserts, wildlife habitat, cultural resources such as archaeological sites or battlefields, urban parks, scenic corridors, coastlines, wetlands or waterways; it is up to each organization to decide what type of land to protect according to its mission. Some areas have extremely limited public access for the protection of sensitive wildlife, or to allow recovery of damaged
ecosystem An ecosystem (or ecological system) consists of all the organisms and the physical environment with which they interact. These biotic and abiotic components are linked together through nutrient cycles and energy flows. Energy enters the syst ...
s. Many protected areas are under private ownership, which tends to limit access. However, in many cases, land trusts work to eventually open up the land in a limited way to the public for recreation in the form of hunting, hiking, camping, wildlife observation, watersports, or other responsible outdoor activities. This is often with the assistance of community groups or government programs. Some land is also used for sustainable agriculture or
ranching A ranch (from es, rancho/Mexican Spanish) is an area of land, including various structures, given primarily to ranching, the practice of raising grazing livestock such as cattle and sheep. It is a subtype of a farm. These terms are most ofte ...
, or for sustainable logging.Brewer, R. ''Conservancy, The Land Trust Movement in America'' (2003) Lebanon, NH: Dartmouth College Press. While important, these goals can be seen as secondary to protection of the land from development.


Strategies

Many different strategies are used to provide this protection, including outright acquisition of the land by the trust. In other cases, the land will remain in private hands, but the trust will purchase a conservation easement on the property to prevent development, or purchase any mining, logging, drilling, or development rights on the land. Trusts also provide funding to assist like-minded private buyers or government organizations to purchase and protect the land forever. As
non-profit organizations A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
, land trusts rely on donations, grants and public land acquisition programs for operating expenses and for acquiring land and easements. Donors often provide monetary support, but it is common for conservation-minded landowners to donate an easement on their land, or the land itself. Some land trusts also receive funds from government programs to acquire, protect, and manage land. Some trusts can afford to pay employees, but many others depend entirely on volunteers. According to the 2005 National Land Trust Census, 31% of land trusts reported having at least one full-time staff member, 54% are all volunteer, and 15% have only part-time staff. When land is acquired, trusts will sometimes retain ownership of the land in perpetuity, or sell the land to a third party. This third party is often the government, which will usually add the land to an existing protected area, or create a new one entirely. Land trusts were instrumental in the 2004 creation of
Great Sand Dunes National Park Great Sand Dunes National Park and Preserve is an American national park that conserves an area of large sand dunes up to tall on the eastern edge of the San Luis Valley, and an adjacent national preserve in the Sangre de Cristo Range, in south- ...
in
Colorado Colorado (, other variants) is a state in the Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the western edge of the ...
, as well as the expansion of Hawaii Volcanoes National Park by 50% in 2003. Land trusts also sell land to private buyers, usually with a strict conservation easement attached. Land trusts use many different tools in their protection efforts. Land trusts buy or accept donations of land in fee. This means that the landowner will sell fee simple interest to the land trust or will just give the land they own to an organization. Landowners may also sell or donate a conservation easement to a land trust. A landowner that donates a conservation easement to a land trust gives up some of the rights associated with the land. For example, the landowner might give up the right to build additional structures, while retaining the right to grow crops. Future owners also will be bound by the conservation easement's terms. The land trust is responsible for making sure the easement's terms are followed. This is done through monitoring of the land. Conservation easements offer great flexibility. An easement on property containing rare wildlife habitat might prohibit any development, for example, while an easement on a working farm might allow the addition of agricultural structures. An easement may apply to all or a portion of the property, and need not require public access. Each conservation easement is carefully crafted to meet the needs of the landowner while not jeopardizing the conservation values of the land. In between selling land or an easement to a land trust is an option called a bargain sale. A bargain sale is where a landowner sells a property interest to an organization for less than the market price. The amount of value between the market price and the actual sale price is considered a donation to the organization. There are other strategies to conserve land as well. In October 2002,
Property and Environment Research Center The Property and Environment Research Center (PERC), previously known as the Political Economy Research Center, is a free market environmental think tank based in Bozeman, Montana, United States. Established in 1980, PERC is dedicated to original ...
published a report by Dominic P. Parker entitled ''Cost-Effective Strategies for Conserving Private Land''. This paper identified numerous ways for operating land trusts more efficiently, pointing out that conservation easement and other tools for land preservation may be less costly than ownership. Sometimes the various rights associated with land ownership are separable. A preservationist organization may, for instance, buy only the extraction rights on a property with oil or minerals, and then rent those rights to extracters on the organization's terms. The terms might include requirements to protect the environment and pay the organization royalties on materials extracted. Many land trust organizations had already been using these strategies for years when this report was published.


Structure

The
Land Trust Alliance Land Trust Alliance is a nature conservation organization, based in Washington, D.C. The Alliance represents many land trusts across the United States. History Originally formed as the Land Trust Exchange in Boston on February 22, 1982, Allan Sp ...
, formed in 1981, provides technical support to land trusts in the United States. The Alliance performs a National Land Trust Census that keeps track of the land protected by local and regional land trusts. The last Census, conducted in 2003, reported that these trusts have protected almost 9.4 million acres (38,000 km2) of land in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
, double the 4.7 million acres (19,000 km2) recorded in the 1998 survey. Over 5 million acres (20,000 km2) of that was protected by conservation easement in 2003. Although it does not include national or international land trusts in its Census, the LTA estimates another 25 million acres (100,000 km2) in the U.S. have been protected by those organizations. The largest amount of land protected by local and regional trusts is in the
Northeast The points of the compass are a set of horizontal, radially arrayed compass directions (or azimuths) used in navigation and cartography. A compass rose is primarily composed of four cardinal directions—north, east, south, and west—each sep ...
with 2.9 million acres (12,000 km2), while the fastest growing region between 1998 and 2003 was the Pacific (consisting of
California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
,
Nevada Nevada ( ; ) is a U.S. state, state in the Western United States, Western region of the United States. It is bordered by Oregon to the northwest, Idaho to the northeast, California to the west, Arizona to the southeast, and Utah to the east. N ...
, and
Hawaii Hawaii ( ; haw, Hawaii or ) is a state in the Western United States, located in the Pacific Ocean about from the U.S. mainland. It is the only U.S. state outside North America, the only state that is an archipelago, and the only stat ...
), with protected land increasing 147% to 1.5 million acres (6,100 km2) in 2003.


Other types

In the United States; approximately (as of 2008) of land are owned by the
United States government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...
and held in trust for Native American tribes and individuals. In Australia,
Aboriginal land trust In Australia, an Aboriginal land trust (ALT) is a type of non-profit organisation that holds the freehold title to an area of land on behalf of a community of Aboriginal Australians. The land has been legally granted to a community by the governme ...
s are a type of non-profit organisation that holds the freehold title to an area of land on behalf of a community of Aboriginal and/or Torres Strait Islander people.


See also

* Commune * Conservation community *
Cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-contro ...
*
Green belt A green belt is a policy and land-use zone designation used in land-use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighboring urban areas. Similar concepts are greenways or green wedges, which h ...


References

{{DEFAULTSORT:Land Trust Protected areas