Initial Contact
Initial contact between potential easement donors and Hui `Aina o Hana often result from public relations activities or referrals from third parties. Initial meetings are held with the potential donor to discuss the location characteristics of the land to be gifted.Authorization by the Board
The Board of Governors evaluates the merits of the potential donations. If the subject property satisfies the criteria for conservation projects, the Board will authorize an appropriate representative of the Hui to a) negotiate with the prospective donor and b) initiate a "baseline inventory study" of the property.Baseline Inventory Study
The purpose of the "baseline inventory study" is to assess and document the current condition of the property including its size, use, and resources. This information enables the Board to a) evaluate the public benefit of acquiring the land, b) identify and document the significant features of the property to be protected, and c) assess its future management needs.Environmental Audit
The Board of Governors may also require that a gift of land be subject to an independent environmental audit showing the premises to be free of contamination from toxic and/or hazardous substances. In such cases, the Hui will request that the donor retain a qualified Environmental Engineer to conduct the site assessment.Title Search
The purposes of the "title search" is to a) furnish legal property description and b) identify encumbrances on the property such as underlying mortgages, etc. The prospective donor can assist the Hui by providing copies of existing title insurance policies, title certificates and/or title reports.DRAFT Management Plan
This "DRAFT Management Plan" is prepared by the Hui staff. The Plan provides the Board with an initial analysis of the long-term management costs associated with the protection of the property.Appraisal
Hui `Aina o Hana encourages all donors to obtain a competent appraisal of the property by a qualified appraiser. The Internal Revenue Service has recently enacted regulations which penalize donors and appraisers for the over-valuation of gifts. If is important to note that the donor must attach a copy of the "appraisal summary" (signed and dated by a qualified appraiser and the Hui) to their tax return.Deed of Conveyance
The Deed must be reviewed and approved by the Board of Governors before it is accepted. Once accepted, the Deed will be recorded with the State of Hawai`i Bureau of Conveyances. Other forms may have to be completed for tax purposes.The gift of land represents a major commitment for any landowner. Although the tax benefits may be a strong incentive for such a gift, few donors make such a committment without the desire to assure the protection the land in question. CONTRIBUTIONS TO THE HUI
FOR MANAGEMENT PURPOSESBy accepting a gift of land, the Hui assumes the legal responsibilities of ownership and management. While the donor has made a gift of great significance, the Hui has, in a sense, assumed a liability forever. In order to assist the Hui in fulfilling its present and future responsibilities, tax-deductible contributions must be raised with each easement gift.
Although the amount of support necessary for the Hui to effectively acquire and manage land will vary from property to property, the following cost are constant:
- Overhead Cost: Office/program expenses, personnel
- Transaction Cost: Documents, legal fees, negotiations, recording fees, title search
- Property Taxes: Property taxes often are due on gifted lands for up to one year after the gift
- Management Cost: Baseline inventory, field visits, liability insurance, other maintance cost
For each gift of land, the Board of Governors request that a donation to the Endowment Fund be made to help meet these expenses.
