Options for Creating a Land Interest Holding Entity

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Foundation. The sole purpases of this entity would be to hald interests in land and the other functions of the LIHE. This entity would be a tax-exempt 501(c)(3) or 509 (a)(3) charity that is not a private faundatian, because it would be a supporting arganization of ail four program signataries (i_e., Colorado, Nebraska, Wyoming and the Department of the Interior) and the Nebraska Community Foundatian. The board of thzs new entity wouId be appointed by the Nebraska Community Foundatian, with the appraval of the four program signataries. A supporting foundation under the Nebraska Community Foundation umbrella couid be an efficient waY to utilize the infrastructure oE the Community Foundation, create an entity tailored to the land holding objectives fox the LIHE and maintain full accountability to the signatories. Advantages 1. Because the Nebraska Community Foundation is alxeady serving as a conduit for the funds to be used to purchase land interests, its control over the new entity eliminates the introduction of a new player. The new entity would be bound by the same agreements as the Nebraska Community Foundation. 2. Should be as dependable, durable and accountable as the Nebraska Comrnunitv Faundation. J 3. 8ecause the Nebraska Community Foundation is an established 1ocal, independent charitable institution in Nebraska without its awn conservation agenda, it is a relatively neutral stakeholder that should be relatively more acceptable to Nebraska landowners. 4. As a single purpose entity, it could be desi-ned tvith whatever governance and structural elements seem best to assure the goals of the program. 5. Can accept charitable contributions and hold conservation easements. 6. As a separate legal entity, it limits the liability to all concerned with respect to ownership of the interests to be purchased. 7. Can rely on existing Nebraska Community Foundation prQfessional support for legal assistance, administration, accounting and tax return preparation. Disaduantages 1. Requires creation of a new entity. 2. New entity requires a new board and staff or contractars to carry out functions_ 3. Supporting foundations (509 (a) (3) organizations under the IR5 code) can be compiicated and are not well known. Conservation Partners, Inc. P. 11