sem-1: preparing for renewal october 8, 2015 jennifer brady-connor, program manager valerie roof,...
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SEM-1: Preparing for RenewalSEM-1: Preparing for Renewal
October 8, 2015Jennifer Brady-Connor, Program Manager
Valerie Roof, Review Specialist
Who’s here….?Who’s here….?
Workshop ObjectivesWorkshop Objectives
• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
Addressing your Addressing your questions….questions….
• We received some in advance• There will be other opportunities• Ask clarifying questions as needed• We’ll get to all of them!
Workshop ObjectivesWorkshop Objectives
• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
• Sets Land Trust Standards and Practices
• Sets indicator practices
• Provides education
• Fundraises
• Verifies implementation of Land Trust Standards and Practices
• Develops accreditation application and review process
• Makes accreditation decisions
Land Trust Standards Land Trust Standards and Practicesand Practices
• 12 standards, 88 practices• The ethical and technical
guidelines for the responsible operation of a land trust
• Alliance members adopt S&P
What is Accreditation?What is Accreditation?• Sample of Land Trust
Standards and Practices • Independent
verification of 26 indicator practices
• Voluntary• First-time and renewal
Land Trust Accreditation Land Trust Accreditation CommissionCommission
• Independent program of the Land Trust Alliance
• 19 diverse volunteer commissioners
• 7 staff
Goals of theGoals of theAccreditation ProgramAccreditation Program
• Build and recognize strong land trusts
• Foster public trust• Help ensure
permanent land protection
Purpose of RenewalPurpose of Renewal• Foster continued implementation of
Land Trust Standards and Practices
• Reflect best practices
• Confirm compliance with current requirements
• Verify action on expectations for improvement
• Identify and evaluate major changes in accredited land trusts
Accreditation CycleAccreditation Cycle
Preparation
• What is the same?
• What is different?
Overview of Renewal ProcessOverview of Renewal Process
What is the Same as First-What is the Same as First-Time?Time?
• Questionnaire, Attachments/Statements• Schedule of Dedicated and Restricted Funds• Stakeholder notification• Land Conservation Project List• Project Documentation Checklist• Review by team of staff and commissioners
What is Different?What is Different?
• Slots are reserved/assigned
• Fewer attachments• No more binders; all
online
Renewal of AccreditationRenewal of AccreditationProcess is Different
First-Time Process Renewal Process
Pre-app screening No pre-app screening
Completeness check No completeness check
Applicant call to gather more information and determine next steps
Applicant call (only if requested; only to explain reason behind info requests)
Follow-up Request Additional Information Request (AIR)
Commission Decision (Accredit, Table, Not Accredit)
Commission Decision (Accredit, Conditionally Accredit, or Not Accredit) No Table decision
RenewalsRenewalsRequirements are Different
First-Time Requirements Renewal Requirements
Current practice/two years Current practice/five years (since last applied)
Expectations for Improvement (EFIs) common
EFIs uncommon – will require corrective action first
Must meet key elements/first-time requirements (as described in Requirements Manual)
Must also meet additional elements/at renewal requirements (as described in Requirements Manual)
User ManualUser Manualhttp://landtrust.civicore.com
General Tips and PointersGeneral Tips and Pointers• Can complete the questionnaire in more than one
sitting
• One user name/password; more than one can be logged in at once
• Can revise questionnaire at any time prior to submitting final application
• Review entire application prior to submitting to ensure it is accurate representation
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
Registration EmailRegistration Email
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
Land Conservation Project ListLand Conservation Project List
Land Conservation Project ListLand Conservation Project List
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
ApplicationApplication• Application questionnaire• Supporting documents
– Statements– Evidence
• Project documentation• Fee (based on operating
expenses – 2015 ranges from $1,560 to $10,820)
ApplicationApplication
ApplicationApplication
•Project Documentation– Selection– When – Checklist– Other verification items
ApplicationApplication
Awareness and disclosure is the best policy•If a qualified “yes”…explain•If you aren’t sure…explain•If you cannot…explain
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
Application ReviewApplication Review• Review team (staff and commissioners)
evaluates compliance with all 26 indicator practices by considering:– Application & all materials– Public comments– Research
Application ReviewApplication Review• Meet requirements as outlined
in the Requirements Manual– Additional information– Corrective action
• Have evidence any expectations for improvement were met
• Attestations confirmed
Then What?Then What?
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
Additional Information RequestAdditional Information Request
• AIR with document requests or corrective action
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
• Review materials received to date
• Recommendation to Commission
Final ReviewFinal Review
• Review team considers:– Current practice: throughout
accreditation term– Past practice (limited): signatures
on baselines, or an attempt to get– Flexible: range of approaches– Practical: fosters continuous
improvement
Review Team RecommendationReview Team Recommendation
Decision by Full CommissionDecision by Full Commission• Accreditation
– Renewed for 5-year period
– (Maybe) Expectations for improvement
– Commendations• Conditional Accreditation
– Renewed, with formal check-in
• Not Renewed
SubmitApplication
& Fee
SubmitApplication
& Fee
Submit Pre-Application
Submit Pre-Application Receive Project
Selection, Fee and Attestation Verification
Request
Receive Login & Register
Commission Decision
Receive Additional Information
Request (AIR)
Submit Additional
Information
Submit Additional
Information
Example Accreditation Timeline: Applicants for Renewal
Commission review
Commission review
As of June 3, 2014
~9 mo. prior to app due; register within 2 mos. of
pre-app due date
~5 wks. prior to app due
~1-4 months after app due
~3 mo. prior to app due
On or before app due date
~3 months after AIR received
Total elapsed time from application due date to Commission decision: 8-10 months
~8-10 months after application
submitted
Commission review
Commission review
How Long Does It Take?How Long Does It Take?Generally:• Final decision ~10 months from
application due date• Approximately 15 months from
registration due date
Questions?Questions?
Workshop ObjectivesWorkshop Objectives
• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
You are in Good CompanyYou are in Good Company• 38% of eligible land
trusts are accredited.• Accredited land
trusts hold more than 76% of 20 million acres currently held by land trusts.
• Process Improvements– Reduced application information requested
– Reduced project documentation
– Improved the electronic application process
– Revised the User Manual
– Reduced length of process
– Increased outreach to applicants
– Improved website and access to information
You Told Us, We ListenedYou Told Us, We Listened
More ChangesMore Changes• Revised requirements
– Simplified and clarified
– Reduced the number of requirements by approximately 30%
ResultResult
Why Apply for Renewal?Why Apply for Renewal?
Internal ValueInternal Value• Strengthened operations and made us more
effective– Streamlined procedures
– Created organizational structures
• Improved our ability to preserve and/or steward land or easements– Unaccredited land trusts are over 20% more likely to have
a legal challenge per parcel and pay over 50% more in external costs per challenge than accredited land trusts (Source: Terrafirma actuarial data)
External ValueExternal Value• Distinguished our land trust with private
donors and/or increased donor support• Distinguished our land trust with public agency
partners and/or increased access to public funds
• Increased recognition of our land trust among other land trusts
“Whew! It is a demanding process that helps get your organization in order and provides the credibility we all need to be able to show our constituents.”
• 97%
• 100%
Workshop ObjectivesWorkshop Objectives• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
New in 2015: New in 2015: History of History of ChangesChanges
First-time Accreditation
First Renewal of Accreditation
Second and Subsequent Renewal
of Accreditation
Key Elements
Current workWork over
five-year termWork over
five-year termAt-first-time Contents
Additional Elements
Current work Current workWork over
five-year termAt-renewal Contents
• Consistency• Fair but flexible• All must demonstrate
compliance• No one-size-fits all• Recognize diversity
Commission’s Review Commission’s Review ApproachApproach
Three Aspects of the Three Aspects of the RequirementsRequirements
• Meet the requirement
• Document that you met the requirement
• Communicate that you met the requirement
Expectations for Expectations for Improvement (EFIs)Improvement (EFIs)
• What have we done? (statement)
• How will the Commission know? (documentation)
Have you Adequately Have you Adequately Addressed your EFIs?Addressed your EFIs?
• Have met consistently during 5-year term• Just met for first time• Have not met• Requirement no longer applicable• Have not had an opportunity to address issue
Practice 2B. Nonprofit Incorporation and Bylaws
Expectation that X will implement a process for periodically reviewing and updating its bylaws and will keep documentation of its review.
ExampleExample
How to Meet and DocumentHow to Meet and Document• Might address by:
o Establishing a committee or assigning a board member the task of reviewing the bylaws
• Might document by providing: oMinutes of the meeting(s) where the review
was discussedo Revised bylaws with date of adoption
ExamplesExamples10B. Appraisals•Expectation that X will only sign the Form 8283 when it is complete and is an accurate representation of the gift and when the appraisal supporting the Form 8283 meets basic Treasury Regulation requirements for a qualified appraisal as specified in the Commission’s Requirements Manual.
ExamplesExamples11A. Funding Easement Stewardship •Expectation that X will continue to implement its fundraising plan in order to achieve its goals for increasing its easement stewardship and defense fund so that it will have levels that are in keeping with the Commission’s Guidance Document [Requirements Manual) for practice 11A before it applies for renewal of accreditation.
ExamplesExamples
9J. Purchasing Land•Expectation that X will, when buying interests in real property, abide by the appraisal requirements described in the Commission’s Guidance Document [Requirements Manual] for obtaining appraisals in compliance with practice 9J.
ExamplesExamples12C. Land Management•Expectation that X will have completed at least a management summary for every property it holds in fee at the time it acquires a property and until such time as it completes a formal management plan.
What You Wanted to Know What You Wanted to Know More AboutMore About
• Recordkeeping (9G)
• Funding Easement Stewardship (11A)
• Funding Land Stewardship (12A)
• Dealing with Conflicts of Interest (4A)
• Baseline Documentation Reports (11B)
• Other
9G Recordkeeping9G Recordkeeping• Board-adopted policy• Separate storage for originals and duplicates• Originals protected from daily use and
reasonably secure from fire, floods or other foreseeable hazards
• Originals only electronic• Originals in homes
Common Application ProblemsCommon Application Problems
Changes in RequirementsChanges in Requirements
Irreplaceable Document
Original Required
Duplicate Required
Appraisals yes no
Forms 8283 yes no
Conservation easement monitoring reports yes no
Fee property inspection records yes no
Contracts and leases relative to long-term land management activities
yes no
9G Recordkeeping9G Recordkeeping• Examples of items you will need to complete your
application– Conflicts of Interest
– Title Investigation
– Appraisals
– Above Appraised Value Purchases
– Baseline Documentation Reports
– Conservation Easement Violations
– Conservation Easement Amendments
11A. Funding Easement 11A. Funding Easement StewardshipStewardship
Number of Conservation Easements
Defense Funding Stewardship Funding
1-15 conservation easements
$50,000 A minimum of $3,500 per conservation easement
16+ conservation easements
$50,000 for first 15 conservation easements, plus a minimum of $1,500 for each additional conservation easement
Do Not Meet the Required Do Not Meet the Required Minimum for StewardshipMinimum for Stewardship
• Make significant progress toward reaching goal• Describe steps taken and progress• Why unable to meet requirement• How will meet requirement
12A. Funding Land 12A. Funding Land StewardshipStewardship
1. Dedicated fund(s)
2. A. Dedicated funds to cover at least emergency fee land management needs, issues related to title disputes and legal defense or enforcement costs and
B. Annual operating funds for ongoing fee land stewardship operating expenses
DOLLAR VALUE AND TYPE(S) OF RESTRICTIONS NOTES*
UR/no BD UR/BD TR PR TOTAL
$0 $25,000 $800,000 $0 $825,000Combined fund for easements and fee property; board has designated $25,000 for fee land emergency needs.
$0 $0 $0 $0 $0
See above
$0 $25,000 $800,000 $0 $825,000
Schedule of Dedicated and Schedule of Dedicated and Restricted FundsRestricted Funds
New Alliance Defense Calculator
4A. Conflict of Interest4A. Conflict of InterestOne of the board member’s sisters wishes to donate a conservation easement to your organization.
• What documentation should you retain to demonstrate there was no private inurement or impermissible private benefit?
• What documentation should you retain to demonstrate that the insider did not influence the decision?
11B. Baseline Documentation 11B. Baseline Documentation ReportsReports
Do each of your organization’s baseline documentation reports contain all of the following required elements?•Date of completion.
•Documentation of the conservation values and public benefits.
•Documentation of existing conditions that relates to the easement’s restrictions and reserved rights.
•Dated signatures of the landowner and land trust acknowledging that both attest to the accuracy of the information contained in the report.
•Information on the location of the easement.
•Property description.
They Don’t; Now What?They Don’t; Now What?Scenario 1: Relatively recent donation, original owner •Ask landowner to sign an acknowledgement that the original baseline still reflects the condition at the time of donation
Scenario 2: Older baseline, new owner •Create a current conditions report or supplemental baseline report
– Same standards for creating and authenticating – Can update descriptions of property, maps and
photos•Ask the new owner to sign it
They Don’t; Now What?They Don’t; Now What?
They Don’t; Now What?They Don’t; Now What?Scenario 3: Landowner refuses to sign •Keep documentation of attempt to secure the signatures
– Correspondence, emails or internal notes – Chart to track related activities and response
Other Questions You AskedOther Questions You Asked• NRCS Caps• 11B baselines• 12C management plans• Amendments
What We Want You to Know What We Want You to Know AboutAbout
Corrective action AIR EFI
10B Notification to landowners about tax requirements
60% 16%
5A Contemporaneous acknowledgment letter 27% 10%
4A Conflict of interest policy 22% N/A
Notifying Potential Donors Notifying Potential Donors (10B)(10B)
The organization notifies potential land or easement donors, including those knowingly engaging in a bargain sale transaction, of the elements listed in the Requirements Manual.
Landowner Notification ContentsLandowner Notification Contents• Donor is responsible for appraisal
• Internal Revenue Code requires qualified appraisal
• Notification of explicit timing requirements
• Donor should use qualified appraiser who follows Uniform Standards of Professional Appraisal Practice
• The land trust will request copy of appraisal
• The land trust will not knowingly participate in transaction if there are concerns about tax deduction
– Will not sign is NOT equivalent
Contemporaneous Written Contemporaneous Written Acknowledgement (5A)Acknowledgement (5A)
For gifts greater than $250, including gifts of land and conservation easements (including bargain sale transactions), the organization issues a contemporaneous written gift acknowledgement letter compliant with the Internal Revenue Code (§170(f)(8)) and the Treasury Department Regulations (§1.170A-13).
Gift Acknowledgement Letter ContentsGift Acknowledgement Letter Contents• Name of organization• Date of donation• Amount of cash contribution• Description of noncash contribution• One of the following:
– Statement of “no goods and services”
– Description and estimate of value
Required PoliciesRequired Policies• 3F Delegation of Authority (if applicable)• 4A Conflict of Interest• 9G Recordkeeping• 11E Enforcement of Easements• 11I Amendment
Workshop ObjectivesWorkshop Objectives
• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
What if…you just didn’t do it?What if…you just didn’t do it?
• Maybe you forgot• Maybe you just don’t know (there is no
documentation and/or someone left)• Maybe you disagreed with the requirement • Maybe there was a good reason
[Renewal Report/I&R]
What if…I just can’t get buy in?What if…I just can’t get buy in?
• How are you planning to meet all of these needs?
What if…one of these What if…one of these scenarios apply?scenarios apply?
• Merger• Accepted transfer of land or easements• Related entity (multiple corporations)
What if…What if…
• What else is on your mind?
Workshop ObjectivesWorkshop Objectives• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
How to Best PrepareHow to Best Prepare1. Conduct an organizational assessment and
identify big hurdles– Baseline Documentation Reports– Conservation Easement Monitoring– Conservation Easement Defense Funding– Management Plans– Fee Property Inspections– Recordkeeping
How to Best PrepareHow to Best Prepare
• Review (re-review) any EFIs issued at time of accreditation– How will (did) you address each one?– How will (did) you document each one?
How to Best PrepareHow to Best PrepareTest yourself
• Read the Requirements Manual
• Read the application
• Identify gaps•Build an accreditation team
How to Best PrepareHow to Best PrepareWorkplanning •What is working/worked for your land trust?•What advice do you have to offer others?
Change Happens!Change Happens!Annually•Review Requirements Manual•Review your policies/procedures/practices
– Confirm policies/procedures/practices meet requirements
– Confirm implementation remains documented
Change Happens!Change Happens!Periodically•Conduct assessment against all Land Trust Standards and Practices
– Within three years of renewal application– Good time to check in on EFIs– Address any concerns– Celebrate successes!
Change Happens!Change Happens!Always•Read correspondence from Commission; disseminate as needed•Ensure that accreditation contact is up-to-date with Commission•Act in accordance with the Accreditation Agreement and Board Resolution
Accreditation ToolsAccreditation Tools• Applicant Handbook• Requirements Manual• Webinars• Factsheets/Policies• Application Materials• Commission staff• Alliance
• Eligibility requirements
• Application process• Mechanics of
completing the pre-application and application
• Commission policies
• Elements of evaluation for each indicator practices
• Alliance resources for more information
Other ToolsOther Tools• Factsheets
– Benefits of Accreditation
http://www.landtrustaccreditation.org/tips-and-tools/fact-sheets
• Webinars– Pre-application
– Application
• Commission Staff
http://www.landtrustaccreditation.org/tips-and-tools/training
Land Trust Alliance ToolsLand Trust Alliance Tools• The Learning Center:
http://learningcenter.lta.org• Pathways to Accreditation• Standards and Practices
Curriculum• Training, conferences,
online learning and webinars
• Alliance staff
Workshop ObjectivesWorkshop Objectives• Background & Renewal Process
• Renewal is New and Improved
• Using the Requirements Manual
• Dealing with the “what ifs”
• Workplanning
• Wrap up
Benefits of AccreditationBenefits of Accreditation• Stronger organizations• Better prepared for perpetuity• Incentives (Federal, State, Private)• Donor support• Stronger land trust community
Questions?Questions?