Benefits of Easements

Conservation easements offer lasting benefits that go well beyond preserving beautiful scenery. They provide tangible environmental, community, and financial advantages that strengthen a property’s role in the community for generations. An easement may affect how lenders value a property. For instance, banks follow federal loan-to-value (LTV) standards when they assess collateral—knowing how easements might change a property’s assessed value can be important if you’re considering future financing.

Environmental Benefits

• Habitat Protection – Safeguards forests, wetlands, and open spaces that provide food, shelter, and migration corridors for wildlife.

• Water Quality & Source Water Protection – Maintains natural buffers along streams, wetlands, and headwater areas, filtering runoff before it reaches waterways and helping protect drinking water supplies.

• Climate Resilience – Conserves tree cover and soil health, helping absorb carbon and moderate local temperatures.

Community Benefits

• Scenic Preservation – Protects views that define the community’s character.

• Education & Recreation – Creates opportunities for nature study, cultural interpretation, and outdoor activities where compatible.

• Cultural & Historic Value – Preserves landscapes tied to the area’s heritage, reinforcing a sense of place.

Financial & Organizational Benefits

Because easements are permanent, people often wonder how they affect property value, financing, or donor support. Here are some common questions and what the research shows.

• • Predictable Stewardship Framework – An easement ensures the land remains dedicated to its conservation purpose even if ownership changes hands. The property can still be sold, but the conservation terms remain in place.

  • Potential Funding Opportunities – Easements can open doors to grants and technical assistance not otherwise available, particularly through programs like DCNR’s Community Conservation Partnerships Program (C2P2).

  • Donor Confidence – While a few donors may object, long-term experience shows that these gaps are often filled—or exceeded—by others who value the transparency, permanence, and mission alignment an easement represents. By removing all doubt about the land’s future, an easement reassures donors that the organization will never trade conservation priorities for short-term gain. This confidence can inspire larger, multi-year, and even legacy gifts, and can broaden the donor base to include foundations and individuals who prioritize permanent land protection (WeConservePA, Land Trust Alliance).

Addressing the “Asset Value” Concern

• • It’s an accounting adjustment, not a loss of cash. In nonprofit financial statements, unrestricted land is often recorded at its full market potential—including possible development value—even if there is no intent to develop it. An easement removes certain development rights, so the appraised accounting value is adjusted downward (WeConservePA). But land value on paper is not the same as operating cash. This change does not reduce actual funds, income, or the ability to carry out programs (National Council of Nonprofits).

  • Collateral realities are similar before and after. Even without an easement, banks rarely lend at “full development value.” Under the FDIC/OCC Interagency Guidelines, typical supervisory loan-to-value (LTV) limits are 65% for raw land, 75% for land development, 80% for commercial or multifamily construction, and 85% for 1-to-4 family residential or improved property (FDIC/OCC Interagency Guidelines). These limits already discount land’s borrowing power well below its theoretical market value. If collateral is valued based on development potential, foreclosure could lead to the land being developed to recover the loan. Placing an easement changes the legal use baseline before any loan is made, which means the bank’s valuation and foreclosure options are based on the property’s restricted use—not hypothetical full development. This can reduce the risk that conservation land is converted if a borrower defaults (FDIC/OCC Interagency Guidelines).

  • Donor confidence can grow. While some individual donors may initially oppose an easement, the long-term record shows that many nonprofits experience equal or greater total giving after formalizing land protection. An easement can strengthen credibility, attract new supporters, and foster trust among community members who prefer to invest in organizations with clearly protected assets and a transparent stewardship plan (WeConservePA, Land Trust Alliance).

  • Long-term stability can improve. Easements prevent mission drift by removing the option to convert conservation land into cash through development, reinforcing focus on core purposes (Land Trust Alliance).

Proven Track Record

Across Pennsylvania and nationwide, nonprofit landowners — including historic associations, conservancies, and community groups — have placed significant land under easement without harming their financial stability. For example, Natural Lands holds over 22,000 acres in conservation easements across Pennsylvania (Wikipedia). In many cases, formal protection has improved community trust and attracted new supporters (WeConservePA).

These experiences elsewhere show that permanent land protection can align financial stability with conservation goals — a lesson that applies equally to communities like Mount Gretna.