Abstract
Charitable organizations may occasionally be tempted to terminate conservation easements to appease donors, landowners, or prominent members of the community. Directors may rubber-stamp termination proposals out of a desire to be cooperative and supportive team players. This tendency to abdicate the monitoring role becomes more pronounced if board members lack full information about the terms of the transaction, especially if conflicts of interest are involved. Boards that take governance seriously will understand that termination decisions must be consistent with state law fiduciary duties of care, obedience, and loyalty. Because it is quite possible that a state court will determine that a conservation easement may be terminated only upon a judicial determination that accomplishment of the easement’s purpose is impossible or impracticable, authorizing termination of an easement without court approval is a reckless move. Compounding the problem, the transaction might attract unwelcome attention from the IRS, the donor’s family, or the public at large, causing the charity to suffer significant damage even if it prevails in litigation or reaches a settlement. There is a strong argument that the charitable board that terminates or swaps a conservation easement without judicial approval has abdicated its responsibilities to the charity.
Recommended Citation
Leslie, Melanie B.
(2013)
"Conservation Easements As Charitable Property: Fiduciary Duties and the Limits of Charitable Self-Regulation,"
Utah Law Review: Vol. 2013:
No.
3, Article 7.
Available at:
https://dc.law.utah.edu/ulr/vol2013/iss3/7