From
http://gristmill.grist.org/story/2005/6/9/201452/0473Land trusts
Posted by David Roberts at 8:14 PM on 09 Jun 2005
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One of the most successful environmental movements of the last fifty years is about to change the way it does business. And if it doesn't do it on its own, the government will step in and force it to change.
That's the headline on the recent investigation of the nation's land trusts by the Senate Finance Committee.
Wednesday, the Finance Committee held hearings ostensibly aimed at tightening the tax code on the use of conservation easements, which have become a prime tool in conserving land from development. It's also become a prime tool for evading taxes. The Finance Committee began its investigation three years ago after a series of embarrassing articles in the Washington Post about the practices of the country's biggest trust, The Nature Conservancy.
The staff released the results of its investigation Tuesday, outlining a series of abuses by TNC, including:
-A pattern of dealings with insiders that gave preferential treatment on land deals;
-a pattern of dealings with the companies of board members (PDF);
-selling emissions credits, including a $10 million deal with General Motors while GM's chairman John Smith served on TNC's board;
-selling emissions credits that it may or may not have even owned, essentially furthering its own environmental goals (buying land) at the expense of another environmental goal (reducing greenhouse gases); and
-allowing oil and gas drilling on one of three known habitats of the Attwater Prairie chicken, bumbling its way through the deal so that it ended up in court, accused of cheating one of its partners, all while pocketing over $8 million in royalties.
The report paints a picture of an organization that's gotten so big, and so successful, it lost sight of why it was formed in the first place. To its credit, TNC leaders know they need to make some big changes, and appear to have done so, although there are still questions about whether the new safeguards are as effective as they can be. Also the report breaks out just how wealthy TNC has become. At the end of fiscal year 2004, it had gross receipts of $2.5 billion with revenues of $732 million.
more at link above.