Management Agreements (cont.)
Landowners seeking income from the sale of their property and benefits from tax deductions associated with a charitable contribution often use the bargain sale option.  The donor’s intent to contribute the difference between the fair market value and the bargain sale price of the property should be expressed in writing, preferably in the sale agreement.  As with all types of land acquisitions, there should be a qualified appraisal.  In some circumstances, the bargain sale is the only affordable way for a land trust or other conservation buyer to permanently protect the natural and cultural resources of a particular property.

Case Study: bargain sale
The Jacobs family owned 80 acres in the saguaro-studded slopes of the Tucson Mountains for many years.  Interested in protecting the open space afforded by the land, but more concerned with the need to sell the property, the Jacobs family decided to negotiate a bargain sale of the 80 acres to a conservation buyer.  The conservation buyer purchased the property at a value well below fair market value, thus entitling the landowner for potentially significant income tax benefits, as well as avoiding capital gains taxes. The property is now protected in perpetuity as open space.