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Application Requirements for Land Trusts with Multiple Corporate Structures

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Approved on April 24, 2008
Amended December 3, 2009
Amended July 16, 2010

Statement of Policy
The Land Trust Accreditation Commission has adopted the following policy to aid in verifying that each accreditation applicant meets the accreditation requirements and to help ensure the integrity of the accreditation seal.

If an organization operates under multiple corporate structures each related entity will be required to provide information at the basic, intermediate or complete level, as determined by the Commission’s executive committee.

Potential applicants operating with multiple corporate structures are encouraged to contact the Commission as early as possible in the accreditation process (preferably before registration) to provide information about the related entities and seek a determination about the level of information required. It may take several weeks for a determination to be made.

Definitions
Related entities are defined as including corporations, partnerships, LLCs, LLPs, or other affiliated entities, whether for profit or nonprofit, supporting or not. This definition does not generally include co-hold relationships, fiscal sponsorships, or community foundation agreements. However, the Commission reserves the right, at its sole discretion, to determine that such a relationship needs additional investigation in order to determine the applicant’s compliance with the indicator practices.

Levels of Related Entity Information
Basic
The basic level of information will generally apply to related entities that do not hold land, do not meet the accreditation eligibility requirements, or are not in the regular business of acquiring and stewarding land. The purpose of the review of these related entities is to evaluate compliance of the primary applicant; related entities supplying basic information will not be awarded accreditation. Specific application requirements are found in the Commission’s Addendum for Multiple Corporations: Basic Level. Project documentation, while not generally supplied at the basic level, may be required at the Commission’s sole discretion.

Intermediate
The intermediate level of information will generally apply to related entities that meet the eligibility requirements and that are supporting organizations or are a wholly controlled subsidiary of the primary applicant. (Generally separate corporations with separate governance will not be considered under the intermediate level.) Each applicant must comply with each accreditation indicator practice, but evidence of shared compliance may be demonstrated through formal agreements as specified in the Commission’s Addendum for Multiple Corporations: Intermediate Level. Accreditation, if awarded, will be awarded jointly and with the provision that the related entities retain substantially the same relationship during the accredited term. Specific application requirements are found in the Commission’s Addendum for Multiple Corporations: Intermediate Level. Project documentation is required, with generally at least two projects evaluated in each category – fee title and conservation easement.

Complete
The complete level of information will generally apply to 1) related entities that are separate (and non-supporting) organizations with substantially the same board as the primary applicant, 2) related entities with a separate board but with only one member, the primary applicant, or 3) other circumstances as determined by the Commission. Each applicant must comply with each accreditation indicator practice, except in limited circumstances where the Commission has determined that shared compliance is acceptable. In this case, if the organizations change the nature of their relationship the Commission may verify each applicant’s compliance with each indicator practice through its compliance confirmation procedures. Specific application requirements are found in the Commission’s Addendum for Multiple Corporations: Complete Level. Project documentation is required, with generally the same level of project documentation required of the related entity as would be required of any applicant.

Fees

Applications from related entities must each pay a fee as described below.
  • Each related entity that provides information at the basic level requires an additional $500 fee at the time of application.
  • Each related entity that provides information at the intermediate level will receive a 25% discount on the total fee that would apply to the related entity (see the Commission’s fee schedule) but with a minimum of $2,500 for each entity.
  • Each related entity that provides information at the complete level will receive a 10% discount on the total fee that would apply to the related entity (see the Commission’s fee schedule) but with a minimum of $2,500 for each entity.
  • A fee of $1,000 per related entity, in addition to the fees above, will apply if an applicant fails to disclose a related entity by the time of pre-application. The Commission reserves the right, depending on when the related entity is disclosed and the degree to which it affects the accreditation review, to require withdrawal or deny an applicant and retain all fees paid to date for failure to disclose.
 
 

Consistency Checks

The Commission uses a variety of tools and processes to ensure consistency in the accreditation review process and in accreditation decisions.

 View a chart that describes the consistency checks in place at the accreditation program.

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