A donation of land or interest in land is usually the simplest way to arrange outright transfers of title, because no financing or negotiations about price are necessary. The landowner need only obtain approval from the agency or organization to which it will be given, and then deed the land to that recipient.

Donations, by definition, rely on the fact that the landowner is willing to protect his or her land, at the cost of giving it away, without direct financial compensation. However, there may be tax benefits from the gift which help offset some of the loss.

The financial benefits of donating land are obvious. The donor no longer pays the real estate taxes, income taxes are reduced, and the estate is reduced in size so that estate taxes will diminish correspondingly.

In addition, when the recipient of the donation is a government agency or a publicly-supported private charity, the donor can claim an income tax deduction of the market value of the land as determined by a qualified appraiser. In some cases, the landowner may want to donate the land in installments or partial interests over a period of years to maximize the benefit of the deduction.

Landholding agencies review proposed gifts of land carefully, for they are becoming increasingly aware of the financial and management responsibilities that come with the ownership of the land. They must look upon gifts of land in a light of their ability to care for and use the land properly.

Some organizations encourage the establishment of endowment funds when a property donation is made in order to meet the management costs. A donation of funds or a bequest to the agency or organization with whom you are working should be considered to help with future management of the land.