Conservation Fund

CharityWatch's rating of The Conservation Fund also includes the financial activities of Sustainable Conservation Inc. and Natural Capital Investment Fund, Inc., which are included in The Fund's audited combined financial statements for the year ended December 31, 2018. Each entity is a 501(c)(3) public charity. All intercompany accounts and transactions have been eliminated in the audited combined financial statements.

According to The Conservation Fund combined audit of December 31, 2018 (Note 15, Change in Accounting Principle) [$s in thousands, as noted]:

"During 2018, the Fund changed its method of valuing conservation land acquired at acquisition cost, whereas in all prior years conservation land acquired by purchase was recorded at its appraised value when acquired. The new method of accounting for conservation land was adopted to provide a more accurate representation of conservation land acquired for resale and the consideration the Fund would receive upon sale or transfer of conservation land to third parties.

"As noted below, the impact of the change in accounting principle resulted in a reduction to the beginning net assets and conservation land in the amount of $18,699 [thousand]."

It is noted that "Net assets, beginning of year, as previously reported" were $494,716 (thousand), and "Net assets, beginning of year, as adjusted" are $476,017 (thousand).

According to the Sustainable Conservation (SC) 2018 tax filing, SC reports re: Business Transactions Involving Interested Persons, a transaction in the amount of $40,474 involving a board member. The transaction is described as: "The organization received technical consulting services from the Earth Genome, a not-for-profit organization. Steve McCormick, Sustainable Conservation's board member, is also the co-founder of the Earth Genome. Amount of transaction: $40,474" (IRS Form 990, Schedule L, Parts IV & V).

According to The Conservation Fund 2018 tax filing, The Fund reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"All Fund employees, including officers and other key employees, are eligible for discretionary bonuses that are paid annually in the first quarter of the following year. Bonus amounts are based on individual performance and the overall performance of the organization. The aggregate bonus amount for officers is reviewed by the governance committee of the board of directors and the overall compensation of the CEO, including the bonus amount, is established by the governance committee each year."

The Fund reports "Bonus & incentive compensation" payments to 29 individuals in 2018. The three highest amounts reported are (IRS Form 990, Schedule J, Part II):

(1) Lawrence A. Selzer, CEO & President: $167,500, with reported total compensation of $630,242;

(2) Dean H. Cannon, EVP & General Counsel: $100,000, with reported total compensation of $386,592; and

(3) Richard Erdmann, EVP: $98,400, with reported total compensation of $299,502.

The other 26 reported "Bonus & incentive compensation" payments ranged from $53,300 to $15,800, with associated total compensation ranging from $308,464 to $158,197 (IRS Form 990, Schedule J, Part II).