[Click here to download a PDF of this letter]

September 29, 2023

Dear Chairwoman Stabenow, Chairman Thompson, and Ranking Members Boozman and Scott,

The undersigned organizations appreciate the work of Congress in establishing the Good Neighbor Authority (GNA) which has allowed state forestry agencies, consulting foresters, and partners, working with the USDA Forest Service, to contribute to the restoration of federal forests on a scale never before realized. GNA allows the Forest Service to enter into agreements of up to ten years with state forestry agencies, Tribes, and counties to implement this critically important management work on national forests when the Forest Service is unable to do the work alone.

GNA has proven to be a tremendous success. Since GNA was first authorized by Congress with the 2014 Farm Bill, at least 38 states, 16 Tribes, and 15 counties have broken ground on over 380 GNA projects covering watershed restoration, vegetation management, wildlife habitat improvement, soil and water improvement, as well as reforestation and support for federal tree nurseries and seed orchards. Even with this level of success, more can be done to unlock the full potential of GNA as a cross-boundary restoration tool.

The intent of GNA is to benefit federal lands by increasing the pace and scale of restoration through partnership agreements with states, Tribes, and counties on federal forest restoration and management projects, facilitating critical work to improve species habitat, enhance watersheds, reduce hazardous fuels and mitigate wildfire risks. The 2018 Farm Bill removed the ability for states to further invest GNA project revenues for restoration services on non-federal lands within agreed upon GNA project boundaries. Adjacent state, tribal, county, private, and other land that is essential to the health and productivity of national forests can no longer be restored as a comprehensive landscape with revenues generated from GNA projects as a result of the limitations of the 2018 Farm Bill language.

Additionally, we would like to call your attention to the fact that without an extension of the 2018 Farm Bill authority which authorized states to retain GNA project revenue (P.L. 115-334, §8624), new GNA agreements and GNA agreement modifications executed after October 1st, 2023 will not be able to collect or expend GNA project revenues. Funding additional restoration with revenue is an important mechanism within GNA and is critical to ensure solvency of states and other entities such as Tribes and counties if they are provided the authority for retaining GNA project revenue. Any lapse in authorization, which will occur without a Farm Bill extension, could have cascading effects and lead to longer delays in project implementation.

GNA has been dedicated to serving the people of Michigan by providing increased timber production from the three national forests within the state. GNA project revenues generated from these efforts have provided the funding to enable other successful restoration projects within each of the national forests. These projects have focused on numerous activities, including invasive species mitigation and eradication, which has been, and will continue to be a major focus of the GNA program in Michigan.

Unfortunately, the way project revenues generated from the GNA program are being directed by language in the 2018 Farm Bill, these invasive species projects must stop at federal property boundaries when GNA project revenues are funding the work. This makes efforts to control and eradicate invasive species less effective in terms of cost and outcomes because the invasive species will continue to spread onto neighboring lands and in some instances enables more rapid spread. Examples include hemlock woolly adelgid and oak wilt control where treatment solely on federal lands resulted in the spread of invasive species from federal lands and onto neighboring lands. This is the opposite of being a “good neighbor”. Costs continue to accrue when the full infestation cannot be treated and that’s just the short-term economics. Long term, the decrease in biodiversity on the landscape from lack of invasive species treatment will erode the ability to maintain diverse ecosystems and timber production on national forest lands.

Another unfortunate example is purple loosestrife management on the Au Sable River watershed on the Huron Manistee National Forest. Purple loosestrife can rapidly establish and replace native vegetation, leading to a reduction in plant diversity, which reduces habitat value to wildlife. On the main branch of the Au Sable River, Michigan Department of Natural Resources (DNR) has been using GNA project revenues to treat populations on National Forest System (NFS) lands while skipping treatment on the adjacent private lands upstream. When treating invasive species along a moving waterbody, the focus should be on the upstream infestations to prevent downstream spread, as seeds, rhizomes and roots, and plant fragments can easily flow downstream. This cannot be accomplished with GNA under the current limitations with respect to treatment of project revenue.

Making GNA project revenues available for restoration efforts on neighboring public or private lands is not only good economics it is good for neighbors of federal lands. When invasive species can be successfully eradicated in one area—the focus can then shift to other areas, thus making a greater impact on the ever-growing problem of invasive species on the landscape.

As another example of the current limitations to GNA with respect to the treatment of GNA project revenues created by the 2018 Farm Bill, we’d like to turn your attention to the attached map which highlights the Manitou River GNA project in Minnesota. The Manitou River GNA timber sale contains both Superior National Forest and state of Minnesota ownership. This joint timber sale is 104 acres in size and is composed of mixed stands of aspen, paper birch, white spruce, and balsam fir. The white spruce and balsam fir species have considerable damage due to an outbreak of spruce budworm over the last few years. The stands are located within the Manitou River watershed, with the Manitou River, a designated trout stream, directly to the south, and numerous trout stream tributaries in the area. The post-harvest regeneration plans are to prepare the site for planting through rock raking and planting a mix of long-lived conifer.

This map is a good representation of the complex mix of land ownerships, commonly referred to as “checkerboard” or “matrix” which is typical around the boundaries of national forests across the country. As you can see in this example, the diagonal lines indicate timber sale boundaries on federal lands which are represented on this map by green areas. The timber sale project surrounds a county administered parcel (brown), and many parcels of land administered by the state of Minnesota (purple) are intermixed. A network of forest roads intersects all these lands to provide access for active management, recreation, and fire suppression.

Due to the restrictive language in the 2018 Farm Bill, the Minnesota DNR and other state forestry agencies facing similar circumstances, will not be able to use GNA project revenues generated from these timber sales for post-harvest site preparation and tree planting, updating culverts on forest roads that provide access for the timber sale, or other restoration activities on non-federal lands within the GNA project boundary. Continuing the restoration projects across ownership boundaries within the identified GNA project boundary would benefit the ecology of the trout streams and allow for the complete restoration of this comprehensive landscape under a single GNA project—irrespective of arbitrary ownership boundaries—and all within the boundaries of this agreed upon GNA project area. Once the portion of the timber sale project is harvested on state ownership, Minnesota DNR will plan to fund follow up treatments on the state-owned portion of the timber sale using state funds. Because GNA project revenue can’t be applied across ownerships, treating these acres will require a separate contract and reforestation plan than the adjacent NFS lands. Because this limitation creates inefficiencies and higher costs for landscape level planning and treatment, less restoration is likely to be accomplished.

From a scientific and ecological perspective this makes absolutely no sense, and from a policy and good governance perspective, supporting this statutory limitation is untenable. This is why in part, the Treating Tribes and Counties as Good Neighbors Act—which would rectify this limitation— won immense bipartisan support in the House of Representatives, garnering 98 votes in support and zero opposed from Democrat and Republican members of the Agriculture and Natural Resources Committees, and recently passed in the House of Representatives by a voice vote.

We respectfully call on you as leaders of the House and Senate Agriculture Committees to fix GNA in the 2023 Farm Bill to fully unlock its potential as a cross boundary restoration tool. Since authorization twenty-two years ago in 2001 as a pilot program for NFS lands in Colorado (P.L. 106-291 §331), GNA has proven to be an effective tool for increasing the pace and scale of forest restoration on federal lands. The time has come to strengthen and permanently authorize all aspects of this time-tested program.

We urge you to consider these impending impacts and request you include an extension of the 2018 Farm Bill authority mentioned above in any continuing resolution or other legislative vehicle, to provide certainty and support for this important forest restoration authority.

Thank you for your outstanding leadership on forestry issues and for your steadfast dedication to improving the health, resiliency, and productivity of all America’s forests as you work to pass the 2023 Farm Bill.

Sincerely,

American Forest Foundation
National Association of State Foresters
American Forest Resource Council
National Deer Association
Association of Consulting Foresters
National Wild Turkey Federation
Boone and Crockett Club
National Woodland Owners Association
Catch-A-Dream Foundation
PotlatchDeltic
Congressional Sportsmen’s Foundation
Rayonier
Empire State Forest Products Association
Resource Management Service, LLC
Federal Forest Resource Coalition
Ruffed Grouse Society–American Woodcock Society
Forest Resources Association
Salt River Project
Indiana Forestry & Woodland Owners Association
Society of American Foresters
Massachusetts Forest Alliance
Sonen Capital
Michigan Forest Association
Theodore Roosevelt Conservation Partnership
Minnesota Forestry Association
White Oak Initiative
National Association of Counties
Wildlife Mississippi
National Association of Forest Service Retirees

MICHIGAN IS MY HOME.

It is a special place in the land of the Great Lakes where fresh waters lap upon the shores of two peninsulas.

I WILL STRIVE TO KEEP THE BEACHES CLEAN AND THE WATER PURE.

Some of the land is used for cities and industry where families live and work.

I WILL HELP PEOPLE LEARN HOW TO KEEP THESE USES FROM DAMAGING THE AIR, WATER AND SOIL.

Some of the land is used for agriculture, providing food and clothing for us all.

I WILL SUPPORT THE KIND OF FARMING THAT IS GOOD FOR THE SOIL AND DOES NOT POLLUTE THE WATER.

Some of the land is used for forest, a renewable resource. The forest produces wood and fiber for our needs, habitat for wildlife, recreation and beauty for all who pass by.

I WILL BE CONSIDERATE OF ALL THE VALUES OF THE FOREST.

I SHALL STRIVE TO LIVE IN HARMONY WITH MY FAMILY, MY NEIGHBORS AND THE NATURAL ENVIRONMENT.

I WANT TO LEARN HOW TO BE A GOOD STEWARD OF THIS LAND AND TO INSURE FOR FUTURE GENERATIONS, THAT ALL THE BENEFITS I NOW ENJOY, WILL ALSO BE THEIRS, WHEN MICHIGAN IS THEIR HOME.

(MICHIGAN FOREST ASSOCIATION © February 1992)

BACKGROUND:

The State of Michigan has long recognized the need for tax equity for forested lands. The rationale is that all lands should be taxed in proportion to their value or productive capacity. Over several years the State developed and modified two forest tax programs, the Commercial Forest Act (CFA), and the Private Forest Reserve Act (PFRA). Revisions on CFA, which make it more equitable and more economical to administer, have been passed. PFRA has restrictive requirements for qualification, which have caused only about 5,000 acres statewide to be enrolled in the program. Some revisions to PFRA should make it applicable to more woodlands, more equitable, and should have the result of maintaining more land in forest and promoting better management.

MFA POSITION:

The Michigan Forest Association supports the development of a new or revised act to cover small forested parcels. This proposed act or revision would be modeled after the current CFA with the following major points:

• The purpose of the act is to make it possible for landowners to maintain ownership of commercial forest land without paying taxes based on a “higher” use or the land.
• Owners would be required to have a management plan for the area enrolled, This plan could include such things as wildlife openings, wildlife management, timber harvest, wetland considerations, etc.
• Minimum forested acreage would be 10 acres in any one parcel, with a maximum of 1/4 section in any one contiguous tract,
• Payments would be the same as under the CFA if the owner does not wish to restrict public access.
• By paying double the CFA rate, owners would be allowed to restrict public access, while having all the other benefits of the act.
• There would be no requirement that the parcel be part of a farm.
• Lands currently enrolled in the CFA or PFRA could be enrolled in this act without penalty, if the lands otherwise qualify under the new act.
• Restrictions on development, buildings, other commercial uses, etc. would parallel the CFA.
• This act should provide for paying the appropriate tax rather than getting a tax rebate on the income tax or the small business tax (as in PA 116).

The Michigan Forest Association favors classifying forest land as agricultural land for purposes of being assessed at the agricultural rate (currently 6 mills).

This policy was adopted by the Board of Directors of the Michigan Forest Association on February 7, 1997, renewed May 16, 2003.

BACKGROUND:

Several areas in Michigan have experienced significant amounts of agricultural crop damage from the large deer herd. Where such crop damage has been documented and relief sought, block permits for harvesting deer have been issued. This has generally been accepted as a satisfactory way of addressing the situation.

In many places planted seedlings and naturally regenerated forest trees are also experiencing severe deer damage. Attempts to control damage to seedlings by repellents and fencing have proven either ineffective or costly. Heavy browsing by deer results in a new forest of insufficient density, or the elimination of tree and other forest flora. ‘The overbrowsed areas lose much of their value to both society and wildlife.

MFA POSITION: 

The Michigan Forest Association proposes use of block deer permits issued to forest landowners for harvesting deer in instances of documented deer damage to forest trees either planted or naturally regenerated.

Adopted by the MFA Board of Directors 2/10/95. Amended 2/7/97 and 5/16/03. Renewed 5/16/03.

Michigan Forest Association (“MFA”), a not for profit organization organized under the laws of the State of Michigan, encourages the solicitation and acceptance of gifts to or for the benefit of MFA for purposes that will help MFA to further and fulfill its mission.

The mission of MFA is to inspire and empower people to sustainably manage, conserve and enjoy forests through education, advocacy and fellowship.

MITA’s OFFICERS AND DIRECTORS have a fiduciary duty to assure that MFA’s assets are used efficiently and protected from potential liabilities and diversion to purposes other than those that further MFTA’s goals. The following policies and guidelines govern acceptance of gifts made to MFA or for the benefit of any of its programs.

1. Purpose of Policies and Guidelines

The Board of Directors of MFA and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of MFA. We appreciate donors’ consideration of any gift to MFA. In all matters involving current and prospective donors, the interest of the donor is important to MFA.

These policies and guidelines govern the acceptance of gifts by MFA and provide guidance to prospective donors and their advisors when making gifts to MFA. The provisions of these policies apply to all gifts to MFA for any of its programs. Gifts will be accepted only if they do not interfere with MFA’s mission, purpose and procedures.

MFA shall accept only such gifts as are legal and consistent with organizational policy. While MFA does not provide tax advice, MFA will strive to assist donors in complying with the intents and purposes of the Internal Revenue Service in allowing charitable tax benefits.

Key principles include safeguarding the confidentiality of the donor relationship, providing full disclosure to the donor, and ensuring that gifts are recorded, allocated and used according to the donor intent and designation.

1. General Policies Relevant to All Gifts
2. Use of Legal Counsel

MFA shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:

• Closely held stock transfers subject to restrictions or buy-sell agreements.
• Documents naming MFA as Trustee.
• Gifts involving contracts, such as bargain sales or other documents requiring MFA to assume an obligation.
• Transactions with potential conflict of interest that may involve IRS sanctions.
• Other instances in which use of counsel is deemed appropriate by the executive team.

1. Conflict of Interest

MFA will urge all prospective donors to seek the assistance of independent personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. MFA and its employees and agents are discouraged from advising donors about the tax consequences of their donations. Gifts are also subject to the provisions of other MFA policies, including adopted Conflict of Interest policies.

MFA strives to ensure accepted gifts are in the best interests of the organization and the donor. MFA works to follow The Donor Bill of Rights adopted by the American Association of Fund-Raising Counsel Trust for Philanthropy, the Association of Fundraising Professionals and other professional organizations.

MFA will comply with the Model Standards of Practice for the Charitable Gift Planner, promulgated by the National Committee on Planned Giving, shown as an appendix to this document.

1. Restrictions on Gifts

MFA will accept unrestricted gifts, and gifts for specified programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities. MFA will not accept gifts that are too restrictive in purpose. Gifts for purposes that are not consistent with MFA’s mission or consonant with its current or anticipated future programs cannot be accepted. Examples of gifts that are too restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of MFA. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the executive team of the MFA.

1. The Executive Committee and the Board of Directors

The executive committee will review all gifts proposed to be made to MFA, properly screening, and making recommendations to the Board of Directors on gift acceptance issues when appropriate.  The Board of Directors will approve all gift acceptance decisions.

1. Establishing the Value of Donated Property

It is the policy of MFA to comply fully with the valuation rules set out in Publication 561 of the Internal Revenue Service and the relevant income, gift and estate tax laws and regulations. Copies of Publication 561 are available at www.irs.gov. Property contributed to MFA that has a value in excess of $5,000 must be accompanied by an appraisal unless it consists of

• cash,
• marketable securities,
• closely held securities with a value of $10,000 or less,
• a vehicle or boat, the value of which will be determined by its sale,
•  intellectual property such as a copyright or patent,
• stock-in-trade, inventory or other property that would otherwise be held by the donor for sale to customers in the ordinary course of the donor’s business or
• property contributed by a corporation that constitutes a “qualified contribution,” as described in Section 170(e)(3)(A) of the Internal Revenue Code of 1986, that will be used for the care of the ill, needy or infants.

The fee for the appraisal may not be based on the value of the appraised property, and the appraiser must be “qualified,” as that term is used in IRS Publication 561. A “qualified appraiser” is one who is ordinarily in the business of appraising similar property, has appropriate educational and experiential background, who performs appraisals for many different people and purposes (and not primarily either for MFA or for the donor) and who is not employed by MFA, the donor, any relative of the donor or any entity controlled by the donor or members of the donor’s family. Duplicate originals of each appraisal should be prepared, one for MFA and one for the donor.

MFA reserves the right to alter the value of property contributed to it on the books and records of MFA for accounting, tax-reporting, annual fund record-keeping or any other purpose if developments after the completion of the gift or information that comes to the attention of MFA after the gift is completed are determined, in the discretion of the Executive team or MFA’s auditors, to merit such an alteration.

1. Tax Compliance

MFA’s policy is to comply with Internal Revenue Service reporting requirement and all other aspects of state and federal tax law.

III. Types of Gifts

The following gifts are acceptable but not intended to represent an exclusive list of appropriate gifts:

• Cash
• Tangible Personal Property
• Securities
• Real Estate
• Remainder Interests in Property
• Oil, Gas, and Mineral Interests
• Bargain Sales
• Life Insurance
• Charitable Gift Annuities
• Charitable Remainder Trusts
• Charitable Lead Trusts
• Retirement Plan Beneficiary Designations
• Bequests
• Life Insurance Beneficiary Designations

The Board of Directors of MFA shall make the final determination on the acceptance or rejection of gifts of all forms.

The following criteria govern the acceptance of each gift form:

1) Cash. Cash refers to cash equivalents, including checks, money orders, currency/coin, and credit card payments. Checks or money orders shall be made payable to “Michigan Forest Association”, shall appropriately identify the donor or donors and be delivered to MFA’s administrative offices.  Wire and Electronic Funds Transfer (EFT) can usually be arranged with the MFA staff. If a matching gift company or workplace giving company wants to send and ACH/EFT every week instead of a check, these must be authorized by the cash receipting manager at MFA before the enrollment form is sent back to the constituent.

2) Tangible Personal Property. All other gifts of tangible personal property shall be examined in light of the following criteria:

• Does the property fulfill the mission of MFA?
• Is the property marketable?
• Are there any undue restrictions on the use, display, or sale of the property?
• Are there any carrying costs for the property?

3) Securities. MFA can accept both publicly traded securities and closely held securities.

• Publicly Traded Securities. Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the executive team. In some cases, marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities shall be made by the gift executive team of MFA.
• Closely Held Securities. Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in limited partnerships and limited liability companies, or other ownership forms, can be accepted. Such gifts, however, must be reviewed prior to acceptance to determine that:

1. a) There are no restrictions on the security that would prevent MFA from ultimately converting it to cash;
2. b) The security is marketable; and
3. c) The security will not generate any undesirable tax consequences for MFA. If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The executive team of MFA with the advice of legal counsel shall make the final determination on the acceptance of closely held securities when necessary. Every effort will be made to sell non-marketable securities as quickly as possible.

4) Real Estate. Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of real estate, MFA shall require an initial environmental review of the property to ensure that the property has no environmental damage or potential liability. In the event the initial inspection reveals a potential problem, MFA shall retain a qualified inspection firm to conduct an environmental audit. Non-residential properties shall definitely require a Phase I audit. The cost of environmental audits shall generally be an expense of the donor.

When appropriate, a title insurance binder shall be obtained by MFA prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor. Prior to acceptance of real property, the gift shall be approved by the executive team with the advice of MFA’s legal counsel. Criteria for acceptance of the property shall include:

• Is the property useful for the purposes of MFA?
• Is there a Forest Management plan for the property?
• Is the property marketable? Is the property enrolled in a Michigan tax program (CF or QF)?
• Are there any restrictions, reservations, easements, or other limitations associated with the property?
• Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?
• Does the environmental audit reflect that the property is not damaged?

5) Remainder Interests in Property. MFA will accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions of paragraph 4 above. The donor or other occupants may continue to occupy the real property for the duration of their stated life or lives. Upon termination of the life interest, MFA may use the property or reduce it to cash. Where MFA receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or life tenant(s).

6) Oil, Gas, and Mineral Interests. MFA may accept oil and gas property interests, when appropriate. Prior to acceptance of an oil and gas interest the gift shall be approved by the executive team with the advice of MFA’s legal counsel, if necessary. Criteria for acceptance of the property shall include:

• Gifts of surface rights should have a value of $20,000 or greater.
• Gifts of oil, gas, and mineral interests should generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift).
• The property should not have liabilities or other considerations that make receipt of the gift inappropriate
• A working interest is rarely accepted. A working interest may only be accepted where there is a plan to minimize potential liability and tax consequences.
• The property should undergo an environmental review to ensure that MFA will have no current or potential exposure to environmental liability.

7) Bargain Sales. MFA will enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of MFA. All bargain sales must be reviewed and recommended by the executive team and approved by the Board of Directors. Factors used in determining the appropriateness of the transaction include:

• MFA must obtain an independent appraisal substantiating the value of the property.
• If MFA assumes debt with the property, the debt ratio must be less than 50% of the appraised market value.
• MFA must determine that it will use the property or alternately, that there is a market for sale of the property, allowing sale within 12 months of receipt.
• MFA must calculate and approve the costs to safeguard, insure, and pay expenses of the property (including property tax, if applicable) during the holding period.

8) Life Insurance. MFA will generally accept life insurance but it must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt. Whether any policy is accepted will depend on the economics of the transfer.

If the donor contributes future premium payments, MFA will include the amount of the additional premium payment as a gift in the year that it is made.

If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, MFA may:

• continue to pay the premiums;
• convert the policy to paid up insurance; or
• surrender the policy for its current cash value.

9) Charitable Gift Annuities. MFA may offer charitable gift annuities in the future. The minimum gift anticipated for funding is $50,000. MFA’s executive team may make exceptions to this minimum. The minimum age for life income beneficiaries of a gift annuity shall be 62. Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 55. No more than two life income beneficiaries will be permitted for any gift annuity. Annuity payments may be made on a quarterly, semi-annual, or annual schedule. MFA’s executive committee may approve exceptions to this payment schedule. MFA will not accept real estate, tangible personal property, or any other illiquid asset in exchange for current charitable gift annuities. MFA may accept real estate, tangible personal property, or other illiquid assets in exchange for deferred gift annuities so long as there is at least a 5-year period before the commencement of the annuity payment date, the value of the property is reasonably certain, and the executive team approves the arrangement. Funds contributed in exchange for a gift annuity shall be set aside and invested during the term of the annuity payments. Once those payments have terminated, the funds representing the remaining principal contributed in exchange for the gift annuity shall be transferred to MFA’s general endowment funds, or to such specific fund as the donor designated.

10) Charitable Remainder Trusts. MFA may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the gift acceptance committee. MFA will not accept appointment as trustee of a charitable remainder trust.

11) Charitable Lead Trusts. MFA may accept a designation as income beneficiary of a charitable lead trust. MFA will not accept an appointment as Trustee of a charitable lead trust.

12) Pooled Income Fund. MFA does not maintain a pooled income fund. Donors who are interested in using a pooled fund as a planned giving vehicle may discuss contributions to the pooled income fund with the MFA Executive Team.

13) Deferred Compensation/Retirement Plan Beneficiary Designations. MFA generally will accept gifts designating MFA as a beneficiary of the donor’s retirement plans including, but not limited to, IRA’s, 401(k)’s 403 (b)’s and other plans. Such designation will not be recorded as a gift to MFA until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

14) Bequests. Donors and supporters of MFA will be encouraged to make bequests to MFA under their wills and trusts. Such bequests will not be recorded as gifts to MFA until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable. The criteria for the acceptance of the gift or bequest will be the same as otherwise provided herein.

15) Life Insurance Beneficiary Designations. Donors and supporters of MFA will be encouraged to name MFA as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to MFA until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

1. Miscellaneous Provisions
2. A. Securing appraisals, environmental review, assessment or remediation costs and legal fees for gifts to MFA. The cost to secure an appraisal, environmental review, assessment or remediation (where required) and independent legal counsel for any gifts proposed to be made to or for the benefit of MFA are generally the Donor’s responsibility.
3. Fees and Commissions

MFA generally does not pay “finder’s fees” or commissions to third parties in connection with any kind of gift to MFA. MFA does, however, pay commissions and fees to properly negotiate and transfer assets, including boats. No officer, employee or agent of MFA is or will be compensated in a manner that is dependent on the size or nature of gifts made to MFA by any person. If MFA engages legal counsel, accounting professionals, appraisers or environmental consultants, their fees and expenses will be determined by the time they spend engaged in MFA’s work and not by reference to any particular gift in connection with which they are retained.

1. Trips and Special Events

When trips or special events involve a charitable contribution, the fair market value and the charitable contribution amount for each participant will be stated specifically in the promotional literature and donor acknowledgment letter. Donations given to offset the costs of a special event must be recorded as gift income, rather than as a credit to an expense account.

1. D. Changes to Gift Acceptance Policies

These policies and guidelines have been reviewed and recommended to the Board by the executive team of MFA. The Board of MFA must approve any changes to these policies.

The policies will be regularly reviewed.

CERTIFICATION

I, Lisa D. Parker, Associate Executive Director of Michigan Forest Association., a Michigan nonprofit corporation, hereby certify that the Gift Acceptance Policy was adopted by the Board of Directors of the Michigan Forest Association in a legally called meeting held on March 2, 2018, and further certify that after being put to vote, the number of votes cast for the Policy was sufficient for its approval.

IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of February, 2019.

MICHIGAN FOREST ASSOCIATION, A Michigan nonprofit corporation

By: ______________________________________________

Lisa D. Parker, Associate Executive Director

Should work that a volunteer performs for the Michigan Forest Association  result in the creation of intellectual property rights, the volunteer agrees, as a condition of volunteer employment, that:

1. such intellectual property shall be deemed a work made for hire owned by Michigan Forest Association and
2. to the extent it does not qualify as a work made for hire for any reason, the volunteer irrevocably and unconditionally assigns to Michigan Forest Association all rights, title, and interest in and to any such intellectual property rights, and
3. this is true even if the material developed by the volunteer is published under his/her name by Michigan Forest Association or some other entity.
4. The volunteer further agrees that s/he will not make commercial use of the information or material developed while volunteering at Michigan Forest Association, either while volunteering for or after leaving Michigan Forest Association, without the express written approval of Michigan Forest Association.

CERTIFICATION

I, Lisa D. Parker, Associate Executive Director of Michigan Forest Association., a Michigan nonprofit corporation, hereby certify that the attached Policy on Intellectual Property Rights was adopted by the Board of Directors of the Michigan Forest Association in a legally called meeting held on March 2, 2018, and further certify that after being put to vote, the number of votes cast for the Policy was sufficient for its approval.

IN WITNESS WHEREOF, I have hereunto set my hand this 2^nd day of March, 2018.

MICHIGAN FOREST ASSOCIATION, A Michigan nonprofit corporation

By: ______________________________________________

Lisa D. Parker, Associate Executive Director

Reasons for holding and managing Property

• Property gift acceptance and property disposal will be governed by the Gift acceptance policy and be approved by the Board of Directors.
• Property is accepted, held and managed to provide outreach and education sites, demonstrations, and opportunities for citizens to view and experience various forest system management actions, with the purpose of helping citizens understand the importance of stewardship of our forests through sustainable decisions.

Property Committee

• MFA will form a committee to manage all contracts, plans, and use of MFA properties.
• The Committee Chair will be elected by the appointed members of the Property Committee.
• Property committee is appointed by the Board of Directors.
• Property Committee will be responsible for hiring contractors.
• Property Committee Chair will sign all documents related to property management.
• Property use will be approved by the Committee chair, and will conform with the regulations of Commercial forest program or the Qualified forest program, in addition to other rules instigated by the Property committee and approved by the Executive Team.

Financial responsibilities for Property  

• Payments related to the property:
  • Regular payments – such as taxes or general maintenance will be paid by the MFA treasurer at the request of the committee chair
  • Non-regular payments – such as one-time fee for site preparation, burning, or fines will be approved by the committee.
• Proceeds for the properties will be used to further the mission of the Michigan Forest Association, which is to provide education and information regarding Michigan forests to all citizens, both through on-site workshop and also through presentations of the challenges of managing our mosaic of forest types across Michigan’s geographical variances.
• Proceeds from the property will be distributed as follows:
  • Land Management Fees, taxes and expenses                 30%
  • Direct educational actions and workshops                 10%
  • MFA operations – including educational costs & administration                 60%

CERTIFICATION

I, Lisa D. Parker, Associate Executive Director of Michigan Forest Association., a Michigan nonprofit corporation, hereby certify that the attached Policy on Property Use and Management was adopted by the Board of Directors of the Michigan Forest Association in a legally called meeting held on March 2, 2018, and further certify that after being put to vote, the number of votes cast for the Policy was sufficient for its approval.

IN WITNESS WHEREOF, I have hereunto set my hand this 2^nd day of March, 2018.

MICHIGAN FOREST ASSOCIATION, A Michigan nonprofit corporation

By: ______________________________________________

Lisa D. Parker, Associate Executive Director

BACKGROUND:

Old Growth timber stands are important for two reasons: first, they are important as ecological study areas where natural processes can be studied; second, it is important for people to know that some old growth areas still exist relatively unaffected by the hand of man.

MFA POSITION:

MFA supports the preservation of most remaining old growth stands for the reasons stated above. This does not mean, however, that we support preservation of all stands of large trees or individual large trees. We recognize that most forest stands in Michigan have been heavily affected by human activities and have limited value as natural study areas. We also recognize that well-managed forests have most of the characteristics of old growth that appeal to the general public.

Second growth forests of large trees should not be confused with old growth and should not be labeled as such. To call such stands old growth detracts from the message our association strives to convey to the public that good forest management produces fine quality stands, both economically and aesthetically. Old growth management concepts should not be applied to stands such as aspen which start to disintegrate and be replaced by other species as they mature.

This position statement was adopted by the Michigan Forest Association Board of Directors on May 8, 1993. It was modified on August 11, 2000, and on November 9, 2007 

BACKGROUND: 

The Michigan Forest Association (MFA) recognizes that management of private timberlands is important to Michigan and the nation both from the standpoint of environmental protection and from the standpoint of future timber supplies. Since approximately half of the timberland in Michigan and in the United States is owned by nonindustrial private owners, the health and productivity of these forests is important economically and socially.

MFA POSITION:

MFA relies on the following assumptions in making the recommendations which follow.

MFA believes:

• that most woodland owners are not damaging their land or the environment,
• that inequitable taxation is a significant obstacle to maintaining lands in forest cover and managing the forests properly,
• that woodland owners provide many benefits to society such as clean air, pure water, wildlife habitat, and recreation for which society does not compensate them, that education and incentives to private landowners are more effective and less costly in promoting good forest management on private lands than punitive regulations,
• that the Forest Stewardship Program, sponsored jointly by the U. S. Forest Service and the Michigan DNR, and the Sustainable Forestry Initiative (SFI), sponsored by forest industry, are effective programs to provide good management information, requiring minimum oversight when landowners are working with a professional forester,
• that lumber grading rules, administered by the wood using industry, are a good example of a successful long-standing program of self-regulation operated by industry without government control,
• that laws passed by other states spelling out the right of landowners to practice forestry have been a factor in encouraging good forest management, that eliminating positions of Service Foresters so that Michigan has approximately 1/10 as many Service Foresters as nearby states with less private forest land seriously jeopardizes successful education of woodland owners,
• that fragmentation of land and conversion to other uses, not timber harvesting. is the main threat to forests,
• that industry, through its own initiatives and in cooperation with other programs, can be very effective in promoting good forest stewardship, based on self interest.

For the reasons stated above. MFA recommends the following: 

• that the Legislature be urged to provide adequate funding for state agencies to provide information on good forest management to private woodland owners,
• that the Legislature be urged to provide equitable taxation for woodland owners so that land is taxed in proportion to its productive capacity rather than for higher uses such as development. (This measure should slow the conversion of forest land to other uses. )
• that the right to practice forestry, including the harvesting of timber, be affirmed as public policy in Michigan, that the Legislature promote education and voluntary guidelines, rather than regulations, to promote healthy forests and good forest practices,
• that the Legislature and the Administration be encouraged to continue efforts to promote private forestry and forest products to benefit forest landowners and Michigan’s economy.

Passed by the Michigan Forest Association Board 2/7/97. Modified 8/11/00.

BACKGROUND:

For reasons stated below the Michigan Forest Association favors the multiple use management of public lands in accordance with applicable laws. Public lands should provide timber products in proportion to their productive capacity. MFA favors timber harvesting of allowable cuts to provide forest products demanded by society in a way that protects long-term productivity and enjoyment of other forest benefits. MFA favors harvest levels that are sustainable and opposes reduction in harvest levels not based on science.

MFA POSITION:

MFA believes the following:

• The demand for forest products in the State of Michigan, the U. S., and the world will continue to grow as populations continue to grow.
• The forests of Michigan and much of the rest of the United States are renewable and, if managed scientifically, they can provide forest products and other benefits of the forest such as clean air, pure water, wildlife habitat, recreation, aesthetics, and other amenities indefinitely into the future without any diminishing of products and without any environmental damage.
• The reduction of cutting on federal lands unnecessarily reduces income to the Treasury and federal payments in lieu of taxes to local governments. It further harms local economies by reducing employment.
• The reduction in harvest may also result in overcutting on other forest ownerships in the U.S. and in other countries.
• The manufacture of forest products is accomplished with less use of non-renewable fossil fuels and with less pollution than the manufacture of possible substitutes for forest products.

This position statement was adopted by the Michigan Forest Association Board on 2/7/97, modified 8/10/00.

BACKGROUND: 

Many people and organizations are interested in mailing lists for everything from advertising products to providing educational opportunities. The MFA membership (or mailing) list is uniquely restricted to people interested in forestry and forest land ownership. It therefore represents a narrowly focused refined list for certain interest groups.

MFA POLICY:

The executive director is the keeper of the list and is responsible for seeing that it is not misused.

The executive director is encouraged to provide the list free of charge to non-profit organizations (universities, extension offices, other government organizations, etc. for educational purposes). This is to include such things as fliers for seminars, announcements of forums or discussions of forestry interests, proposed legislative actions, etc.

The executive director is restricted from providing the list for commercial purposes without prior approval from the executive committee or the entire board of directors if possible. The board of directors or executive committee may consider each commercial use of the list on its own merits, and may require the payment of fees to the organization if they feel it is in the organization’s best interests to receive the proposed mailing.

Whenever the list is released, a restrictive statement should accompany the list. This statement, or covenant, shall prevent the recipient of the list from selling, reselling, or giving the list to any other person or organization.

If the intent of the organization requesting the mailing list seems appropriate, but the requester is unwilling to guarantee the security of the list, the executive director may request that the proposed mailing materials be sent directly to the MFA office. Upon receipt of the materials, complete with postage, the director can affix the mailing labels of the organization. This will provide the membership with potentially valuable materials and at the same time keep the list secure.

Passed by the Michigan Forest Association Board on 1/13/89. Amended 2/7/97. Renewed 5/16/03.

BACKGROUND: 

Minerals such as gas, oil, iron or , copper, and so forth are required to maintain our way of life. From time to time, removal of the resources from public lands has been the subject of debate as the removal activity appears to infringe on the interests of some individuals or groups. Certainly there are instances when the impact of removal would not be in the best interest of the majority of the public. However, if the removal can be done in a reasonable fashion and the impacts of the removal are minimized, and/or mitigated it is in the best interest of the general public to allow such removals.

Government agencies are often required to make decisions that may conflict with the wishes of some individuals or groups. It is imperative that these agencies carefully weigh the issues and act in the best interests of the general public.

MFA POSITION: 

The Michigan Forest Association supports the removal of mineral resources from public lands when adequate safeguards are taken to minimize the impact on the other resources such as water, soil, visual quality, air, forests, wildlife, and fisheries.

Passed by the Michigan Forest Association Board on 8/15/03.

BACKGROUND: 

Michigan Forest Association is a group of forest landowners, foresters, and others interested in the well-being of Michigan’s forest resources. Sustainable, scientific forest management is the underpinning of the health of our resource, regardless of ownership. This scientific management seeks to provide growing space for the trees with high value potential – generally by removing trees of lesser quality. Thus, markets for these trees of lesser quality are essential for sustaining the health of our forests.

Michigan is currently growing more than twice as much wood as we are harvesting. Much of the surplus growth is in low-quality material. The situation is exacerbated in Lower Michigan by the recent closing of three major plants that used low-quality wood – two pulp mills and a fiber board mill

The sustained health of Michigan’s forest depends on the availability of markets for the products we are growing; we are currently lacking in markets for low-quality wood.

MFA POSITION:

Therefore, Michigan Forest Association favors development of wood-using plants that would provide markets for our accumulating surplus of low-grade material. Such markets might be for paper, fiber boards, fuel, or other products.

This position statement was adopted by the Michigan Forest Association Board of Directors on November 9, 2007. 

As Woodland Owners we agree to: 

1. Follow Best Management Practices when harvesting trees.
2. Show, by action, a practical concern for other resources, including water, wildlife, soil, and natural beauty
3. Share our knowledge of good forestry with others and exercise our property rights in a responsible manner.
4. Use only “certified loggers” when available.
5. When practical, and at our discretion, we will consider opening our land to hunting and other uses by the public, either at a fee or at no cost.
6. Manage our woodlands to promote economic and biological benefits. 

In Return, we expect: 

1. Respect for private property rights.
2. Fair timber taxes, at the federal, state, and local levels.
3. Self -policing among mill owners so as not to provide a market for stolen or improperly harvested wood
4. Loggers and foresters to perform to the highest standards
5. Multiple sources of professional forestry advice and educational opportunities.
6. A fair chance to compete in a free market. 

Supported as an affiliate of the National Woodland Owners Association originally on 2/10/95 and renewed on 2/4/00 by the MFA Board and renewed again on 5/16/03.