The Nature Conservancy has suspended a range of practices,
including the sale of ecologically sensitive land to its trustees as home sites,
in the wake of press accounts describing the Arlington-based nonprofit's
activities and concerns expressed by some of its 1 million members.
The Conservancy, the world's richest environmental group,
said it has halted all "conservation buyer" real estate transactions until the
charity's board of governors reviews the practice in June. A Washington Post
series last week reported that many buyers have been current and former
Conservancy state trustees.
The Senate Finance Committee's chairman and ranking Democrat
announced last week that they plan to look into the sales, which are designed to
limit intrusive development but generally allow buyers to construct
houses.
Under the program, the charity buys raw land, attaches some
development restrictions and then resells the properties to supporters at
greatly reduced prices. Buyers give the Conservancy cash payments for roughly
the amount of the discount, a sum that is then written off the buyers' federal
income taxes.
Other articles described how the Conservancy's board and
leadership council today include executives and directors from corporations that
have paid millions in environmental fines. The series also showed how the
52-year-old charity's alliances with Fortune 500 companies had helped it amass
assets totaling more than $3 billion.
In a statement posted on the Conservancy Web site, nature.org, the organization said it also has:
• Suspended all new logging and other "resource extraction
activities" on its nature preserves. The Post articles detailed how in Texas
City, Tex., the organization had drilled for oil and natural gas under the last
native breeding ground of a highly endangered species of grouse known as the
Attwater's prairie chicken. The suspension will not stop natural gas production
on the Texas preserve, a spokesman said.
• Suspended all new "cause-related marketing partnerships."
The articles told how the Conservancy had sold its name and logo for use on
consumer goods, including toilet cleaner and other products made by corporations
whose executives and directors had sat on the Conservancy's governing board and
advisory council.
• Suspended all new loans to employees. The articles
disclosed that the Conservancy had extended a $1.55 million loan to its
president, Steven J. McCormick, and then misidentified the interest rate. After
being questioned by reporters, McCormick repaid the loan.
The Conservancy statement criticized The Post series, titled
"Big Green," for containing what it described as "mischaracterizations" and a
"lack of context." Even so, the organization plans a detailed review of the
programs discussed.
"We take the broad issues the articles raised very
seriously," the statement said. "The Conservancy's Board of Governors will
dedicate its entire June meeting to a frank and open discussion of our
practices, policies, and procedures. The board will focus on the Post's specific
charges. . . .
"We will be paying particularly close attention to issues
relating to how we engage and work with our Board and state chapter trustees. We
are committed to making permanent and substantive changes where
needed."
The meeting will be closed to Conservancy members, but will
include time for "some sort of public discussion," a spokesman said.
Over the past week, the Conservancy's board has paid for
three full-page advertisements in The Post, each stressing the organization's
accomplishments and its dedication to preserving undeveloped land.
Sen. Charles E. Grassley (R-Iowa), chairman of the Finance
Committee, and ranking Democrat Max Baucus of Montana are drafting a letter to
the Conservancy seeking answers to a range of concerns about the land deals and
other governance issues.
"Taxpayers have the right to know how the Nature Conservancy
conducts its business," Grassley said in a statement on Friday. "I'll be
overseeing the charity's actions, asking tough questions and following through
until satisfactory answers are given."
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