Historical buildings represent an important part of remembering our past and preserving our culture. As a society we value them highly for that reason as well as for their beauty. Unfortunately maintaining these special buildings typically comes at substantial cost.
Historical buildings by definition are old – sometimes very old. They often need support that is beyond the capacity of an individual or family to handle. That's true whether the support needed is work or financial help.
Fortunately for all of us, there are several Financial Options To Preserve Historical Buildings, as you will learn more about below. These important options are critical because the structure's needs tend to go beyond typical building maintenance.
To uphold the integrity of these older buildings, repairs must be completed using materials that are as true to the original as possible. And that can be expensive (if it's even possible). This requirement may mean finding rare goods or importing materials from distant places. Sometimes special artisans are required in addition to work crews who know how to work with older materials. As you might imagine, such specialization does not come cheap. In addition to donations from generous individuals, grants and loans are often available from a variety of sources. These sources include the government as well as private organizations.
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The foundations and organizations that own these pieces of property look for grants to help them do their renovations and repairs. Not all grants for historical buildings are just alike so all grant seekers must be careful which ones they apply for.
The Cynthia Woods Mitchell Fund: If the building you are seeking investment for is a part of a building with the designation of a National Historic Landmark, this group might be able to help you. They provide grants to agencies and organizations that are working to preserve or renovate the interiors of historic buildings. They provide grants up to $10,000 to pay for hiring expert assistance as well as for providing materials and programs that help to educate the public.
Challenge grants are offered for historical building preservation by the National Endowment for the Humanities. The challenge part means that the grant maker requires that the applicant raise two or even three times the amount of the grant they are seeking on their own. These monies are often raised through fundraisers and tours and outright requests for donations. If the applicant can raise the amount of money required, they will be eligible receive grant money for the specific puposes cited in their application with few strings attached.
The National Endowment for the Humanities also makes preservation assistance grants to organizations seeking grants for historic buildings. These funds are made available to help preserve the original integrity and structure of buildings and properties deemed to be important.
Some grants are available for historical buildings dependent on the cultural background of the people who built or used the structure. Native American groups and Hispanic groups are both good examples of cultures that have structures here that need to be preserved for education and for the historical value they have to the country and to the people of those cultures. For a good place to start looking for very specific types of grants use our Quick Guide to the Federal Register.
Grants for Individuals to Preserve Historic Property: You will find that the majority of the grants for historical buildings are only open to foundations and organizations and are not available to private citizens or for profit enterprises. These rules are established so that the for profit enterprises do not get what little money there is available to help the people who do not have any other means of preserving and restoring these amazing properties. However, one type of tax incentive that is potentially available to individuals is the National Parks Services’ Conservation Easement.
A Conservation Easement is basically a contract between the owner of the building and/or land and either a government agency or a nonprofit organization. The property owner sells or donates the easement and retains personal use of the property but gives up any rights to develop it. Owners typically do this to get federal and state tax benefits and in some cases to avoid major property taxes. They also are often motivated by a desire to preserve the property as is and keep it from being developed — forever, since the agreement imposes the restrictions “in perpetuity.” The goal is that the property should always be preserved of the benefit of the public, and all future owners are bound by that agreement.
Conservation Easements are complicated, especially when tax benefits are involved. If they sound promising you should definitely consult a tax attorney to assure that you are making a wise move.
Though few grants are made to individuals as opposed to government agencies or not-for-profit-organizations, there are some other exceptions and it is worth your time to look into them. A good place to start is any historical society in your local area as well as your local government landmarks board. If there are no grants available there may be tax incentives offered by local, state or federal agencies.
For an easy to read overview of resources, see our article on types of grants and where to find them.