If you are considering disposing of your yacht or other
property, it may be more beneficial to you to donate it to Ship 109 than
to go through the possibly long and costly process of selling it.
The
government allows charitable contributions for gifts of property, such as
yachts, real estate, securities and cash donations to a qualified
institution such as the Sea Scouts. Tax reforms enacted by Congress in
1986 provide for tax benefits of up to 38.5 percent of the value of the
contribution for 1987, and up to 33 percent of the value of the
contribution for 1988 and beyond. Part of this deduction may be able to be
carried forward if it can not all be used in the year of the contribution.
The amount of the deduction depends largely on your tax bracket and
whether the gift is related to the function of the charitable
organization. It is important that you discuss the various aspects of this
tax deduction with your tax advisors.
The government, in recognition of our service to youth, qualifies Ship
109 under IRS regulations and gives the donor the fullest benefits for
such gifts. We will be delighted to meet with you or your advisors to
arrange a mutually beneficial donation.
There are other special benefits that apply especially for yacht
donations:
An important advantage to those giving a yacht is
avoiding the length of time usually involved in selling, particularly a
yacht of unusual design or considerable value.
It eliminates the need of expensive maintenance to
keep a yacht in good condition or to pay dockage, storage fees, etc.
A yacht donation is related to the function of the
Boy Scouts of America and will be placed into our fleet therefore; you
should receive the full tax benefit.
Compliance with a donor's request is assured with
protection of his interest.
In addition to the tax benefits, you can take
satisfaction in your contribution of a gift that helps extend Scouting.
How to Proceed
Your first step is to decide that you would like to help
Ship 109 to your best advantage. Then
email our Procurement Officer to setup a call or meeting.
The
mechanics of the donation are relatively simple. If the gift is titled and
registered, the owner transfers ownership by signing at the appropriate
location on the title and filling out and signing a Deed of Gift. If the
gift is a documented yacht, a Deed of Gift, which is similar to a Bill of
Sale for a documented vessel, must be executed. Title is transferred to
the receiving organization on the date of the Deed of Gift. The Sea Scouts
have experience in handling contributions and will gladly provide the
required forms and assist you with the paperwork.
What Type of Gifts are Needed?
Any seaworthy vessel from a rowboat or sailboard to large
yachts or commercial vessels can be used. A large fiberglass sloop, J24,
Pearson or similar vessel is strongly desired to serve as a flagship for
the sail training program. A cabin cruiser, ski boat or ex-Navy/Coat Guard
ship is strongly desired
to serve as flagship for the powerboat training program.
Many other types of gifts can be utilized
in establishing and maintaining a sea base. Contributions of real estate
(preferably waterfront) and equipment would be used to set up the sea
base, while buses, trailers and recreational vehicles could be used in the
operation of the year round program.
How are the Gifts Used?
100% of all donations directly support the program. Yachts donated to
the Sea Scouts will be put directly into the fleet if possible. When
donated vessels do not fit the training program, they may be sold at some
future date based on tax laws related to the length of ownership by the
Ship, and the income will be applied to the program. No part of your
contribution is used to compensate any adults involved in the program.
Volunteer leaders pay their own fair share of all expenses such as food,
fuel and dockage. They must also obtain the required boating license and
certifications at their own expense. Similarly, no donated funds are used
to provide salaries, pension plans, medical plans or other benefits to
those who manage the program.
If the
total claimed value of all property contributed exceeds $500, you must
submit IRS Form 8283, NonCash Charitable Contribution, with your tax
return. If the claimed value of one item or group of similar items, other
than publicly traded securities, exceeds $5000, you must obtain a
qualified appraisal and have Section B of Form 8283 completed by the
appraiser and the donee organization. The appraiser must certify that his
relationship to the donor and donee is such that a reasonable person would
not question his independence as an appraiser. He must also declare that
he holds himself out to the public as an appraiser, that he is qualified
to make appraisals of the type of property being valued, and that the
appraisal fees were not based upon percentage of the appraised property
value.
Disclaimer
The foregoing information is believed to be accurate as of the time of
the creation of this document on 29 January 2005. Tax laws change from
time to time, however, and therefore this document should not be regarded
as legal or tax advice, nor is this document intended to provide such
advice. For that purpose you should consult a qualified tax or legal
professional. It is recommended that you take this document with you when
you consult with your qualified tax or legal professional to serve as a
basis for your further discussion.
