Donations to the Sea Scouts

Facts about donations

If you are considering disposing of your yacht or other property, it may be more beneficial to you to donate it to the Boy Scouts of America 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 the Boy Scouts of America 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 therefore, 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 the Boy Scouts of America to your best advantage. Then call or write a local Scout council or Sea Scout Ship.

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, J 35, Beneteau or similar vessel is strongly desired to serve as a flagship for the sail training program. A fiberglass cabin cruiser 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 training 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, 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.

Donations to local Boy Scout councils are not the only way for a donor to directly benefit the Sea Scout program of the Venturing Division of the Boy Scouts of America. Most Sea Scout Ships are sponsored by local organizations such as churches which are in themselves qualified charities for IRS donation purposes.

Please contact your local Scout council or Sea Scout Ship to learn more about their donation programs and to see how your gift may benefit the leaders of tomorrow.

Disclaimer

The foregoing information is believed to be accurate as of the time of the creation of this document on 8 April 2003. 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.