NATIONAL SAVE THE SEA TURTLE FOUNDATION FAQS
Benefits of a Donation to NSTSTF
DEDICATED TO GUARANTEE THE SURVIVAL, RESTORATION AND PROTECTION OF ENDANGERED SPECIES IN OUR OCEANS - EDUCATION! AWARENESS! PROTECTION! EXTINCTION IS FOREVER!
Please note that, in most cases, we can arrange to purchase your yacht for cash and a deduction!
In 1984, the Congress and Internal Revenue Service modified the charitable contribution rules. The modifications became effective January 1, 1985. For the most part, the modifications clarified the rules applicable to the donation of property. The NSTSTF management and the NSTSTF Tax Advisory Committee have studied the new rules and developed the following questions and answers on charitable deductions to assist you as a potential donor.
How does a yacht contribution work?
The mechanics of a yacht contribution are relatively simple. If the yacht is titled and registered, the owner signs the title and/or registration on the back of the document where the word "SELLER" appears and signs a Deed of Gift. If the vessel is documented, the owner must also execute an appropriate Deed of Gift which is similar to a Bill of Sale for a documented vessel. Title to the vessel is transferred to the receiving organization on the date of the Deed of Gift. NSTSTF has had years of experience in handling yacht contributions and will gladly assist you with the paperwork.
What size boats can be donated to NSTSTP
We concentrate our efforts to obtain vessels that can be used in our programs, 30 FT. to 100 FT. in power and sail, however we welcome all contributions. The donor's tax benefit depends on the fair market and or appraised value of the vessel donated.
What specific federal income tax requirement do I have as a donor?
Generally, if you claim a charitable deduction of more than $5,000 for any item of property (other than money or publicly traded securities) or for a group of similar items of property, you must:
a. obtain a qualified appraisal
b. attach a fully completed appraisal summary to the tax return on which you first claim the deduction for the contributed property (the IRS supplies a form which must be completed and used for the appraisal summary)
c. maintain records required by IRS regulations to document the gift, including records showing the cost basis and acquisition data of the property.
What is a qualified appraisal?
A "qualified appraisal" is an appraisal document that:
a. relates to an appraisal made not earlier than 60 days prior to the date of the contribution
b. is prepared, signed and dated by a qualified appraiser
c. includes the information required by IRS regulations
d. was made by an appraiser whose appraisal fee was not based on a percentage of the appraised value of the property.
The qualified appraisal must be in the hands of the donor before the due date (including extensions) of the donor's tax return on which the contribution deduction is claimed, and must be prepared by a qualified appraiser.
Who is a qualified appraiser?
A "qualified appraiser" is an individual who includes the statement required by IRS regulations in the appraisal summary. The appraiser must not have had knowledge of facts which would cause a reasonable person to expect the appraiser to falsely overstate the value of the donated property.
The appraiser must not be the donor, the taxpayer, the donee, a party to the transaction in which the donor acquired the property, any employee of the above, any person related (as defined by IRS regulations) to any of the above, or any person whose independence as an appraiser would be questioned by a reasonable person. A dealer, yacht broker, yacht salesman or marine surveyor may be a qualified appraiser if he meets the above requirements.
What is a qualified appraisal summary?
A "qualified appraisal summary" is a summary of the appraisal, which:
a. is prepared on the form prescribed by the Internal Revenue Service
b. is signed and dated by the donee
c. is signed and dated by the qualified appraiser who prepared the appraisal
d. includes the information required by IRS regulations.
Who pays the cost of the appraisal?
The donor is responsible for all appraisal fees. These fees cannot be based on a percentage of the appraised value.
If I contribute my boat to NSTSTF, how much can I claim as an income tax deduction this year?
You can claim a deduction equal to the fair market value of your vessel subject to limitation. In general, the contribution base for determining the maximum amount you may deduct in a particular year is your gross income for federal income tax purposes without regard to any net operating loss carry-back to that year. Charitable gifts to NSTSTF and other qualified tax-exempt organizations may enable you to claim charitable deductions in an amount up to 50 percent of your contribution base.
Can I donate my yacht to just any charitable organization?
Yes. However, gifts to other organizations may not give you the same tax benefit. Contributions of boats to some organizations may be deductible in the year of the gift only up to 20 or 30 percent of your contribution base.
Why should I contribute my vessel to NSTSTF in lieu of donating it to any other non profit organization?
Anyone owning a boat is aware of the changes in our environment, pollution and population has taken its toll. It makes sense to contribute to an organization that concentrates cleaner and safer waterways and educates our youth to serve our fragile environment. You may ask yourself what environment will my children be boating in, in the year 2000.
My boat belongs to my corporation. Would it be advantageous for my corporation to contribute the vessel?
The government allows a charitable deduction again corporation's taxable income. However, because of the number of alternatives available, the subject of corporate contributions is complex. Consideration must be given to a number of factors, including the profitability of the corporation, the type of corporation (for example, Subchapter S), diversity of stock ownership, nature of the corporate assets, and finally, whether the boat has been depreciated. We would glad to discuss your particular situation with you or your tax advisor.
If the recipient organization later decides to sell the vessel, what bearing will this have on deduction?
The design of our youth program requires us to use a number and variety of boats. NSTSTF normally retains ownership to all contributed vessels for a minimum of two years. Thus, for vessels donated to NSTSTF, the question generally is not relevant. However, if for some unforeseen reason, NSTSTF is compelled to sell or dispose of the vessel within two years after the date of contribution, the new IRS regulations require that we file an information return with the within 90 days after the sale or disposition and furnish a copy of the return to you.
It has always been NSTSTF's policy to retain ownership and use for a minimum period of two years as many donated boats as possible to meet the needs of its youth educational programs. Should it become necessary for NSTSTF to the boat you donated within a two-year period, you will be notified.
How has the IRS treated contribution NSTSTF in the past?
NSTSTF has an excellent reputation with the IRS. Its me of handling contributions has been scrutinized on occasion and has always been found acceptable to the IRS.
How do I really know if it is financially feasible for me to contribute my boat?
NSTSTF strongly recommends that any boat owner considering making a contribution consult his tax advisor. Some factors you must consider are: length of time the boat been on the market, maintenance, insurance, dockage personnel costs; and, the fact that a 10 percent brokerage commission will be payable if your boat is sold through a yacht broker. One of the chief advantages of a boat contribution is the speed with which an owner can divest himself of his boat and relieve himself of the responsibility for the vessel "as is, where is". You may find as others have, that the contribution your boat to NSTSTF can IMMEDIATELY ELIMINATE YOUR OWNERSHIP COSTS AND CONSIDERABLY REDUCE YOUR INCOME TAX BURDEN.
If I decide to contribute my vessel to NSTSTF, how do I get the ball rolling?
The initial step is to contact NSTSTF by clicking on and submitting the form below. We will make arrangements to inspect the vessel and discuss the contribution with you. Experienced NSTSTF personnel will be happy to assist you during the contribution process.
What is NSTSTF?
The primary objective and purpose of NSTSTF is to preserve the environment. The oceans and waterways nationwide. Our programs include educating today's children so their children can enjoy the environment as we enjoy it today. NSTSTF
supports volunteer groups nationwide that are active in the fieId. Hundreds of organizations involved in preservation, research and education rely on our support. Much of that support is derived from the corporate and private sector in our yacht donation program.
How successful are the foundations?
NSTSTF efforts to preserve the environment and educate children has become nationally recognized, supporting hundreds volunteer groups in the United States, Canada and abroad.
What are the advantages of a boat contribution?
- You will be supporting a nationally recognized youth educational program that has achieved significant positive results.
- You will be relieved of the considerable expense of continued boat ownership, including storage, maintenance, insurance and depreciation.
- You will be entitled to claim a charitable deduction on your federal income tax return.
The Federal Government recognizes that gifts to religious, educational, charitable, scientific and literary organizations have contributed significantly to the welfare of our nation and our tax laws are designed to encourage such giving. You are entitled to take a charitable contribution deduction, subject to certain conditions and limitations, on your income tax return for genuine gifts of cash or property to qualified organizations.
Is NSTSTF interested in receiving other types of contributions?
Yes! In order to improve and assist a growing number of youth, NSTSTF has a continuing need for all kinds of contributions, and we are happy to accept contributions of real estate, vehicles, airplanes, various types of equipment, and marketable securities, i.e. stocks, bonds, cash, etc.
National Save The Sea Turtle Foundation
Mote Marine Laboratories
Marine Life Center of Juno Beach
Historic Sites & Shipwrecks Society
Museum of Discovery & Science
Save The Manatee, Club
International Marine Research Institute
Rachael's Children International, Ltd.
World Wildlife Federation
Coral Springs Nature Center
Humane Society of the U.S.
Humane Society of Broward County
Animal Protection Institute
National Foundation For AIDS Relief
Marine Industries Assc. of South Florida
Save Our Sealife Committee
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