The United States of America Congress has repeatedly knowledged the benefit of charitable contributions.  They have knowledged that charitable contributions by the citizens enhance the welfare of our nation.

This year alone citizens of the United States contributed over $300 billion.  Making us the most charitable nation in the entire world.

Because of this Congress has enacted laws which encourage Americans to contribute to federally recognized nonprofit organizations.

There is been much discussion about the changes made to the rules concerning the donation of vehicles, boats and airplanes(the job creation act of 2004) We here at American Foundation Funding enbrace these changes.  Because we finally have guidelines in areas of question.

Under the new law, adopted for charitable contributions of vehicles, airplanes and boats, for which the claimed value exceeds $500 will depend on how the asset is used by the charity. If they donee organization sells the asset without any significant intervening use or material improvement, the donor's deduction is limited to the gross sales proceeds received by the charity.

But if the donee organization uses the asset to further its charitable purpose the donor may deduced the fair market value of the asset.

According to the IRS the donor not the donee organization must determine the fair market value(appraisal from accredited marine surveyor).

To substantiate the deduction the donor must receive a written contemporaneous acknowledgment within 30 days from the date of the donation from the donee organization.  This written letter must include the donor's name, tax ID number, the assets identification number and a statement from the charity as to intended significant intervening use or significant improvements to be made to the asset.

If the charity sells the asset without any significant intervening use or improvement the charity must send a written acknowledgment to the donor of the sale certifying that the asset was sold by an arm's length transaction between a buyer and seller.  This acknowledgment is to include the gross proceeds of the sale and let the donor know that their donation is limited to the gross sales proceeds.

Now that may seem very daunting if you're reading it for the very first time.  But in layman terms what this means is if you donate your boat and claim a value and the charity you've donated to does not use the vessel in their programs or make capital improvements to the programs have to report it to the IRS.

At American Foundation Funding we want to make sure that your contribution is protected so we have developed what we call our “Contribution Protection Plan”.

Our plan is to guarantee in writing that your vessel contribution only goes to charities that will use the vessel in their programs. We will also provide the contributor a log book of all the programs run on or with there vessel. 

We feel that by offering these two protections to our donors meets all the requirements of the new IRS guidelines.

So call us today to discuss the advantages of a yacht contribution. 954-642-8818