Donate a Boat to Charity
When people sail home to port a boat, they might not have considered what will happen if the boat comes of age and becomes no longer appealing to their palate. By that time they have to find a dock that can accommodate their ailing “Flying Dutchman” and pay rent for the dock; if they’re lucky to have a space in their yards, at least they have to pay for some maintenance. They can forget about selling their boats because in this economy, an old boat is the least favorite investment.
If you’re planning to buy your first boat, though, don’t despair because there’s a perfect solution for an old boat problem: donate a boat.
What is Boat Donation
Donate a boat to charity is not new to pro boat owners. It’s what allows them to buy new boat to replace their old ones; it’s what allows them to keep their privileged hobby of sailing a boat. If they choose a good charity, their donating a boat gives them more advantage than a heavy heart of handing away once priced possession.
What are the Benefits of Boat Donation
If you donate a boat to charity by the help of legitimate people or agency then the benefits definitely outweighs the disadvantages by more than a nautical mile. Here are just few of them:
- You’re entitled for a tax deduction equivalent to the fair market value of the boat. This is a basic right of everybody under the IRS tax laws.
- You’ll stop spending on expensive boat dock rent, or you’ll free up extra space in your yard.
- Your boat donation will go a long way for other people.
- Depending on the charity or agency, you might be given extra privileges by getting rid of your old boat.
But with the good there’s always the bad; there are things you have to watch out for if you’re planning to donate a boat.
What are the Pitfalls of Boat Donation
To ensure that you’re good intentions of donating a boat goes to the right recipient you have to know how to avoid some pitfalls when you donate a boat to charity. These are the following:
- Avoid questionable middlemen or agency because most of the time a large chunk of your boat’s proceeds will just go to their coffers. Contact an admirable charity near you instead, and ask them if you can donate a boat to them.
- Avoid giving a middleman or agency total control of the donation, if their services can’t be avoided. Be sure you ask how much they are giving to charity because if they’ll give less than $500 you’ll not be eligible for tax deduction. If they plan to refurbish the boat and give the charity a fixed amount per month out of the money they make from your donated boat, you’re also not eligible for tax deduction.
What Can You Do to Mitigate the Pitfalls
There’s a simple way you can avoid the pitfalls when planning to donate a boat to charity. Make sure you’re choosing the right middleman or charity; make a quick call to the Better Business Bureau to check its record.
Where to Look for Legitimate Charities
To help you find a legitimate charity to donate a boat to, you can start by searching the IRS’s list of eligible charities. The IRS regularly published a list of these charities on their Publication 78, which is accessible to the public 24/7. Lastly, take some time to know each charity to help you choose one that is close to your cause. This way when you donate a boat to them you’ll not only go home thinking your problem is solved, but you also help other people that you care about solve their problem too.
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