Cat as a 501c3 for free dream trips?

[SailorZman]

Hi everyone. I’m exploring buying a used Cat (ie Leopard 39) to then offer week-long dream vacations at no cost to vets, first responders, etc. from BVIs or Bahamas. In my 50s & retired early. I’d welcome comments (or referral to someone) that can speak to registering me/boat as a 501c3 so that folks could help cover costs of providing each trip (and perhaps help defray some of purchase). Would donate my time for 4+ trips/year. Rest of my time on boat would be spent cruising - no for-profit trips planned. Just want to do something that touches my heart. Pleased to answer any Qs as best I can. Thanks.

[redneckrob]

Originally Posted by SailorZman

Hi everyone. I’m exploring buying a used Cat (ie Leopard 39) to then offer week-long dream vacations at no cost to vets, first responders, etc. from BVIs or Bahamas. In my 50s & retired early. I’d welcome comments (or referral to someone) that can speak to registering me/boat as a 501c3 so that folks could help cover costs of providing each trip (and perhaps help defray some of purchase). Would donate my time for 4+ trips/year. Rest of my time on boat would be spent cruising - no for-profit trips planned. Just want to do something that touches my heart. Pleased to answer any Qs as best I can. Thanks.

I would stay away from using donations to purchase a boat you use personally, that s a pretty big no-no. On the other hand, getting donations to do trips is probably fine especially if those go for things like food which are clearly unique to that trip. It's non-trivial to set up a 501c3 or maintain it. You need an independent board, and there are a number of filings required. You probably need to be clearing at least $50k/year in donations if not a lot more to make the tax benefits worthwhile.

I'd recommend that instead you partner with an established non-profit to offer your services. They're already set up to handle it, and you can focus on delivering the service which is probably what you really care about in the end. Good luck, it sounds like potentially a fun and rewarding endeavor.

[NaClyDog]

I don't know anything about American charities but I can say without a shadow of a doubt this could not / would not be run as a charity in Canada.


If it's permitted where you are and if you want to do it then good for you but running it as a charity is a bad idea. This could open you up personally to many accusations - true or not.

[contrail]

Leaving aside any non-profit issues in the US, the countries you plan on doing this in might not take a favourable view. I live in the BVI, and am pretty sure they would look very, very, carefully at this. Not saying that they wouldn't permit it, but you would have to convince them you were not working without a work permit, or doing charters, for starters. No idea about the Bahamas, but I would think that countries with serious charter industries would have some questions.

[Orion Jim]

Originally Posted by SailorZman

Hi everyone. I’m exploring buying a used Cat (ie Leopard 39) to then offer week-long dream vacations at no cost to vets, first responders, etc. from BVIs or Bahamas. In my 50s & retired early. I’d welcome comments (or referral to someone) that can speak to registering me/boat as a 501c3 so that folks could help cover costs of providing each trip (and perhaps help defray some of purchase). Would donate my time for 4+ trips/year. Rest of my time on boat would be spent cruising - no for-profit trips planned. Just want to do something that touches my heart. Pleased to answer any Qs as best I can. Thanks.

You need to consult with a tax attorney to discuss your business plan.

[SailorZman]

Originally Posted by redneckrob

I would stay away from using donations to purchase a boat you use personally, that s a pretty big no-no. On the other hand, getting donations to do trips is probably fine especially if those go for things like food which are clearly unique to that trip. It's non-trivial to set up a 501c3 or maintain it. You need an independent board, and there are a number of filings required. You probably need to be clearing at least $50k/year in donations if not a lot more to make the tax benefits worthwhile.

I'd recommend that instead you partner with an established non-profit to offer your services. They're already set up to handle it, and you can focus on delivering the service which is probably what you really care about in the end. Good luck, it sounds like potentially a fun and rewarding endeavor.

Many thx. Makes sense - my interest is to deliver a memorable experience, not get sealed in admin.

[SailorZman]

Originally Posted by NaClyDog

I don't know anything about American charities but I can say without a shadow of a doubt this could not / would not be run as a charity in Canada.


If it's permitted where you are and if you want to do it then good for you but running it as a charity is a bad idea. This could open you up personally to many accusations - true or not.

Much appreciated. I thought about this aspect as well and want to take steps up front to reduce/eliminate any thoughts of funny business. I’m willing to buy boat with my own $, and donate my time. I just need help with covering the variable costs of delivering each weekly trip. Thx

[SailorZman]

Originally Posted by contrail

Leaving aside any non-profit issues in the US, the countries you plan on doing this in might not take a favourable view. I live in the BVI, and am pretty sure they would look very, very, carefully at this. Not saying that they wouldn't permit it, but you would have to convince them you were not working without a work permit, or doing charters, for starters. No idea about the Bahamas, but I would think that countries with serious charter industries would have some questions.

Thx Contrail. Perhaps by following redneckrob’s suggestion of partnering with an existing/reputable nonprofit I could address any concerns over end runs on work permits. I’ll keep this key issue in mind.

[SailorZman]

Originally Posted by Orion Jim

You need to consult with a tax attorney to discuss your business plan.

Thx Orion Jim. Most def on the list to be sure I understand the limitations/costs/feasibility. I’m liking the patterning idea with existing nonprofit if that’s workable.

[NaClyDog]

Originally Posted by SailorZman

Thx Contrail. Perhaps by following redneckrob’s suggestion of partnering with an existing/reputable nonprofit I could address any concerns over end runs on work permits. I’ll keep this key issue in mind.

Well, that changes things. I have heard nothing but good about these folks.


https://warriorsailing.org/


Cheers.

[Exctyengr]

You would probably need a Captain's License as well

[SailorZman]

Much appreciated. A friend here in SF area shared below local nonprofit. Bay Area Association of Disabled Sailors. I’d like to volunteer here while still in Bay Area. Now have 2 names to start my list of poss partners. Thx.

[SailorZman]

Originally Posted by Exctyengr

You would probably need a Captain's License as well

Agreed. Thx for the reminder.

[tomfl]

Need a lawyer and account to answer these questions; and you should also have a business plan to show them.

Bottom line is this probably won't work.

[jimbunyard]

Mebee you could get sailing listed as a religion...or failing that, discuss it with Steve Bannon...


Seriously though, the partnering idea sounds like a good one.