Charitable Flight Questions

[flywithastick]

I've been thinking lately about trying to do some more Angel Flights. I made several of them a few years back that were pretty reasonably priced. Basically, a buddy and I split the rental of a twin. We also deducted the expenses and our time (both commercial pilots) from our income tax. This dropped the cost substantially. Unfortunately, my buddy now has other things keeping him busy.

Here are a couple of questions I've come up with since:

1. Anyone ever solicited donations to help rent a plane for a charitable flight? Those twins (my preferrence for night, IMC possible flights) are expensive to rent!

Example - Like a pledge, I (the donating pilot) will pay $1, the charitable donor will match a $1. Is a 3rd party donation like this tax deductible? I would think so.

2. Anyone ever hear of a bank or charity as an independent treasury or escrow holder?

3. How about borrowing a plane? Can the owner write off a fair rate for the plane when loaned out for this type of flying?

4. Last, anyone see any issues with this plan? Better ideas?

We talked with the local FSDO about our previous arrangement and possible "non part 91" issues, and they didn't care at all. Would have to ask about 3rd party payees and see what their take would be.

 

[midlifeflyer]

>Anyone ever solicited donations to help rent a plane for a charitable flight? Those twins (my preference for night, IMC possible flights) are expensive to rent!

This issue came up in my Angel Flight wing a few years ago. My answer (FWIW) is that you can't do it. Receiving any reimbursement (read compensation) for rental fees will make the operation cross the thin line between operations that can be done with a private certificate and those requiring a commercial certificate and the even thinner line between Parts 91 and 135.

Keep in mind the history of the situation. Originally FAA Legal took the position that Angel Flight was a Part 135 and maybe even a Part 121 operation because it was arranging passenger-carrying flights. On top of that, the "compensation" to the pilots was the charitable deduction. This opinion was pretty much consistent with positions that FAA Legal previously took on both "holding out" and "compensation" issues.

Fortunately, the FAA reversed it's position, but not through a change in the legal analysis, but "as a matter of policy". I suspect that there was some political pressure brought to bear (Senator Phil Gramm was the recipient of the original "bad" opinion), and the FAA didn't want to be seen as standing in the way of something that everyone thought was a good thing.

But the "matter of policy" was limited to the tax deduction issue. From the April 1993 retraction Legal statement:
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As a matter of policy, taking into consideration the fact that Congress has specifically provided for the tax deducibility of some costs of charitable acts, we will not treat charitable deduction of such costs, standing alone, as constituting "compensation or hire" for the purpose of enforcing [Paragraph] 61.118 or Part 135. If taking a charitable tax deduction for transporting persons or property is coupled with any reimbursement of expenses, or other compensation of any kind, then this policy does not apply."
==============================

The policy eventually found its way into FAA Order 8400.10, the Air Transportation Operations Inspectors Handbook

 

[105viking]

look around. you may be able to find some one who will donate use of their plane. that would be my first move. call AF. they should be very glad to help you stay on the right side of being legal, as i am sure the questions you may ask have been asked before. additionally, they usually have some one available that can "advise" you on the tax issue. however, keep in mind that advice is just that (with taxes and FARs).

105viking

 

[midlifeflyer]

look around. you may be able to find some one who will donate use of their plane. that would be my first move.

Excellent suggestion!

 

[Fast8945]

Has anyone had media onboard during a angel flight? My friend and I want to shoot a documentary about angel flight.

Thanks....

 

[flywithastick]

Excellent suggestion!

I have a line on one. Hence question 3 above. I want to have the answers to the questions before approaching this guy. thanks