Is this a "Charitable Flight"?

[BizPilot]

FAR 91.146 defines a Charitable Flight as the following:

Charitable event means an event that raises funds for the benefit of a charitable organization recognized by the Department of the Treasury whose donors may deduct contributions under section 170 of the Internal Revenue Code (26 U.S.C. Section 170).​

So if I do the following, is it "charitable"?

1) My company sells raffel tickets to its employees
2) The funds from the raffel tickets only goes to offset my expenses of the flight. (Proceeds are not being donated to charitable organization)
3) A local sight-seeing flight is given to a child from Make-a-Wish foundation.
4) The employee who wins the raffel ticket drawing gets to ride on the flight too.

No funds are being donated, the raffel proceeds are only being used to offset my flight expenses.

Does this fall under 91.146 - Chartiable Flight?

 

[NW_Pilot]

FAR 91.146 defines a Charitable Flight as the following:

Charitable event means an event that raises funds for the benefit of a charitable organization recognized by the Department of the Treasury whose donors may deduct contributions under section 170 of the Internal Revenue Code (26 U.S.C. Section 170).​

So if I do the following, is it "charitable"?

1) My company sells raffel tickets to its employees
2) The funds from the raffel tickets only goes to offset my expenses of the flight. (Proceeds are not being donated to charitable organization)
3) A local sight-seeing flight is given to a child from Make-a-Wish foundation.
4) The employee who wins the raffel ticket drawing gets to ride on the flight too.

No funds are being donated, the raffel proceeds are only being used to offset my flight expenses.

Does this fall under 91.146 - Chartiable Flight?

Make sure the Raffle is legal first!

 

[JimNtexas]

" No funds are being donated, the raffel proceeds are only being used to offset my flight expenses."

That sounds a whole lot like you are flying a charter.

Is your plane so expensive to fly that you couldn't just fly the winners and donate the funds to the charity?

Then you comply with the FAA rule, and you could deduct your direct costs from your tax return if you itemize.

 

[BizPilot]

It's not "Charter". Not even close, buddy. The flights originate and return to the same airport.

Yes, the Raffel is "legal".

You miss to see my point. If you understood FAR 91.146, you would understand why I don't just want to do it under this regulation. It restricts charitable flights to 4 per year. I want to do one PER MONTH throughout the year (12 a year). If the money is donated to the charity, then I can only do 4 flights. If the money goes to the expenses of operating the aircraft, then I assume I can do as many as I want to.....but that is what I'm trying to find out, instead I get a bunch of smart-arse replies.

 

[NW_Pilot]

Yes, the Raffel is "legal".

Have you even looked up your states regulations on raffles? I know in my state it is controlled by the states gambling commission,

http://www.wsgc.wa.gov/default.asp

http://www.wsgc.wa.gov/faq/raffles_faq.asp

From my research most other states also have rules and regs regulating raffles it is a game of chance and considered gambling and you may be required to have a permit, be licensed, specific rules for your organization.

 

[JimNtexas]

Here's the EAA article on the subject:

http://www.eaa.org/chapters/resources/drugtest_exemptions.asp

Are these flights part of an 'event' that has been registered with your friendly neighborhood FSDO?

I don't think the raffle part of it is relevant to the FAA. The event needs to be registered and your compensation can't exceed the cost of operating your plane for that flight. Your flight is limited to 25nm.

I looks like the four flight limit may be per charity, so perhaps you can justify 4 'paid' flights per charity, if you have more than one charity that sponsors this kind of event.

I fly Angel Flights. I turned down free gas shortly after Katrina, I just didn't want to go there.

I don't find the cost of a flight to be great enough to be worth liability exposure and possible FAR questions that taking compensation for a flight will entail. Your mileage may vary.

 

[Lead Sled]

FAR 91.146 defines a Charitable Flight as the following:

Charitable event means an event that raises funds for the benefit of a charitable organization recognized by the Department of the Treasury whose donors may deduct contributions under section 170 of the Internal Revenue Code (26 U.S.C. Section 170).​

So if I do the following, is it "charitable"?

1) My company sells raffel tickets to its employees
2) The funds from the raffel tickets only goes to offset my expenses of the flight. (Proceeds are not being donated to charitable organization)
3) A local sight-seeing flight is given to a child from Make-a-Wish foundation.
4) The employee who wins the raffel ticket drawing gets to ride on the flight too.

No funds are being donated, the raffel proceeds are only being used to offset my flight expenses.

Does this fall under 91.146 - Chartiable Flight?

I really doubt it. Last year the boss wanted to do something similiar with the jet and we bounced it off of the aviation attorney that we use to keep our noses clean when questions like this come up. We weren't even going to use any of the procedes to recoupe the expenses - we were going to donate everything. The answer was pretty complex, but it boiled down to no, we couldn't do it unless we had a 135 certificate. Once upon a time you could probably have done it, those days are gone and it's not worth the risk. You'll get an hour or two of flight time - maybe. But you have the potiential to stir up a hornets nest with the FAA. It's simply not worth it.

Just my opinion.

LS

 

[JimNtexas]

LeadSled you might want to contact the Corporate Angel Network or Angel Flight. It certainly is legal to transport a passenger recommended by a charity from A to B. Both these organizations have studied the law on this and worked with Congress, the FAA, and the IRS to be sure they are correct. I haven't done a Young Eagle flight, but I'm pretty sure the EAA has that program all figured out and legal.

Both the IRS and FAA have agreed in writing that its ok to deduct the direct costs of such a flight from your income taxes, that isn't 'compensation' as far as the FAA is concerned.

After Katrina, Angel Flight South Central did get some fuel donated, and I know they were working on a way to make this a formal part of the program.

I'm not sure where they are with that now, and as I said I just didn't want to get involved with anything that could look like a flight for compensation so I passed on it.

 

[Lead Sled]

We flew several flights from the west coast to Lousianna and Mississippi in support of the Hurricane Katrina relief efforts on behalf of Angel Flight and another relief organization. We are currently getting involved with the corporate angel network. I agree, that is not an issue and we support and participate in those kinds of operations.

As I understood the question, there was to be a raffle, monies collected, expenses paid, and people loaded into an airplane and flown somewhere. This is where the waters can get pretty murky and you expose yourself to many potiental snares including the whims and pet peaves of the local Feds. Like I mentioned, our boss wanted to do something very similar for a charity fund raiser. We bounced it off our aviation attorney (a VERY experienced and savvy one) and he put the cabosh on the idea. As I remember, there were some complex issues involving operational control that really made it difficult to do legally. Organizations such as Angel Flight and Corporate Angel Network have legal opinions from the FAA and IRS to support them. Some local hometown organization that decides that it would be nice to raffle off an airplane ride or two doesn't.

The problem with doing things like this is that if anything happens or if you happen to draw the short straw and get ramped you're going to be exposed to the infamous FSDO anal probe and body cavity search. Those things have a way of getting really messy, not to mention expensive - legal defense always is. Oh, did I mention that you need to discuss this with your insurance company as well - they might have an opinion about it also. When you weight the potienial liability and exposure to the possiple benefit it's probably not worth it just to get someone else to pay for an hour or two of flight time.

Those are just my opinions, results are not typical, your results may vary and the preceding editorial opinion may not be one of a sane and ration human bean. Buyer beware, yada, yada, yada...

LS

 

[Hung Start]

Sorry about this not dealing with the IRS side of things, but don't you also have to comply with the FAA drug test policy, even though it is a charity?

One more nail to drive.

Hung