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In the United States, charitable giving to qualified non-profit organizations is legal but many of the donations sites can leave you with unanswered questions. The IRS encourages financial support of 501C3 organizations. Coral Reef 101 is a Foundation that qualifies as such an entity, under IRS Code 501(c)(3) and the IRS has continued our designation.
Donations to our organization make it possible for us to:
· Work with veterans in rehabilitation programs with special attention to the injuries suffered in defense of our country.
· Provide real training in our classrooms to certify veterans in scuba diving with a PADI Certificate at the end of the training.
· Expand our facilities & training programs as permitted by your generous donations of boats, stock, art, automobiles, aircraft or dive gear.
Your Donation can offer you this:
· Personal satisfaction that you have helped a wounded veteran serviceman or servicewomen adjust to civilian life after the injury.
· A true tax donation not a quick sale that limits your tax benefit.
· A chance to interact and take part in our adventures.
· Pay no expenses in the transfer of your donation.
· A one call solution to your donation.
HOW TO DONATE YOUR BOAT
1. Contact the organization by phone or e-mail. (Include your contact information in your communication).
2. After your inquiry, if we can work with you on your boat, an employee of Coral Reefs 101 will contact you to set up an appointment to look at the vessel to determine the suitability of the vessel to use it in our training programs.
3. The new tax law pertaining to the donation of boats, cars, and airplanes that is embedded in the “American Jobs Creation Act of 2004” has generalized guidelines and rules. The IRS details on donations will be provided to you.
4. For boats valued over $5,000, the amount of your deduction will depend on how the Coral Reefs 101 uses your vessel. We will not offer to take your boat if it cannot be used in our programs. That is the real deal about boat donations. With Coral Reefs 101 you get the maximum donation possible
5. If you want to donate a boat to be sold outright, here is what you should consider:
Some donated vessels can be sold to generate cash to help pay for training programs and dive events as well as facilities or operational expenses. For this type of vessel, your charitable deduction cannot exceed the gross proceeds from the sale. When the vessel is sold, the Organization will provide you with an “Acknowledgment Form” (contemporaneous Acknowledgment) stating the amount of the sale along with other IRS required statements and information within 30 days. You are required to submit the “Acknowledgment Form” with your tax return. In addition, the Organization is required to provide the IRS with a copy of the “Acknowledgment Form” within 30 days. Coral Reefs 101 will not fire sale your vessel but rather work hard to get a good price for the vessel as well as selling it in a timely manner. You still win and have done a service to those that have protected your freedom.
- Vessels Used in Training Programs
For those vessels that are used in our Dive programs, we will provide you with an “Acknowledgment Form” advising you of the intended use of the vessel and the planned duration, of two years, along with other IRS required statements and information within 30 days.
a. For boats valued over $5,000 but less than $500,000 a “qualified appraisal” is required to be kept in your personal files for proof of substantiation of value. We can provide a list of independent appraisers to assist you in obtaining an appraisal. Coral Reefs 101 will provide a “Value Form” listing pertinent information to accompany your tax return, i.e. name, tax ID# (social security number), brief vessel description, appraisers name, address, ID# of the boat, and appraised value.
b. For boats valued over $500,000 a “qualified appraisal” is required and must be attached to your income tax return when filed.
c. Arrangements will be made for delivery and transfer of ownership. Transfer of ownership is simple whether the vessel is titled, registered or documented.
The intention of the above information is not to give tax advice because we are not tax accountants or CPA’s but to have a working model to aid in the donation process. For this reason we urge all prospective donors to consult with their tax accountants or advisor's before making any donation that they plan to take a charitable contribution. The official name of the Organization as listed with the IRS is Coral Reefs 101 Foundation.
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