FundSvcs Community

 View Only

  • 1.  Hours on Private Jet - In Kind Donation?

    Posted 10 days ago

    We recently received a donation of 15 hours on a private jet (JetCards - ONEflight International). My feeling is that this could be considered an in kind donation. Is that correct?



    ------------------------------
    David Glasser
    Union College (NY)
    glasserd@union.edu
    ------------------------------


  • 2.  RE: Hours on Private Jet - In Kind Donation?

    Posted 10 days ago
    Not a gift, David, if it's the plane owner giving you the hours (just like an airline can't give you tickets as gifts). That falls under the heading of "partial interest."

    If someone unrelated bought the time and gave it to you, that could be considered the gift, although I don't know that it would pass the IRS "size of class" test. How could those hours benefit the mission of the college and be made available to the entire College?

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Hours on Private Jet - In Kind Donation?

    Posted 10 days ago
    I think this is still a donation of services, and not deductible. It's like a hotel room - I can't book it, then donate the stay, and take a tax deduction. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 4.  RE: Hours on Private Jet - In Kind Donation?

    Posted 5 days ago
    Hi John,

    The counter argument I'm getting is around frequent flier miles - but those aren't a gift either, right?

    What IRS regulation does this tie back to?

    Thanks,

    David

    David Glasser
    Executive Director
    Admissions & Advancement Systems & Services
    Union College
    807 Union Street
    Schenectady, NY 12308
    Phone: (518) 388-6561
    He/Him





    Original Message


  • 5.  RE: Hours on Private Jet - In Kind Donation?

    Posted 5 days ago
    No, FF miles aren't either but for a different reason. They have a $0.00 cost basis.

    The partial interest and service rules are outline in IRS publication 526.

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





    Original Message


  • 6.  RE: Hours on Private Jet - In Kind Donation?

    Posted 5 days ago
    There are several reasons why FF miles don't qualify as a gift. One is that they have a $0 cost basis, so the donor has nothing to deduct. Another reason is that the IRS views FF miles as a transfer from the airline to the charity, not from the donor because the donor does not have property rights in the miles. Accordingly, the IRS does not tax you when you accumulate the miles, either, since they do not treat them as income. 

    After some more reflection, I think the specific type of private jet hours card you describe could be an in-kind gift, akin to a gift card for Uber or Lyft.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 7.  RE: Hours on Private Jet - In Kind Donation?

    Posted 5 days ago
    Not really, Isaac. If it is owner of the jet or vehicle they cannot claim any deduction. But if as a non-owner I purchased time and donated it, that could be a gift as I would be conveying 100% of my stake in the donation.

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





    Original Message


  • 8.  RE: Hours on Private Jet - In Kind Donation?

    Posted 5 days ago
    Agreed - in this case, the jet card we're discussing is not actual fractional jet ownership, it's purchased time. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


Related Content