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Old May 5th, 2012, 01:58 PM   #1
Fearless Tower Fearless Tower is online now
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And yet another compensation question...

Any of the POA Brain Trust care to offer comments on this:

Here is the scenario -
Pilot owns an aircraft and wants to offer rides for a suggested donation.
All of the money obtained from rides goes to a completed separate non-profit/charity organization. No money is retained by the pilot/owner.

What is required to make this Kosher? Obviously there are several government regulated aspects at play (IRS/FAA/Insurance..etc)

Specific questions:
-Can said rides be done under a non-commerial insurance policy?
-Must the owner register as a 501c3 organization?
-Any interpretations on how the FAA sees such an operation?
-Can the owner take any tax deduction for the operating costs that are specifically associated with the rides in question?

Just trying to get a general idea on how feasible this idea is.
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Old May 6th, 2012, 09:08 AM   #2
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Re: And yet another compensation question...

Quote:
Originally Posted by Fearless Tower View Post
What is required to make this Kosher?
From an FAA perspective, compliance with 91.146.

Quote:
Obviously there are several government regulated aspects at play (IRS/FAA/Insurance..etc)
While the government does regulate insurance, there are no government insurance regulations involved here, just what it says in your policy.

Quote:
-Can said rides be done under a non-commerial insurance policy?
depends on your policy, but I believe most allow it.
Quote:
-Must the owner register as a 501c3 organization?
No, but the charitable organization must be IRS-recognized. There are also limited allowances for "community" and "nonprofit" events -- see 91.146 for details.

Quote:
-Any interpretations on how the FAA sees such an operation?
There are three interpretations involving 91.146 since these rules were moved from 61.113 to 91.146 and rewritten a few years ago. Search for 91.146 and you'll find them.
http://www.faa.gov/about/office_org/...x.cfm?print=go

Quote:
-Can the owner take any tax deduction for the operating costs that are specifically associated with the rides in question?
Yes. That is legal by both the FAA and IRS.

Quote:
Just trying to get a general idea on how feasible this idea is.
Very feasible within the four event per year limit in the regulation.
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Old May 6th, 2012, 10:21 AM   #3
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Thanks Ron!


Sent from my iPad using Tapatalk HD
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Old May 6th, 2012, 11:22 AM
Posted in reply to Fearless Tower's post starting "Thanks Ron! Sent from my iPad..."
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Bob Bement Bob Bement is offline
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Re: And yet another compensation question...

Don't the pilot that is giving the rides have to have a certain number of hours, 250 or 500 is a couple of numbers that come to mind.
I know this doesn't come under compensation, but part of this project.
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Old May 6th, 2012, 11:27 AM   #5
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Re: And yet another compensation question...

Quote:
Originally Posted by Bob Bement View Post
Don't the pilot that is giving the rides have to have a certain number of hours, 250 or 500 is a couple of numbers that come to mind.
I know this doesn't come under compensation, but part of this project.
That is covered in 91.146. Minimum Private, and 500 hours of flight time if not CP or better.
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