And yet another compensation question...

Discussion in 'Hangar Talk' started by Fearless Tower, May 5, 2012.

  1. Fearless Tower

    Fearless Tower Touchdown! Greaser!

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    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.
     
  2. poadeleted20

    poadeleted20 Deleted

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    From an FAA perspective, compliance with 91.146.

    While the government does regulate insurance, there are no government insurance regulations involved here, just what it says in your policy.

    depends on your policy, but I believe most allow it.
    No, but the charitable organization must be IRS-recognized. There are also limited allowances for "community" and "nonprofit" events -- see 91.146 for details.

    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...ion/agc200/interpretations/index.cfm?print=go

    Yes. That is legal by both the FAA and IRS.

    Very feasible within the four event per year limit in the regulation.
     
  3. Fearless Tower

    Fearless Tower Touchdown! Greaser!

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    Thanks Ron!


    Sent from my iPad using Tapatalk HD
     
  4. Bob Bement

    Bob Bement Pattern Altitude

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    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.
     
  5. poadeleted20

    poadeleted20 Deleted

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    That is covered in 91.146. Minimum Private, and 500 hours of flight time if not CP or better.