Donating a flight for an auction.

Challenged

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The local Coastal Conservation Association has inquired about the possibility of me donating my airplane and piloting skills for a local auction. As I do not currently have my commercial rating, I'm wondering about the FAA's take on the process of money exchanging hands for a flight, even though technically I won't receive any compensation. Any extra liability issues in this beyond normal insurance coverage?
 
*I am not a pilot*
My first thought is this - could a tax deduction for a donation like this be considered compensation?

Again, I'm not a pilot, and don't know the FARs other than a cursory understanding of ones that would affect me as a hopefully one-day Sport Pilot, and what I've heard in podcasts and forums, but this was just the first thought that came to my mind.
 
I didn't even consider the tax deduction aspect, so I appreciate the input.
 
Grab your FAR/AIM and read up on 14 CFR 91.146 -- it's all in there. But the short answer is "yes, you can," and yes, you can take a tax deduction for the cost of the donated flight (but not for your time) -- the FAA Chief Counsel is on record saying that tax deduction is not illegal "compensation."

As for insurance issues, you will be liable if your negligence causes damage or injury to someone else. That's why you have insurance. Just remember that if you have a $100K/seat limit for passengers, your personal assets would be attacked very quickly. Good news is that if you are a smart and prudent pilot, and take proper care of your airplane, the odds of anything like that happening are pretty small -- small enough that I do it myself without worrying about it.
 
Thanks very much for the reference Ron, I appreciate you pointing me in the right direction.
 
I'm going to bump this.. I am thinking about donating my time and my airplane for a toy drive raffle. I could either donate it as a scenic flight, or an introductory flight. Which would be better from a legal standpoint and a liability standpoint?
 
I would at least call it a scenic flight,an introductory flight might bring in to question if you are giving instruction.
 
I would at least call it a scenic flight,an introductory flight might bring in to question if you are giving instruction.

Well, I am an instructor so that's well within the scope of my certificate.

But in talking with the guy running the event I think we're going to call it a scenic flight.
 
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I'm going to bump this.. I am thinking about donating my time and my airplane for a toy drive raffle. I could either donate it as a scenic flight, or an introductory flight. Which would be better from a legal standpoint and a liability standpoint?
The sightseeing ride is probably the easiest. You have to comply with 91.146, but that's not really that hard as long as the raffle operators are a qualified organization (see paragraph (a) of that regulation), but you don't need a 100-hour inspection and your current aircraft insurance probably covers it. From a liability standpoint, if you crash, you can expect to be sued, but it won't be much different from any other time you take someone for a ride under your PPL privileges.

An introductory flight where you are providing the aircraft and the instruction (you're a CFI who owns his own plane, right?) is more complicated on the inspection/insurance front. You'll need a current 100-hour inspection on the plane (or an annual within the preceding 100 hours flight time). You'll also need to have your aircraft insurance cover this "instruction-for-hire" commercial use of the aircraft (it's not within the normal "business/personal" policy coverage). From a liability standpoint, since this a commercial pilot/CFI offering flight training for money, you can expect the standards by which you'll be judged to be higher, so make sure you and your plane are fully up to snuff and you approach the flight with due care and consideration for a flight training operation, not just Joe Pilot giving someone a ride.
 
But in talking with the guy running the event I think we're going to call it a scenic flight.
Good idea. 91.146 is very clear and straightforward, and you avoid the increased insurance needs and higher risks and liability standards of putting them in the left seat.
 
Good idea. 91.146 is very clear and straightforward, and you avoid the increased insurance needs and higher risks and liability standards of putting them in the left seat.

Thanks Ron. It's defined as a 'community event' so it looks like it's a once-a-year thing which is fine (this is a once a year event). But from the looks of it I have to contact the FSDO and furnish them with stuff? There isn't really a sponsor of the event, it's a group of friends that donate stuff for foster kids to get at Christmas. Also, I don't have 500TT, but I'm not a private pilot either.
 
Thanks Ron. It's defined as a 'community event' so it looks like it's a once-a-year thing which is fine (this is a once a year event). But from the looks of it I have to contact the FSDO and furnish them with stuff?
You don't have to "contact" them in the sense of 2-way communication. All you need do is mail them the information listed in paragraph (e) so it arrives at least seven days prior to the "event" (never sure if that's the flight or the auction, so I always get it in early). As long as you don't hear back, you're good to go.

There isn't really a sponsor of the event, it's a group of friends that donate stuff for foster kids to get at Christmas.
Without a "sponsor", you can't do this under 91.146. The money's got to go somewhere, and someone has to be collecting it, and there has to be accountability for it. Most states/municipalities have rules about this sort of thing, so check that out before you folks get nailed for panhandling or worse. Then get whoever's in charge of the group to sign the letter in paragraph (e)(1) (which you should probably ghost-write). That said, if "a group of friends" asked me to do this, and they didn't have any sort of organization or IRS tax number or a bank account through which the money was going, I think I'd politely decline -- too shaky (that's shaky, not shady -- no aspersions intended) a deal for me to get involved with this way.

Also, I don't have 500TT, but I'm not a private pilot either.
That's OK -- the 500TT only applies to PP's. CP's with less are good to go.
 
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You don't have to "contact" them in the sense of 2-way communication. All you need do is mail them the information listed in paragraph (e) so it arrives at least seven days prior to the "event" (never sure if that's the flight or the auction, so I always get it in early). As long as you don't hear back, you're good to go.

Without a "sponsor", you can't do this under 91.146. The money's got to go somewhere, and someone has to be collecting it, and there has to be accountability for it. Most states/municipalities have rules about this sort of thing, so check that out before you folks get nailed for panhandling or worse. Then get whoever's in charge of the group to sign the letter in paragraph (e)(1) (which you should probably ghost-write). That said, if "a group of friends" asked me to do this, and they didn't have any sort of organization or IRS tax number or a bank account through which the money was going, I think I'd politely decline -- too shaky (that's shaky, not shady -- no aspersions intended) a deal for me to get involved with this way.

That's OK -- the 500TT only applies to PP's. CP's with less are good to go.

Ron, there is no money changing hands. Each toy is given a ticket that is entered into the raffle. Last year I donated around 20 toys and got 20 raffle tickets in exchange, one of those tickets won me a $30 Amazon gift card. Does that make more sense?

I do find it disappointing that someone like me with appropriate commercial ratings, appropriate recent experience, and insurance coverage has to jump through hoops to donate a half hour of my time and fuel. It's hardly worth it. :(
 
Ron, there is no money changing hands. Each toy is given a ticket that is entered into the raffle. Last year I donated around 20 toys and got 20 raffle tickets in exchange, one of those tickets won me a $30 Amazon gift card. Does that make more sense?
Let me see if I've got this right. Originally I was thinking people you were donating the flight to be raffled off to raise money to buy toys to be given away. That's a 91.146 deal since someone's paying money and getting an airplane ride in return.

However, you're now saying that you're donating a ride to be given away free, gratis, no money or other thing of value changing hands. The recipient isn't paying for anything while you pay the cost of the flight. Do I have that right? If so, it's just a free ride, not a light covered by 91.146, and you don't have to get the FAA involved at all.

Or is this essentially a "gift exchange", where you put something in the pot and everyone draws something out? Where the person who wins your airplane ride had to put something of value in the pot in order to get anything out? In that case, I don't see this being a "community event" at all, and outside the lines of 91.146 -- just air transportation for compensation, and that's at least a 91.147 commercial sightseeing ride.

I do find it disappointing that someone like me with appropriate commercial ratings, appropriate recent experience, and insurance coverage has to jump through hoops to donate a half hour of my time and fuel. It's hardly worth it. :(
You don't. I misunderstood the situation based on your original post about a "toy drive raffle" where the person receiving the ride had to pay into the deal which resulted in them getting the ride. That would be a quid quo quo, (airplane ride in exchange for donation) and that means 91.146 comes into play. But if you are getting anything other than the joy of giving out of this (like a gift out of the gift exchange or a raffle ticket or anything else), or it's not for the benefit of a recognized community organization/event, all bets are off and 91.147 applies, not 91.146.

All in all, I'm really not sure I'm understanding all the details, and in this situation, the devil is in the details.
 
Let me see if I've got this right. Originally I was thinking people you were donating the flight to be raffled off to raise money to buy toys to be given away. That's a 91.146 deal since someone's paying money and getting an airplane ride in return.

However, you're now saying that you're donating a ride to be given away free, gratis, no money or other thing of value changing hands. The recipient isn't paying for anything while you pay the cost of the flight. Do I have that right? If so, it's just a free ride, not a light covered by 91.146, and you don't have to get the FAA involved at all.

Or is this essentially a "gift exchange", where you put something in the pot and everyone draws something out? Where the person who wins your airplane ride had to put something of value in the pot in order to get anything out? In that case, I don't see this being a "community event" at all, and outside the lines of 91.146 -- just air transportation for compensation, and that's at least a 91.147 commercial sightseeing ride.

You don't. I misunderstood the situation based on your original post about a "toy drive raffle" where the person receiving the ride had to pay into the deal which resulted in them getting the ride. That would be a quid quo quo, (airplane ride in exchange for donation) and that means 91.146 comes into play. But if you are getting anything other than the joy of giving out of this (like a gift out of the gift exchange or a raffle ticket or anything else), or it's not for the benefit of a recognized community organization/event, all bets are off and 91.147 applies, not 91.146.

All in all, I'm really not sure I'm understanding all the details, and in this situation, the devil is in the details.

Ron, thanks for all your time and help. I really do appreciate it. You are a database of FAR knowledge, and incredibly helpful. I'll do my best to explain it better.


As a club, a car club, we hold a toy drive. Everyone brings an assortment of unwrapped toys which are donated to foster kids in 'the system'. For every toy a person brings, they receive a raffle ticket (if they choose to do so). Then, tickets are drawn for various donated prizes such as gift cards, t-shirts, candy boxes etc. I wanted to donate an airplane ride for the raffle prizes. No money changes hands, just toys. I hope that makes more sense.
 
I am seriously asking a question, not being rhetorical...
How I read the FAR this rule was designed to allow PPs to do flights for charity without violating the rules by doing a "commercial flight".

Since you have your commercial, then you should be able to do the flight without needing to worry about the hoops because even if the FAA viewed it as compensation, you can still fly it because you have your commercial... no?
 
Ron, thanks for all your time and help. I really do appreciate it. You are a database of FAR knowledge, and incredibly helpful. I'll do my best to explain it better.
Happy to help. And thanks for sticking with me getting the details straight -- sounds like a good cause.

As a club, a car club, we hold a toy drive. Everyone brings an assortment of unwrapped toys which are donated to foster kids in 'the system'. For every toy a person brings, they receive a raffle ticket (if they choose to do so). Then, tickets are drawn for various donated prizes such as gift cards, t-shirts, candy boxes etc. I wanted to donate an airplane ride for the raffle prizes. No money changes hands, just toys. I hope that makes more sense.
Then, to all intents and purposes, you're raffling off an airplane ride to benefit the foster kids. Your car club probably isn't a charitable organization as defined in that reg, nor is "promotion of aviation safety" one of its purposes, but the event itself (donation of the toys to the foster kids) sounds to me like it "raises funds for the benefit of any local or community cause that is not a charitable event or non-profit event". That's still 91.146. So, we're back to the original deal with you writing the 91.146(e)(1) letter for the car club president to sign, and sending that letter along with the other stuff listed in 91.146(e) to the FSDO at least seven days prior.

Alles klar?
 
Happy to help. And thanks for sticking with me getting the details straight -- sounds like a good cause.

Then, to all intents and purposes, you're raffling off an airplane ride to benefit the foster kids. Your car club probably isn't a charitable organization as defined in that reg, nor is "promotion of aviation safety" one of its purposes, but the event itself (donation of the toys to the foster kids) sounds to me like it "raises funds for the benefit of any local or community cause that is not a charitable event or non-profit event". That's still 91.146. So, we're back to the original deal with you writing the 91.146(e)(1) letter for the car club president to sign, and sending that letter along with the other stuff listed in 91.146(e) to the FSDO at least seven days prior.

Alles klar?

Thank you Ron. Yes, that is all correct. Thank you again, I can now make an informed decision and not violate any FARs! I'm too young for that!
 
I am seriously asking a question, not being rhetorical...
How I read the FAR this rule was designed to allow PPs to do flights for charity without violating the rules by doing a "commercial flight".

Since you have your commercial, then you should be able to do the flight without needing to worry about the hoops because even if the FAA viewed it as compensation, you can still fly it because you have your commercial... no?
No. The issue isn't so much the pilot's certificate level as it is the lack of legal authority to accept compensation for providing air transportation of passengers. What isn't always clearly covered in pilot training is that a commercial pilot certificate issued per Part 61 only allows you to fly the plane when money is changing hands -- not to collect money from passengers for the flight, which requires that the party receiving that money hold a commercial operating certificate issued according to Part 119 to operate under one of the commercial operating parts (like 121 or 135). Of course, when passengers are paying for the flight, a CP or better is required to pilot the aircraft, but that's a separate issue from the certificate required to be providing air transportation for compensation/hire.

91.146 provides one of two exceptions to the requirement for a commercial operating certificate to provide air transportation for compensation/hire -- specifically, flights for the benefit of charitable organizations, certain non-profit organizations supporting aviation safety, and any other event "that raises funds for the benefit of any [other] local or community cause." Because these are for "good causes" and not for profit, the FAA goes so far as to allow PP's with over 500TT as well as CP/ATP pilots to conduct the flights. The other exception is 91.147 for sightseeing flights, but those require at CP or ATP as the pilot since those are essentially business operations not benefitting anything but the business's bottom line.

Please feel free to ask further if that isn't clear.
 
Go to www.faa.gov. Click on Federal Aviation Regulations over on the right. Click on 110-199. Click on 119. Read 119.1, Applicability, especially the part where it mentions non-stop flights within 25 miles of the departure airport.

In my book THE COMPLETE ADVANCED PILOT, I ask the reader "What will you be able to do with your commercial certificate? (I asked the same question when I was a DE giving commercial checkrides.) Carrying passengers for hire is not the right answer, except under very limited circumstances. I provide some suggestions to the fledgling.

Bob Gardner
 
No. The issue isn't so much the pilot's certificate level as it is the lack of legal authority to accept compensation for providing air transportation of passengers. What isn't always clearly covered in pilot training is that a commercial pilot certificate issued per Part 61 only allows you to fly the plane when money is changing hands -- not to collect money from passengers for the flight, which requires that the party receiving that money hold a commercial operating certificate issued according to Part 119 to operate under one of the commercial operating parts (like 121 or 135). Of course, when passengers are paying for the flight, a CP or better is required to pilot the aircraft, but that's a separate issue from the certificate required to be providing air transportation for compensation/hire.

I suspect the problem in understanding commercial pilot privileges and limits may not be with pilot training as much as it is with the FAA's lazy reference to "the applicable parts of this chapter" in the text of 61.133. So, lacking an understanding of the import or meaning of that phrase, it seems to suggest a commercial pilot likely can directly accept compensation with only a CP in hand.

Only FAA regulation cognoscenti are likely to know that Title 14 is split into 5 chapters and 5 volumes (these appear to be two overlapping categorizations of the same material) and that Parts 1 to 199 are in Chapter I, Parts 200 to 399 are in Chapter II, Parts 200 to 1199 are in Chapter III (yes, Parts 200 to 399 appear in two different Chapters!) , and Parts 1200 to 1299 appear in Chapter V. (No, I have no idea where Chapter IV went.)

All those Parts are also subdivided into Volumes, but I wont go into that. Not to belabor the point, us poor civilians who aren't allowed to claim ignorance of the law need some cheat sheet to figure this stuff out - and the FAA doesn't go out of its way to present that material in a sensible manner. Fortunately they had to let some people in on the obscurities, so a nice summary is to be found in Figure 12-2 of Chapter 12 of the Aviation Maintenance Technician Handbook:

https://www.faa.gov/regulations_pol...craft/amt_handbook/media/FAA-8083-30_Ch12.pdf

Otherwise everyone is left to their own devices in determining 61.133's parent chapter and its contents and still needs to scan all of it to determine which parts are "applicable", since the FAA couldn't be bothered to be more specific (they can be when they want.)
 
Ron, there is no money changing hands. Each toy is given a ticket that is entered into the raffle. Last year I donated around 20 toys and got 20 raffle tickets in exchange, one of those tickets won me a $30 Amazon gift card. Does that make more sense?

I do find it disappointing that someone like me with appropriate commercial ratings, appropriate recent experience, and insurance coverage has to jump through hoops to donate a half hour of my time and fuel. It's hardly worth it. :(

Would filling out the appropriate paperwork for either EAA Young Eagles or Eagle Flight solve the problem? Our EAA chapter flies the boy scouts working on the aviation badge. My neighbor's kids are also working on the badge but different troop. I took the boys separately with Dad in back and YE paperwork and all are happy. Sent the paperwork in, of course, so we get the credit.
 
Perhaps a change in terminology is required. Instead of raffle, how about a drawing with no required money or goods required but "suggested donation" instead? In Colorado we're very leery of the term "raffle" due to the legal and FAA issues.
 
Would filling out the appropriate paperwork for either EAA Young Eagles or Eagle Flight solve the problem?
No. EAA prohibits any charge or other condition (other than the basic rules like age for YE) for providing the flight, and the donation of a toy is a condition for this one.
 
Perhaps a change in terminology is required. Instead of raffle, how about a drawing with no required money or goods required but "suggested donation" instead?
I don't see the FAA buying that as a way to get around 91.146.
 
Thanks for that great explanation, Ron.

I assume flying Boy Scouts for Aviation merit badge would be fine as there is no compensation changing hands.
 
Thanks for that great explanation, Ron.

I assume flying Boy Scouts for Aviation merit badge would be fine as there is no compensation changing hands.


The FAA would likely be ok with it, but you would also need to meet the Scouts requirements.

You are better off having them completely the badge with another requirement and when they are done inviting them to the airport on a saturday.
 
The FAA would likely be ok with it, but you would also need to meet the Scouts requirements.

You are better off having them completely the badge with another requirement and when they are done inviting them to the airport on a saturday.

I have looked at the Scouting requirements, and they appear to only control in the event of transporting Scouts to a Scout function–not taking Scouts on a flight for aviation merit badge. That being said, your advice is probably very sound an a good idea.

I'm planning to teach Aviation merit badge starting this year.
 
I have looked at the Scouting requirements, and they appear to only control in the event of transporting Scouts to a Scout function–not taking Scouts on a flight for aviation merit badge. That being said, your advice is probably very sound an a good idea.

I'm planning to teach Aviation merit badge starting this year.


I have been meaning too, i just haven't got around to doing the paperwork.

I hear Sporty's will send you some materials, if you send a Note to Hal and tell him what you are doing.
 
Thanks for that great explanation, Ron.
Happy to help.

I assume flying Boy Scouts for Aviation merit badge would be fine as there is no compensation changing hands.
From an FAA perspective, yes, it would be fine, and exactly for that reason. However, my guess is BSA has their own rules about pilots and aircraft for that purpose (at least if it's done as an official BSA activity rather than "on your own"), so I'd research that with them before I did it.
 
Happy to help.

From an FAA perspective, yes, it would be fine, and exactly for that reason. However, my guess is BSA has their own rules about pilots and aircraft for that purpose (at least if it's done as an official BSA activity rather than "on your own"), so I'd research that with them before I did it.

Girl scouts classify this as "high adventure" and levy requirements that only large flight schools can meet. (10M insurance, for one, in my chapter). So interested girls get rides outside of scout time.

Sent from my Nexus 7 using Tapatalk 4
 
Again, the only rule on flying Boy Scouts that I have been able to find both from our Council office and in the Guide to Safe Scouting is if you are transporting Scouts on a trip somewhere (not a sightseeing or pleasure flight) and they are the onerous requirements you mention that only a flight school could meet. I'm not saying that I the rule isn't out there, but I've looked and called the Council. Be that as it may, I think it's good advice to do this outside of Scouting. They can still see the plane, do the preflight, etc. Then my partner in the plane can take them for a ride!!
 
At the office now and have now found the requirements.

250 hours plus ppl. Must be current to carry passengers. Insurance of $1M/$100k. Within 25 miles with no stops (orientation flight). If you have 500 hours, and take Venture Scouts only, you can go 50 miles and land at other airports.

EAA provides the $1M if you are an EAA member doing Young Eagle flights, and the BSA strongly encourages all BSA orientation flights to take place in collaboration with local EAA chapter Young Eagle Flights.

Military are exempt from the insurance and hour requirements.

No experimental aircraft can be used (odd, since they encourage flights with the EAA).

So I hadn't looked into this enough. But now I'm glad I did.

One of the other assist. Scoutmasters in my troop is an ATP that flew for American before his current gig flying for Altria. If I can't fly them, he could. But better still to just go to an EAA Young Eagles event.
 
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