So I am starting a non profit...

Where most people get into trouble with non-profits is when they break it up. You can't just take the assets of the non-profit and make them yours. You HAVE to give them to another non-profit.
 
denverpilot said:
Dude. We greased the slope with CamGuard. It's like instant acceleration once you step on the edge. LOL!
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That definitely works better than greasing it with 1300L.
 
coloradobluesky said:
Where most people get into trouble with non-profits is when they break it up. You can't just take the assets of the non-profit and make them yours. You HAVE to give them to another non-profit.
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I doubt that a flight training related non-profit will have a problem with accumulated assets.
 
coloradobluesky said:
They might if the 5013c owns an airplane.
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That would typically happen if someone donated the plane to a charitable club and took the FMV as a tax deduction. In that case, it would only be fair if upon dissolution of the non-profit the asset value has to remain in the non-profit sector (btw. you don't have to give the plane to another non-profit, it can be sold and the proceeds given to a non-profit in the form of a grant).
 
weilke said:
That would typically happen if someone donated the plane to a charitable club and took the FMV as a tax deduction.
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Yes. That's rare, but does happen - it happened with Cloud Nine's 310, for instance. I also heard yesterday about a non-profit that got a 402B donated.

There are also non-profits that purchase airplanes for the use of the business with donated funds. One non-profit I worked with had a Navajo for a while, but they bought it and used it mostly for transport of senior staff. Or, Cloud Nine sold the 310 and bought the 414 because it was a better fit for the mission (and has proven its worth with double the capacity thus far).

I think one of the biggest misconceptions I hear about non-profits is that people assume I own Cloud Nine (the other is misconception is that non-profits have unlimited funds). Non-profits are not owned, they have a board of directors (in my case I am President of Cloud Nine). They can have paid staff (we don't), but there is no individual or group of individuals that own a non-profit, just individuals who have control over it. Because of this, when a non-profit gets dissolved, there is no individual that has the rights to the proceeds.
 
Ted DuPuis said:
I think one of the biggest misconceptions I hear about non-profits is that people assume I own Cloud Nine (the other is misconception is that non-profits have unlimited funds). Non-profits are not owned, they have a board of directors (in my case I am President of Cloud Nine). They can have paid staff (we don't), but there is no individual or group of individuals that own a non-profit, just individuals who have control over it. Because of this, when a non-profit gets dissolved, there is no individual that has the rights to the proceeds.
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Yup. All sorts of misconceptions.

I've been on the Board of a 501(c)7. Many people ask if their dues are tax-deductible. Nope. And a 7 can spend money lobbying (we don't) and do other things quite differently than a (c)3. Selling off unused assets for example, at a profit, as long as that income remains lower than about 35% of total revenues. In other words, dues need to be the normal source of income, and generally need to be equal to all members, as well.

Anyway, Ted caught on to what I was saying about assets. An airplane. It's worth thinking about how such an organization would deal with that, up front, since there's a bunch of ways to do it.

And like Ted said, there's a lot of misconceptions about what a non-profit corporation is, as well as misconceptions about the tax code.

Like people asking if their dues are tax-deductible because they see "501(c)" and miss the "7" on our website. :)
 
denverpilot said:
Anyway, Ted caught on to what I was saying about assets. An airplane. It's worth thinking about how such an organization would deal with that, up front, since there's a bunch of ways to do it.
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To be honest, owning an airplane was not part of the original plan with Cloud Nine. I owned the Aztec outright as my plane, and Cloud Nine rented the Aztec. I tend to think that's a better way for most small non-profits to operate. When the 310 got donated, obviously the previous owner wanted the tax write-off, so it went straight to Cloud Nine. There are advantages and disadvantages to both setups.
 
Velocity173 said:
I was thinking about starting a non profit flight school in remote regions of South America and bring aviation to its indigenous tribes.
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LOL how'd that work out? Actually I recall a thread on the old POA about that TV show last year or before where there was a guy doing that somewhere over there. It was quite comical the guy he was training to be a bush pilot.
 
Ted DuPuis said:
To be honest, owning an airplane was not part of the original plan with Cloud Nine. I owned the Aztec outright as my plane, and Cloud Nine rented the Aztec. I tend to think that's a better way for most small non-profits to operate. When the 310 got donated, obviously the previous owner wanted the tax write-off, so it went straight to Cloud Nine. There are advantages and disadvantages to both setups.
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Did you donate the hours to cloud nine and take a deduction for that (similar to how people donate their flight hours to angel flight)?

One advantage of holding a plane in the non-profit would be in states where the county/muncipality collects property tax on aircraft. Charitable non-profits are frequently exempt.
 
mscard88 said:
LOL how'd that work out? Actually I recall a thread on the old POA about that TV show last year or before where there was a guy doing that somewhere over there. It was quite comical the guy he was training to be a bush pilot.
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With the current pilot shortage, I see that region as an untapped resource to alleviate the problem. I really don't believe they'll be much of a barrier as far as the learning / adapting. Once they realize the aircraft isn't a Fire God, I think they'll take to piloting aspect quite well.
 
Oh, my bad, sorry. I thought you were joking on PP. It's definitely untapped but a lot a terrorist activity there. Big Special Ops base in Djibouti.
 
mscard88 said:
Oh, my bad, sorry. I thought you were joking on PP. It's definitely untapped but a lot a terrorist activity there. Big Special Ops base in Djibouti.
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You are the only person that feels that way.
 
mscard88 said:
LOL how'd that work out? Actually I recall a thread on the old POA about that TV show last year or before where there was a guy doing that somewhere over there. It was quite comical the guy he was training to be a bush pilot.
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Right.

That's like going to Detroit and offering a class on balancing your investment portfolio lol
 
PrincessPilotNJ said:
You are the only person that feels that way.
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Coming back after the beating you took on here, my hats off to you, didn't think we'd see you again on here.

Good luck with your project.
 
Velocity173 said:
??? She goes off the deep end on you, starts deleting her profile then comes back, tells people not to worry about what she's doing but yet is always posting for attention. Yeah...makes complete sense.:confused:
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I think it's admirable that she doesn't let a disagreement get in the way of giving credit where credit is due.
 
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