Qualifying Criteria

In order to determine if the sales opportunity will be a good candidate for a donation marketing strategy, several facts need to be determined.

Determining the donor's marginal tax bracket is step one, the higher the tax bracket, the higher the benefit the donor will realize. A moderate tax bracket may still make donation feasible as it can be taken in the current year plus carried forward over the ensuing five years.
If there is debt on the vessel, the donor would be required to retire it prior to donation. "Bargain sale cash", if applicable, would be paid immediately upon donation and tax benefits can be deducted each quarter from estimated payments. The above mentioned benefits can be used to offset debt retirement.
A vessel to be donated at fair market value has to have been owned for at least one year.
The donor must be willing to fund the arm's-length appraisal of the vessel, which is the only donor expense.