Pilot compensation for transport

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adcst12

Pilot compensation for transport

Post by adcst12 » Tue Aug 19, 2008 2:58 pm

I am a student pilot and animal lover working to create an e-mail network of pilots in the western-pennsylvania area who I could contact in case of a transport need (rather than waiting for them to come to this message board). I have been asked the question several times about compensation for pilots. They are not looking to be paid, per se, just wondering if there was any opportunity to off-set some of the expenses.

My first step was to reserch the Federal Air Regulations (FARs). Section 61.113 is very clear that "no person who holds a private pilot certificate may act as pilot in command of an aircraft that is carrying passengers or property for compensation or hire" but later it says "A private pilot may not pay less than the pro rata share of the operating expenses of a flight with passengers, provided the expenses involve only fuel, oil, airport expenditures, or rental fees." So, is the animal being transported considered a passenger or property? (Not judging here---my pet is DEFINITELY a passenger!) My guess is that the FAA would say "property" so that would mean the pilot could accept no reimbursement. However, if a human handler came along for the ride, the human passenger could contribute up to their pro-rata share of the expenses listed above.

The other thought is that at least some of the expenses would be deductable as a charitable donation. I am sure there are some rules here, starting with the sponsoring organization being a non-priofit organization, but I don't know what else would be involved.

Can anyone clarify on either the FAA or IRS regulations at play here? I want to give those interested the right answer and, if the out-of-pocket expense to the pilot can be reduced, more pilots would be willing to help. Nearly all pilots I know are looking for an excuse to fly more and cost is a significant barrier to most of them.

Jon

Re: Pilot compensation for transport

Post by Jon » Tue Aug 19, 2008 3:53 pm

There is no way we can be compensated for our flights without operating under part 135. As a practical matter nobody has money to pay for flights. Shelters and rescues operate on a shoestring and they don't have the resources.

However, some are 501(3)C organizations which allows you to treat the expenses of a flight as a charitable donation. Very detailed records and receipts are required. That is something that should be discussed with a tax professional. It isn't cash to offset expenses, but at the end of the year it could amount to a serious reduction in how much taxes you have to pay.

Philosophically I have adopted the attitude that doing a transport perhaps with a friend as co-pilot is a better way to enjoy flying than just heading out for a hamburger. I have as much fun and helping animals to safety is a substantial reward. But if I can deduct the flight expenses that is just frosting on the cake.

My pets are family, but I doubt if the law sees them as such.

takas4698

Re: Pilot compensation for transport

Post by takas4698 » Fri Oct 10, 2008 7:15 pm

This is a great topic. I assume that the groups would not have the funds to compensate the pilots, but how many of the organizations would you be able to make this a tax deductable "dontation" of time and flight expenses? I am brand new to this and my wife and I love 2 things in life- our dogs and flying... I would really love to help any dog in need, but with the cost of gas and my 182 burning about 16gph, it would be nice to write that off at the end of the year. Has anyone been able to write it off previous tax years? Easy to do? I have a friend that uses his plane for a childerens organization and he is able to expense fuel, oil, hours he needs to stay current, part of insurance, hangars etc... I think you would have a HUGE amount of pilots willing to help out if they knew that they can write it off at the end of the year.

Michele
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Re: Pilot compensation for transport

Post by Michele » Fri Oct 10, 2008 7:16 pm

Icing on the cake!

Debi
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Re: Pilot compensation for transport

Post by Debi » Fri Oct 10, 2008 7:36 pm

takas4698 wrote:This is a great topic. I assume that the groups would not have the funds to compensate the pilots, but how many of the organizations would you be able to make this a tax deductable "dontation" of time and flight expenses? I am brand new to this and my wife and I love 2 things in life- our dogs and flying... I would really love to help any dog in need, but with the cost of gas and my 182 burning about 16gph, it would be nice to write that off at the end of the year. Has anyone been able to write it off previous tax years? Easy to do? I have a friend that uses his plane for a childerens organization and he is able to expense fuel, oil, hours he needs to stay current, part of insurance, hangars etc... I think you would have a HUGE amount of pilots willing to help out if they knew that they can write it off at the end of the year.
I am not a pilot so will not be able to comment on the success any pilot has had with writing off any deductions. I do know that if you are assisting a 501c3 charitable rescue group they have the capability of issuing you a donation letter at the end of the year, just as any other charitable group you donate too. Hopefully, your accountant would be able to advise you or maybe we have a pilot who is knowledgeable about the answer to this question??

Debi

Jon

Re: Pilot compensation for transport

Post by Jon » Sat Oct 11, 2008 7:26 am

This is a question for anyone in the legal or accounting profession that may be part of this group.

Is it possible for pilots n paws to be a 501c3 charity? I have dealt with and flown for a considerable number of fosters and rescues and shelters this past 6 months or so. Very few are 501c3 organizations, and most are just very kind hearted people who want to save animals. Perhaps if PNP is the 501c3 our impact as a group could be greater because of the ability to gain a tax advantage.

As to donations, Debi is our money person and through the Prevost Owner's Group
http://www.prevostownersgroup.com/public/ PNP got some seed money to provide pilots with carriers and safety harnesses. Any more donations would be used for similar purposes, but as yet the donations will not be tax deductable.

cadethomson
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Re: Pilot compensation for transport

Post by cadethomson » Sat May 25, 2019 1:39 pm

Does anyone have the letter of interpretation from the FAA that states Pilots N Paws is legal for private pilots to take part in?

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admin
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Re: Pilot compensation for transport

Post by admin » Sun May 26, 2019 9:26 am

cadethomson wrote:Does anyone have the letter of interpretation from the FAA that states Pilots N Paws is legal for private pilots to take part in?
Yes, we do have the letter. I will copy and paste the pertinent part of the letter here for you. Additionally, please take the time to read the letter from Air Care Alliance explaining a clear line in the FAR's with regards to volunteer pilots. You can read the very informative article here: http://www.aircarealliance.org/reimburs ... s-aircraft

Body of the letter to Pilots N Paws from the Office of the Chief Counsel of the FAA:

"This is in response to your June 17, 2009, request for a legal interpretation of the Federal Aviation Administration's policy relating to charitable flights. You specifically seek clarification of the FAA compassionate flight policy as it relates to the deductibility of flight related expenses incurred by uncompensated volunteer pilots who transport rescue animals by aircraft. The facts as outlined in your letter are as follows:

Pilots-n-Paws is a 501(c)(3) designated organization dedicated to saving the lives of innocent animals that operates a website to serve as an electronic meeting place for those seeking transportation of rescue animals and volunteer pilots who are willing to transport the animals from overcrowded shelters to those that can better accommodate them. Individuals seeking transportation for rescue animals and volunteer pilots can meet on the website and make necessary bilateral agreements to do so. Pilots-n-Paws is not a party to such agreements, and does not provide any flight services. Pilots-n-Paws acts only as a facilitator via its website, where it makes clear that pilots who wish to volunteer their time and aircraft must do so without any expectation of compensation and in compliance with the requirements of section 61.113.

We believe that this issue was addressed in the letter of Rebecca B. Macpherson, Assistant Chief Counsel, Regulations Division, to Joseph A. Kirwan, dated May 27,2005, (the "Kirwan letter"). In the Kirwan letter, we addressed whether a pilot could take a tax deduction for expenses related to charitable flights among other issues. We know that historically the FAA has considered the taking of a tax deduction for these types of flights to constitute a form of compensation not permitted under section 61.113. However, we stated in Kirwan that our enforcement policy now provides as follows:

Since Congress has specifically provided for the tax deductibility of some costs of charitable acts, the FAA will not treat charitable deductions of such costs, standing alone, as constituting "compensation or hire" for the purpose of enforcing [the Federal Aviation Regulations]." If taking a charitable tax deduction for transporting persons or property is coupled with any reimbursement of expenses, or other compensation of any kind, then this policy does not apply. See FAA Order 8900.1, Vol. 4, Chap. 5, § 1, 4-922).

Our policy on this issue remains unchanged, and it is not altered by the fact that the flights are conducted to rescue animals.

We trust that the foregoing interpretation is responsive to your inquiry. This interpretation was prepared by the Operations Law Branch of the Office of the Chief Counsel, and coordinated with the Air Transportation and General Aviation Divisions ofthe Flight Standards Service.

Sincerely,
Rebecca B. Pherson
Assistant Chief Counsel for Regulations, AGC-200"

As a reminder , this letter to us strictly refers to whether or not our volunteer pilots can claim some of their expenses while making an rescue animal flight as a charitable donation. The line is still very clear that no volunteer pilot who volunteers with us can accept compensation with regards to fuel and or fundraising to cover the costs of their flights. Pilots N Paws was created to assist rescues with their needs to transport animals to safety for numerous reasons. We were created to fulfill a lifesaving need with the idea that pilots are going to fly anyway because they love it. Why not make a difference and give back while doing something you love, it's a win win! Thank you to everyone for volunteering!!

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Re: Pilot compensation for transport

Post by RickG » Fri Jun 21, 2019 2:52 pm

AOPA published a new article on their website (July 2019) regarding this topic:

OWNERSHIP: FLYING TO HELP OTHERS
LEGAL MATTERS FOR VOLUNTEER PILOTS
https://www.aopa.org/news-and-media/all ... elp-others

No change in the regulations ... but a good refresher of the FARs as it relates to accepting any type of compensation for flights.
Durham, NC (8NC8)
C172E VFR
93 rescue flights ... 347 dogs ... and 53 cats!

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