Phone: 619-669-5183

What is a “Partial Cash Payment”?

Potential yacht donor considers a partial cash payment

A “Partial Cash Payment” is a benefit that may be offered by Action Yacht Donation Services® to donors of qualified high value yachts and luxury vessels who donate to one of our client charities! It is one of the many unique benefits that set us apart from other services. The partial cash payment we are referring to is called by the IRS a “Bargain Sale”. Bargain sales are allowable when they follow IRS guidelines and are properly reported. Your gift can be “partly a donation” and “partly a sale.”

The “partial cash payment” benefit is a “Win-Win” for both the donor and the charity! It generally results in Action® being able to secure certain high value vessel donations. These are high value donations that they might not otherwise receive. Securing these donations then results in more money for the charity. Such a donation then allows the donor to receive some cash as well as the maximum legal tax deduction. Click on the following link for IRS info explaining a “bargain” sale:

Here’s how it works: For qualified high value yachts and luxury vessels, we may offer the donor who requests it,  a “partial cash payment”. The offer is made as an incentive to donate the vessel to one of our client charities. The donor generally is entitled to a deduction equal to the difference between the cash they receive and the price for which the donation is sold on behalf of the charity.

Note: according to IRS laws which became effective Jan 1, 2005, the fair market value of donated vehicles, boats, etc. is determined by what it sells for (the gross selling price). No longer can the donor claim, as a deduction, estimated book values. However, if significant material improvements (as defined by the IRS) are made to the vessel, then the donor may be able to claim the survey value. Or if the vessel is used by the charity to fulfill its mission (also as defined by the IRS, i.e. significant intervening use), the donor may be able to claim the full appraised value of the vessel as a tax deduction at the time of the donation.  Donors should always consult with their own financial/tax advisors before claiming any high value vessel tax deductions.

Only certain higher value yacht or luxury vessel donations can qualify for a partial cash payment. We explain that carefully to all potential donors and evaluate their property at the time the donation is offered to the charity.

The Action Donation Services Partial Cash Payment
Benefit is a “Win-Win” for Both the Donor
And Our Client Charities!