Seakeeper's Society promotes 'profitable' charity scheme

The Seakeeper’s Society has embarked upon a new charitable project that will see it accepting donations in the form of superyachts. Using a previous project, in which yachts were donated to raise money for cerebral palsy research, the Seakeeper’s team is hoping to do the same for its cause – the oceans and the broader marine environment. Or, as Director of Development, Richard Snow put it, “Seakeeper’s is the yachting industry’s charity”.

Snow believes that sellers are currently faced with a fairly hostile market. He sees donation as an alternative, citing US tax law 501(c)3 which states that  donors can claim an annual tax deduction on the appraised value of the vessel when paying income tax., as long as it is being used for charitable purposes. In this instance the charitable purpose would be the installation of Seakeeper 1000 ocean monitoring devices, which are used by research teams investigating ocean sustainability.



Seakeeper’s then holds the vessel/donation for three years, making improvements and carrying out maintenance during that period. The company also charters the yacht and handles any potential sale of the vessel at the end of the tenure.

With the residual loss of value associated with yachts and the potential tax advantages of the scheme, Snow feels it is more profitable than simply chartering the vessel: “We recently had a donation where the donor’s tax credit is greater than the amount he could sell the boat. The transaction is a much faster way to ‘stop the bleeding’ for a donor.”

The project is relevant to any vessel owned by a US corporation or individual. For yacht owners looking to sell in a depressed market Snow says: “This transaction happens really quickly, which is of huge benefit to people. To comply with the IRS, we hold title on the boat for three years, we put capital improvement into the boat to show that we’re viable owners and then we find people who want to charter the boat with an option to purchase after three years.”

Put simply, Snow and his team aim to take the hassle out of selling a yacht, whilst earning money through its charter. The money goes towards it various research projects, developed and selected by it’s own Scientific Advisory Board, which handpicks projects that raise awareness of ocean vulnerability and investigate ways to reverse its degradation.



Related Links

Seakeeper's Society Profile | Seakeeper's Society Website

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