StFYC International Yacht Racing Foundation (IYRF) 501(c)(3)EIN#:81-3298806
Case Study 2024 International Knarr Championship
Tax Exempt Purposes of StFYC IYRF Corp. Activities
(revised via IRS Form 1023, Jan. 21, 2023):
“The exempt purposes and activities of the Corporation fosters national and international amateur sports competition in the
field of sailing. To accomplish these purposes, subject to its successful reinstatement, the Corporation will recommence
supporting and developing amateur athletes’ abilities to compete successfully in high level sailing competitions. As is detailed
below, the Corporation will, subject to reinstatement, promote serious sports competition in the field of amateur competition
sailing. Amateur competitive sailing at the national and international level traditionally has been available only to those with substantial financial resources because the cost to compete in such competitions, including, for example, boat acquisition and
maintenance costs; is very high. Athletes lacking significant financial resources, but who have great skill and/or talent, are
generally unable to compete. The Corporation wishes to revive and continue supporting and developing top caliber athletes
who can compete and race meaningfully in national and international amateur sailing competitions, regardless of those
athletes’ means, experience, or background. In pursuit of this goal, the Corporation has supported in the past, and subject to reinstatement will recommence supporting, its own athletes as well as various tax-exempt charitable sailing organizations
such as the Sea Scouts through the Boy Scouts of America (BSA) sanctioned sailing events, for example, which itself presents the opportunities to fund, foster interest in and skills development of qualified Boy Scouts with an interest in recreational sailing and competitive sailing.”
Frequently Asked Questions
Yes, one can. It’s quite common for nonprofits to support other nonprofit organizations,
especially if they share a common mission or serve the same community
Yes, 501(c)3 nonprofits can gift money to individuals, provided the individual falls under
the primary demographic (“Charitable Class”) the nonprofit assists and the donation falls
within the organization’s mission as declared to the IRS and FTB. The individual must
submit a Grant Application (per the StFYC IYRC Guidelines) and NOT be used for
personal inurement or gain.
IRS public support test states that at least 1/3 (33.3%) of donations must be given by donors who give less than 2% of the nonprofit’s overall receipts. Exceptions include any gifts received from other donative public charities and/or a government source, such as a state or federal grant. For organizations that also get funds from sales of goods or services (i.e Program Revenues), such revenue counts toward the public support test also. The StFYC IYRF is Public Charity and therefore expected to have both diverse control and diverse funding.
Program Revenues (non-gift revenues) as related to the StFYC IYRF or Knarr class
might include the sale of merchandise, “participation fees” for a regatta, charging
admission for a sailing movie at a theater, rental/boat lease income, other fundraising
revenue.
No. An individual could make a donation to the IYRF to support crews of the “charitable
class” but can not specifically direct the donation to “inure” (in whole or in part) the
benefit of a private shareholder or individual (The Operational Test). For example: An
individual could make a donation to support a new fleet member or team of all women,
junior sailors, without financial wherewithal, that are not related to the donor. This would
serve the public interest of the fleet.
A Grant for an individual or Team must be initiated by a Grant Application & approval by
the StFYC IRC Board of Directors and clearly pass the test of “public benefit” and NOT
“personal inurement” of the donor
As a Skipper/Boat Owner, what other donations can be 100% tax deductible if directed through the StFYC IYRF
in support of select regattas (for public benefit).
- Donations to host a Regatta Event or Private Venue Expenses
- Donations to furbish the fleet with a standard set of new sails
- Donations to support the fleet preparation (Rigger/Boatwright) of standard boats for racing Expenses
- Donations to support bottom cleaning expenses of fleet race boats at regatta
- Donations to support The fleet Village Operational Expenses at the regatta
- Donations to support Airfares/Expenses of International Judges
- Donations to support the Fleet Borrowed Boat Insurance Policy
How does one make a donation to the StFYC Intl’ Yacht Racing Foundation?
Checks (DAF) can be written to “StFYC Intl’ Yacht Racing Foundation” and mailed to:
StFYC Intl Yacht Racing Foundation
PO Box 475638
San Francisco, CA 94147