How Wings of Hope is Financed

People in aviation and their businesses support Wings of Hope

Religious groups, individuals, corporations and foundations have supplied the life blood of Wings of Hope since its inception.

As a purely aviation-oriented charity a large measure of our support has come from people with a stake in aviation either as pilots, plane owners or aviation businessmen.

When “tight money” hit about mid-1970, Wings of Hope directors decided to seek gifts of aviation equipment in lieu of cash. The aviation trade press generously carried our appeals by donating complimentary advertising space with the ad copy worked up gratis by the Gardner agency of St. Louis and the Gordon, Kietzman, Dennis agency of Oklahoma City.

In the event we can use the donated equipment in our missionary support operations – engines, airframes, avionics or instruments and accessories we fix it up and ship it out. If we can’t adapt it to our own uses, we overhaul or repair it and sell it or trade it for something we can use.

In recent years memorial funds have been a source of support. Usually these funds are established by friends or relatives of deceased brethren who have aided our cause. Two such memorials are for the late Dwight P. Joyce, Cleveland, Ohio business executive and pilot, the first president of the National Pilots Association, and Joseph T. Geuting of Washington, D.C., a founder of the medical assistance ship “Hope” and long time supporter of Wings of Hope. Joe will be remembered as the dedicated executive director of the General Aviation Manufacturers Association, formerly Utility Airplane Council of the Aerospace Industries Association.

Corporations making contributions to Wings of Hope, Inc. can deduct up to 5% of taxable income. They may carry over for 5 years contributions in excess of the 5% limit.

A contribution may be made in the form of property as well as money. The amount deductible before the 1969 Tax Reform Act was the fair market value of the property at the time of contribution. Now the value must be reduced by the amount which would be ordinary income or short-term gain if the property had been sold for fair market value. Thus, the deduction for a gift of appreciated inventory will be limited to basis.

If the sale would have resulted in long-term gain, the value must be reduced by 62½ % of such gain. Thus, the corporation may deduct basis plus 37½% of the appreciation.

If Wings of Hope, Inc. is able to actually put contributed property to use in its own charitable endeavor, the above values do not have to be reduced as stated above; and the contributing corporation may deduct the full fair market value subject to, the 5% of taxable income limitation.

Individuals contributing to Wings of Hope, Inc. can deduct up to 50% of their “contribution base.” The “contribution base” is adjusted gross income computed without regard to any net operating loss carry back to the taxable year. So, for most cases we may say the contribution is limited to 50% of adjusted gross income.

A contribution may be made in the form of property as well as money. The amount deductible before the 1969 Tax Reform Act was the fair market value of the property at the time of contribution. Now the value must be reduced by the amount which would be ordinary income or short-term gain if the property had been sold for fair market value. Thus, the deduction for a gift of appreciated inventory will be limited to basis.

If the sale would have resulted in long-term gain, the individual must limit his deduction to 30% of contribution base instead of 50%.

However, if he elects to reduce the amount of appreciation by one half he may still give and deduct up to 50%.

If Wings of Hope, Inc. is able to actually put contributed property to use in its own charitable endeavor, the full fair market value of the contributed property up to 50% of contribution base, may be deducted.

In the case of an individual contributing an aircraft to Wings of Hope, Inc. that he has used only for personal use, his undepreciated cost would be his base. This base would exceed the fair market value of the gift and there would be no appreciation. The full amount of the fair market value would be deductible up to 50% of income.

Regarding bargain sales, it is now generally no longer possible to avoid gain by selling appreciated property to a charity at cost. Formerly, the profit, if any, was measured by the amount received less the entire cost of the property. Now only a portion of the cost is taken into consideration.

Again in the case of an individual having an undepreciated aircraft, if he sells part of the aircraft and contributes part, the contributed part would be fully deductible; and the part sold would not be taxable because it would not exceed his undepreciated tax base. Unused contributions in excess of 50% of contribution base, may be carried forward for 5 years.