Tue, Oct 17, 2017

What is the Vallarta Sailing Foundation?

It is a California Non-Profit public foundation organized for and operated exclusively for charitable and educational purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or the corresponding provision of any future United States tax code. The principal offices for the transaction of the business of the Corporation is located at Vallarta Yacht Club, Paseo de los Cocoteros 001 Int. 20, Nuevo Vallarta, Nayarit, Mexico 63732.

What is the purpose of the Foundation?

The specific purpose for which this Foundation is organized is to provide youth education programs to encourage an interest in maritime arts and sciences, to foster national and international amateur sports competitions, and to support the development of certain skills related to maritime employment including fishing, boating and care and use of the marine environment Additionally, the Foundation may engage in any activities that are reasonably related to or in furtherance of its stated charitable purpose , or in any other charitable activities, as allowed by law.

How does the Foundation Receive its funding?

The Foundation creates its funding through individual and corporate donations, fundraising activities, auctions and raffles, etc. These funds are either given to the Foundation’sTreasurer for safe keeping sent directly to the Foundation’s USA mailing address or sent directly to its non-profit tax exempt account at the Danville, California branch of Citi bank. In the near future funds can be donated via major credit cards and PayPal as well.

What does the Foundation do with the funds that it raises?

Qualified organizations and individuals meeting the criteria as defined in the Foundation’s PURPOSE are welcome to submit applications for grants. The Foundation Board of Directors evaluates the applications monthly and approves grants based on various factors including merit and available funds. The Foundation is authorized to maintain a $250.00 petty cash fund and may lawfully spend no more than 5% of annual funds on administrative expenses. During the calendar years of 2015, 2016 and 2017 the Foundation’s annual tax exempt funding cannot exceed $50,000.00.

Given the charter of the Foundation, I'm assuming that funds received by the foundation for slips would then be passed on to VYC as a grant. Would these funds then go to the VYC general fund, or would they have to be used for a specific purpose?

The funds collected go into the Foundation's general funds (unless they are donated restricted to a specific use).  The Foundation then receives requests for grants (assumedly from VALLARTA CLUB DE YATES A.C.) for specific or unrestricted purposes. The Foundation Board meets once a month to evaluate the requests and approves/disapproves/changes in the amount of the grant request.

It seems an unrestricted grant could be made to any "charitable" non profit.  However, it is the Board’s thinking that we should be cautious and make the grants restricted to the approved grant request purpose that meets the specific criteria defined in the Foundation Bylaws. However, if the grant covers what otherwise would have been spent by the VYC general fund, the resultant savings to VYC’s general fund could conceivably then be available to purchase items such as tables/chairs and other general needs/improvements.

How can VYC members, especially, benefit from this relationship?

There are any number of ways that our members can benefit while supporting our Junior Sailing program and the future Mexico Sailing Center. Principal ways of support are through donations, equity trusts, membership dues, fundraiser dinners and auctions, raffles, etc.

Following are two suggestions that I recommend approval be granted:

  1. Previously approved Gold Flag Level Membership’s $1,500.00 donation may be made directly to the Vallarta Sailing Foundation or to the Vallarta Club de Yates. A.C.In either case, the Club Flag Member donor receives all the privileges of the Gold Flag member status. However, any donation (less the fair market value of benefits received) by the Foundation are USA tax deductible. The IVA benefit of the Bar & Restaurant 15% additional discount to purchases is estimated at $60.00 for each month that resident or minimum dues applies plus the reduced minimum dues required of a Gold Flag member.

  2. The Foundation would accept donations for the two (2) PV Marina gifted slips in the amount, or more, of the current Marina published rates. Any amount donated above the fair market value of the above service benefits received qualifies as a valid IRS tax deduction. And, because this donation is made to a USA tax exempt public foundation, there is neither a Sales or IVA tax; therefore yielding an annual cost avoidance of $1,107.53 to the Club member .This example is a comparison of the annual true cost of acquiring, by donation, one of the two Marina slips granted to the Vallarta Yacht Club between an equal payment to the the Marina or Vallarta Yacht Club A.C. than to the Vallarta Yacht Club Sailing Foundation. It assumes a full year agreement with the donation equivalent to the existing Marina rates including the 10% discount during the high season. It also assumes the boats are equal lengths of 38 feet. Electricity and Clean Marina fees are not included. All other Marina services are included.

Can I donate with PayPal or credit card?

Yes! Vallarta Sailing Foundation is a registered chartiy with PayPal. Donating by PayPal or credit card is as simple as clicking the button below

Do you want to suggest that a friend donates? Send them this link by email: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=QRSDG8Z7X3UHG

Thanks for your support of sailing in Banderas Bay!

 

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