Donating A Bike To The New Foundation

All this monetary talk is making my head spin. I hope I am not out of line asking these questions. Now that a lot of us are getting on and many have no suitable heirs and wish to avoid the auction route to redistribute our treasures thereby avoiding Capital Gains and hassle why not donate our bikes to this new foundation? Does one have to be a member of the AMCA to donate a bike? If that is possible who would perform an appraisal that would be accepted by the foundation? Would the appraised value be 100% tax deductable? Does the IRS have to approve of the appraiser? I like to watch the English antique roads show from time to time and have always found it intersting how the appraisers bump up the "value for insurance" , is this because insurance companies always try to screw people? Of course this whole scenario is only of interest to the small percentage of wealthy collectors who reside in that charmed tax bracket where a high appraised value would be beneficial. As an impoverished Canuk I am double cursed! Might this be a way to build up a nice collection for the foundation , if that is it's ultimate goal?

[Pete Gagan]

Hi Barry:
An excellent question.
The new AMCA Foundation can accept donations of machines and/or money, and give out tax receipts, which are fully deductable by our American friends. Canadians, like you and I, are only allowed to use these receipts against any US income we happen to have. I expect other countries have similar rules.
As Bonhams & Butterfield's senior motorcycle consultant, I would expect my estimates would be acceptable, and I am sure we will have other experts availble as well.
Anyone donating a bike should talk to the foundation about its future if that's a concern. Sometimes museums will sell donated items and use the funds for other acquisitions or expenses. Consider receiving three identical Honda Gold Wings, for example. If resale is not wished, then the Foundation can either agree, or not accept the item.
The plan in place is to have rotating displays of machines, loaned primarily by members. We will have a few owned items, obviously.
Pete

[Barry Brown]

Thanks for the explanation. There is a great club called The American Truck Historical Society. I have been a member since almost day 1 circa 1980. They have about double the AMCA membership. A few years ago they bought some land near Kansas City , Missouri and built a very nice headquarters which houses their vast library as well.( mostly donated) I don't believe they collect trucks as well but I could be wrong on that. You can imagine the space required for all those Macks and Peterbilts! As much as I love Hershey and the aura surrounding it I think it is a mistake not to have the clubs headquarters nearer the geographical centre of America. There has got to be a reason why Davenport is the big one. If the club ever does build a museum I am sure land must be a lot cheaper in Kansas than Pennsylvania. Oh , well I suppose the next few years will be an education for all of us.

[*JU]

And don't forget the National Motorcycle Museum in Anamosa, IA. That's a great spot to visit...2 hrs from Davenport. They have/are moving to the old Walmart building in town. I wonder if a conversation ever took place with them before the "big" commitment was made.
JU

[Lonnie]

Before donating to any of these museums started and run by individuals, one would need to consider the ramifications that would arise upon the demise of the individual who has started and/or operates the museum. Many folks treat the term "museum" as some sort of sacred never-ending trust. However, museums of that sort can come and go, all it takes is an auction. A case in point is what happened to the vast Harrah's collection and to Otis Chandler's collection - they died, adios bikes back into someone's private collection. There are other museums with an independent management, many of long standing. Examples of that are the AMA museum and the AACA museum and of course the Smithsonian. In addition there are many local transportation museums, often managed by historical foundations, that would welcome a donation. One that comes to mind is the North Carolina Transportation Museum in Spencer, NC. I'm not disparaging anyone here, but "look carefully before you leap". It is my hope that if it ever came to that for me, that my bikes would be very well used and as such of no value to a museum (Ride 'Em, Don't Hide 'Em).

From everything I have read on the various threads in this forum I believe that it is the intent of the AMCA Foundation to establish a museum presence for the long term such that a donation, in line with Pete's post, would be safely ensconced in good hands. Speaking of which, I would suggest that everyone go online to the AACA and look at the literature that is available from their library and archives. I peeked at Corvair information and was pleasantly suprised at what is available. By placing the AMCA archives in their (our) electronic database any information we desire would be likewise available at a reasonable copying charge.

And if this AACA/AMCA museum grows such that events are held there and becomes the center of our hobby as many of us desire, this could be a great venture. Granted, it will take time, but all good things do.

Lonnie C. from SC

[Pete Gagan]

Lonnie is right on the money here, if you'll pardon the pun. A foundation such as ours is not controled or owned by an individual, but indirectly by the club. It will have an "endowment fund" which is the share of the AMCA's treasury which had caused concern by some members on here. An endowment fund is not spent, as a general rule, although interest earned on it can be used for operating expenses. The plan is to build this fund from donations, bike raffles, and fund raising of various types. Capital from such a fund is usually only used by a foundation for the purchase of land and/or buildings, which in our case is unlikely in the forseeable future.
Pete Gagan

[Lonnie]

Regarding "Valuation for insurance purposes", ironically I was watching "The Antiques Roadshow" on PBS just the other week and someone, having been told the two different prices for "value at auction" and "value for insurance purposes", asked the same question about the difference. He was told the auction value was what he could reasonably expect to receive at auction with interested legitimate buyers (including dealers who are buying for resale) and insurance valuation was what he could expect to pay to purchase that exact same item. Keep in mind that if he had to buy a replacement he would probably end up having to buy it from someone who bought it at auction and is expecting a profit!

Lonnie C from SC