The AMA Foundation
Rich Hanson
richh@modelaircraft.org
Established in 2013, the Academy of Model Aeronautics Foundation exists to inspire the financial support of aeromodeling as a hobby, sport, and scientific pursuit, and as a component of the aviation continuum.
The AMA Foundation serves as a supporting organization conducting fundraising exclusively on behalf of the AMA. This month, AMA Foundation Board Chairman Dan Bott Sr. will share his thoughts on the role of the AMA Foundation and the hobby’s future.
It’s About the Future
Three years ago, the AMA Executive Council (EC) decided to separate the role of charitable giving from AMA’s member services role. It created the AMA Foundation as a separate 501(c)(3) charitable organization.
In today’s world of not-for-profit businesses, separating charitable gifting from the day-to-day operations is common; the EAA and Aircraft Owners and Pilots Association have created separate foundations for gifting. Most colleges and universities have separate 501(c)(3) foundations. The reasons are twofold: taxes and the mission of the boards or leadership roles of the entities.
When you look at the roles of the AMA and the AMA Foundation, it’s clear that payments made to the AMA are for services rendered. Your annual dues are not donations; they are membership fees and are not considered tax-deductible. Donations to the AMA Foundation are gifts and, in nearly every case, are considered fully tax-deductible because the donor does not receive any direct benefits or services.
In today’s complex tax environment, it’s cleaner to separate the books. However, I submit that the real reason for separation is the focused efforts of the AMA EC and the role of the AMA Foundation Board. The AMA Foundation does not deal with the politics or day-to-day operational issues of the AMA; it focuses on the future opportunities for raising money. The ultimate objective is to build an endowment that will provide additional financial means of supporting the AMA’s mission.
The benefits that AMA members receive from their annual dues would cost approximately $400 if purchased separately. A successful foundation and a growing endowment will continue to keep membership costs low, while allowing AMA to provide greater services. The bigger and stronger the AMA, the more assurance that the hobby can operate with the freedom it’s enjoyed throughout the past 81 years.
AMA’s power and strength has been put to the test. It has faced the challenges and has played a leadership role in protecting model aviation and modelers’ rights to access the airspace and their freedom to enjoy the hobby without intrusive government intervention. The hobby’s future and AMA’s strength will continue to come from its growing membership base (nearly 200,000 members).
This is where the AMA Foundation comes into relevancy. We provide a path for the senior generation of model aviators to secure the hobby, allowing future generations of modelers to enjoy their passion for aviation.
It was exciting to participate in Rat Racing and fly Control Line Combat in the 1960s when RC was getting started. I never imagined that one day I would fly gyro-stabilized RC jet turbine aircraft and large-scale float planes.
I’m not a big multirotor or FPV flier, but I understand the passion for flight we all share. I don’t know what the hobby will look like in 2036 when the AMA turns 100 years old, but model aviation will continue to provide a pathway to careers in technology, engineering, aerospace, and aeronautics. Our country needs passionate, inspired young people to keep America as a leader in science and technology, and AMA will play a major role in that process. In 2016, the US graduated 200,000 engineers from colleges and universities. That same year, China graduated more than 2 million engineers. China has four times the population of the US, but graduated 10 times the number of engineers.
The AMA Foundation is mandated to build a multimillion-dollar endowment that will support AMA into the future. Our fundraising campaigns will allow current AMA education programs to expand, will provide more secure flying sites, more STEM-based programs, and provide a 10-fold increase in scholarships to those who seek science, technology, and engineering careers inspired by model aviation.
I believe we can achieve our objective. The baby-boomer generation was the most prosperous wealth accumulator in history. Currently there are 1.1 billion baby boomers worldwide. Financial forecasters calculate that more than $20 trillion of US wealth will transfer in the next 20 years. The AMA has 67,000 members over the age of 60.
Using an average life expectancy of 84 years of age, 2,791 AMA members a year will pass their estates to their heirs. Many of our members will donate some or most of their wealth to charities, churches, schools or universities, food banks, and some to their favorite hobby foundations. With the help of our affluent senior members, the AMA Foundation will meet its objective.
Our passionate members will continue making a difference to this great hobby with their generous monthly and annual gifts to the AMA Foundation. You can help ensure model aviation’s future for generations to come through planned giving in your trusts and wills.
The AMA Foundation for the Future Jet Rally in Ottumwa, Iowa, is August 25-27, 2017. As part of the State of Iowa Aviation Week, the Governor’s office and local businesses are holding an air show, including four days of open RC jet flying at the Ottumwa Regional Airport.
For more information about the AMA Foundation, visit our website or speak with our staff about gifting opportunities and/or estate planning.
—Dan Bott Sr.
