I think one needs to be careful about making assumptions regarding crew contribution or compensation. Every situation is different.
Consider for example, in the past, I regularly chartered with a bunch of friends and we all split the charter costs., After a few years of doing so, find it more economical to buy a boat in charter. I buy the boat, but have everyone contribute to all cruising costs, but not the boat itself, - food,
fuel, etc. fee charged by the company for the week, etc. It's much, much cheaper for the people who joined me that dividing a charter so how am I being unfair? I think that's a much different scenario, than searching for crew to help deliver a boat, they can't manage on their own.
I'd also argue, that if a
captain is looking for crew and crew think the terms are a good deal, it is fair, regardless of what anyone else looking in thinks.
This was a big topic in another sailing forum a couple years ago, so I did some
research into it. People argued that asking crew to contribute was a tax liability, against coast guard regs and against
insurance policies. (For some unknown reason, they also thought $20/day was some magical measure of this regardless of actual expenses.) Since that time, I have looked into all these issues and found no evidence to suggest these accusations are normally true. My
research was limited to the U.S., but I would assume many would be similar in international waters or other countries.
Insurance: I called my insurance company and talked to a friend who is in charge of adjusting. Both told me having people contribute to operating expenses in no way invalidates a policy. Taking people out for profit may. My friend said with his company if it was discovered people were paying the boat owner, it would raise a red flag and they'd look into it, but in the end if there was no intent to make a profit, it would not be an issue.
Tax Burden: Last tax season, I talked to a tax lawyer. He said basically the same. If you are not making
money, there is no tax liability. He recommended if it's more than the typical 2-4 weeks
vacation type you report the
income and expenses as being a hobby, so they are above board. The IRS wants to tax any
income people try to hide, they do not want to consider something like this that does not make a profit a business, because then you would be able to write the lack of profit off as a business loss. They prefer to look at it as a hobby.
Coast Guard: People often quote a coast guard regulation which says something to the effect that anytime someone receive consideration from people on board they need to have their captains
license. What people fail to read is the foot note which specifically says compensation does not include contributions to
fuel, food and other such costs.
Legal Liability. Historically in the U.S., one can look at people who are on property as being Trespassers, Invitees or Licensees. The more business like the arrangement, the more duty there is to protect those on the property from harm. My knowledge of these things is that if there is clearly no attempt to make a profit, one would not have the duty one has to licensees or people one has aboard as a business.
Regarding people you haven't previously known: I think this is something that may raise a red flag in regards to some of the above, but in the end fundamentally changes nothing. Your
taxes, insurance, business status and liability are not directly based on how well you know people. They are based on making
money. However, how well you know them may affect their behavior, likelihood of suing you , etc.
Where's the line?: Is there a certain point, for example, where if you ask people to help with dockage, you will be considered a business? I don't know and at least my friend in insurance says there is no magic line. I think in most cases, it's going to come down to whether or not you are or are trying to make a profit as a business would. The more it appears you are behaving this way, the more likely you are to get into trouble, and that point may not be the same for all the above situations. There may be a point where the coast guard for example, feels you've crossed the line, but your insurance company does not. However, I see no reason (Again, in U.S.) to believe that asking people who sail with you to legitimately
share expenses is an issue in any of these areas. I'll also point out there are many examples of clubs and other shared sailing opportunities that go well beyond food and fuel regularly. I'll also point out that it is when these clubs start behaving like businesses that they tend to get into trouble.
I offer the above not as any expert
advice, but just my perspective on this issue after having taken quite a bit of time to look into it.
If anyone has any examples of capatains/boat owners being held accountable to business standards for legitimate cost sharing, I'd like to hear them.
My experience is that many shared cost cruising situations offer an opportunity for people to sail much more affordably than a charter or
commercial sailing trip would and that most guests/crew appreciate this and gladly contribute to the right experience.
Looking for Like-Minded People
...
.............i2f
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