Marine Vessel Acceptance Policy

PURPOSE

The purpose of this policy is to establish clear, consistent, and risk-managed criteria for the acceptance of donated or transferred vessels by the Navy League of Canada (“the Navy League”). The Navy League accepts donations of vessels that further its charitable objectives and which may be deployed for cadet or volunteer training However, all donations and subsequent actions must comply with Canadian charity law, particularly the requirements of the Income Tax Act (ITA) and Canada Revenue Agency (CRA) guidelines governing charitable donations.

This policy also ensures that all vessels accepted to support the Navy League’s mission, comply with insurance requirements, and can be operated safely for youth and volunteers.

SCOPE

This policy applies to:

• All donated, gifted or transferred boats and watercraft
• All Navy League of Canada Branches, Divisions, and National assets
• All vessels intended for training, seamanship, safety, or support activities

NATIONAL AUTHORITY

Final authority for vessel acceptance rests with:

• The National Executive Director, or
• A designated corporate officer, as delegated by the National Board of Directors

Branches or Divisions are not authorized to accept vessels independently or without the prior written approval from the National Authority.

ELIGIBLE VESSEL TYPES

The Navy League may consider acceptance of the following:

• Sailboats
• Powerboats
• Rigid or inflatable safety boats
• Support or utility vessels

Acceptance is subject to vessel condition, suitability, and insurability.

GENERAL ACCEPTANCE CRITERIA

A vessel may be accepted only if it:

• Supports Navy League program objectives
• Is structurally sound and seaworthy
• Can be insured under the Navy League’s marine insurance policy
• Meets all applicable federal, provincial, and municipal regulations
• Does not impose unreasonable financial, operational, or environmental risk

Vessels are accepted at the sole discretion of the Navy League and the National Authority reserves the right to decline any donation that does not align with the Navy League program objectives or that would impose excessive financial or logistical burdens on the League.

DONATION PROCESS

Before accepting any vessel donation, the Navy League will require the sponsoring Branch or Division to complete the following process:

• Needs Assessment: The sponsoring Branch or Division shall assess how the vessel can be used to support the objectives of the program.
• Valuation: The donor must provide a credible valuation of the vessel, preferably from a qualified marine surveyor. The valuation must reflect the fair market value (FMV), and the Navy League reserves the right to reject or seek an alternative opinion on any provided valuation.
• Donor Acknowledgement: The Donor must submit a written declaration of intent to donate, including the declared vessel valuation and a clear statement that there are no conditions attached to the donation.
• Tax Receipting: Once a donation has been accepted, an official tax receipt may be issued based on a final determination of the vessel’s FMV, in accordance with the CRA guidelines.

AGE AND SURVEY REQUIREMENTS

Vessels under 20 years of age

• Must undergo a basic condition inspection
• May require a survey at the discretion of the insurer or National Office

Vessels 20 years of age or older and greater than 6 metres

• Mandatory marine survey conducted by a certified or accredited marine surveyor
• Survey must be:
  ○ Dated within the last 12 months:
  ○ Suitable for insurance underwriting:
  ○ Free of critical safety or structural deficiencies:
  ○ Successfully complete a water test

Survey Costs

Normally the responsibility of the donor unless otherwise approved in writing.

INSURANCE REQUIREMENTS

No vessel shall be accepted unless:

• It is approved by the Navy League’s marine insurer
• Proof of insurability is confirmed prior to acceptance
• The vessel meets insurer requirements for:
  o Hull condition
  o Machinery and systems
  o Safety equipment
  o Operator qualifications

Vessels deemed uninsurable shall not be accepted, regardless of donation value.

DOCUMENTATION REQUIRED

Prior to acceptance, the following must be provided:

• Proof of ownership (bill of sale or transfer documents)
• Hull Identification Number (HIN) or registration number
• Any available operating manuals
• Transport Canada registration or licensing details (if applicable)
• Marine survey report (if required)
• Written confirmation of insurance approval
• Donor declaration confirming:
  ○ No liens or outstanding debts
  ○ No environmental or legal liabilities
• If the donated vessel includes a trailer or storage cradle or other components, the Navy League will coordinate the legal transfer of these assets consistent with provincial regulations.

FINANCIAL AND OPERATIONAL REVIEW

Before acceptance, the Branch or Division should consider the following:

• Estimated annual operating costs
• Maintenance and repair requirements
• Storage, docking, and transport needs
• Volunteer and operator capacity
• End-of-life disposal considerations

Vessels that create an unsustainable financial burden may be declined.

SAFETY AND COMPLIANCE

All accepted vessels must:

• Meet Transport Canada safety standards
• Carry required safety equipment
• Be operated only by qualified and authorized personnel
• Comply with Navy League policies on youth safety, supervision, and risk management

All accepted vessels equipped with outboard motors must comply with Navy League requirements for fitted propellor guards in accordance with the “Propguard” policy found at appendix A.

ENVIRONMENTAL CONSIDERATIONS

Vessels with known or suspected environmental risks (e.g., fuel leaks, asbestos, contaminated materials) will not be accepted unless remediation is completed prior to transfer.

ACCEPTANCE, REFUSAL, OR DISPOSAL

The Navy League reserves the right to refuse any vessel at its sole discretion Acceptance of a vessel does not obligate the Navy League to retain it indefinitely The Navy League may:

• Sell
• Transfer
• Decommission
• Dispose of a vessel as deemed appropriate and in compliance with policy and law

DONOR ACKNOWLEDGEMENT

Tax receipts, if applicable, shall be issued in accordance with CRA regulations and Navy League financial policies.

For any questions or clarification regarding this Boat Acceptance Policy, please contact the National Office by email at national@navyleague.ca.

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April 2026