In the "old days" if the passenger contributed anything, even brought
lunch for the owner, or a "gift for the boat" he became a "passenger for
hire" and a professional license (6-pak or Master's) was required. That
requirement was loosened a bit to allow for sharing of expenses. Now a
guest can make a "voluntary contribution" in the form of money, food or
fuel. But the word "voluntary" is key - The basic test whether the
passengers would have been carried if they hadn't paid. Thus, I think
the "charity auction" fails test and will be considered "passengers for
hire."

This was covered in a CG Circular 12 years ago - I think its still
appropriate:
http://www.uscg.mil/hq/g-m/nvic/7_94/n7-94.htm

Here's part of it:

NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 7-94

Subj: GUIDANCE ON THE PASSENGER VESSEL SAFETY ACT OF 1993

SEC. 506. PASSENGER FOR HIRE.

Section 2101 of title 46, United States Code, is amended by inserting
between paragraphs (21) and (22) a new paragraph (21a) to read as follows:

"(21a) 'passenger for hire' means a passenger for whom consideration is
contributed as a condition of carriage on the vessel, whether directly
or indirectly flowing to the owner, charterer, operator, agent, or any
other person having an interest in the vessel.".

DESCRIPTION - The determination of what constitutes the carriage of a
"passenger for hire" must be made on a case by case basis. This
determination is dependent upon the actual operation of a vessel and the
flow of consideration as determined by the facts of each case. In
general, there needs to be some form of tangible consideration or
promise of performance being passed for a "passenger for hire" situation
to exist.

SEC. 507. CONSIDERATION.

Section 2101 of title 46, United States Code, is amended by inserting
between paragraphs (5) and (6) a new paragraph (5a) to read as follows:

"(5a) 'consideration' means an economic benefit, inducement, right, or
profit including pecuniary payment accruing to an individual, person, or
entity, but not including a voluntary sharing of the actual expenses of
the voyage, by monetary contribution or donation of fuel, food,
beverage, or other supplies.".

DESCRIPTION - Section 507 amends 46 U.S.C. 2101 by adding a definition
of the term "consideration." Although this term was used in the prior
definition of a "passenger," it was not previously defined by statute.
Generally, some tangible amount of worth exchanged for carriage on a
vessel such as payment, exchange of goods or a promise of performance is
required. "Consideration" does not include a voluntary sharing of the
actual expenses of a voyage. Additionally, employees or business clients
that have not contributed for their carriage, and are carried for morale
or entertainment purposes is not included as exchange of consideration.




Tamaroak wrote:
Let's say a licensed master decides to offer to donate a boat ride to a
charitable organization's service auction. This group gets the money
when someone pays for the ride, the buyer gets the boat ride, the
captain gets nothing but a warm fuzzy feeling for contributing to the
charity. This is clearly not a part of any business, and the captain is
not in this business anyway.

Has the captain received compensation for this according to USCG
regulations? Does this mean s/he needs chartering insurance, has to be
documented, etc. to do this annually?

Capt. Jeff