2026-08-31T13:54:30-04:00 2024-12-31 990EZ 2024-01-01 912064544 Reach for the Stars Hot Air Balloon Foundation REAC 9515387368 32365 THOMPSON RD WINCHESTER CA 92596 Brian Campbell Lynch Chief Executive Officer 9514805640 2026-09-01 2024 X WWW.REACH4THESTARS. ORG X X 129815 X 10478 116519 0 0 0 0 2818 129815 21997 22672 800 51903 97372 32443 10171 0 42614 X 11671 40130 0 8489 11671 48619 1500 6005 10171 42614 To provide the experience of hot air balloon flight to people with disabilities serious illness and limited mobility and to their families and caregivers at little or no cost to them: the organization provides free tethered rides at community events and at camps serving children with disabilities and offers accessible flights in its local area at rates below the market price of comparable rides with the proceeds helping to sponsor its free events; and to advance public understanding of accessible aviation through community events and educational demonstrations. The organizations accessible-ride program operated aboard its new aircraft in its first full season: the Pala Spirit N703PC was operated on 48 flights totaling 75.1 hours all flown by the chief pilot together with tethered ride operations at community events that are not individually logged; the chief pilot flew the RJ 105 on 2 flights 1.6 hours. Passengers were the organizations own including people with disabilities serious illness and limited mobility and their families and caregivers carried at rates below the market price of comparable rides. The Pala Spirit carries the mark of Pala Casino Spa Resort which pays for services under a written marketing services agreement. It also carried parachutists aloft in its own balloon in March attended the June unveiling of the Alpha 5 world-record balloon at the Air Force Museum in Dayton Ohio and received a 10,000 memorial gift. Not fewer than 100 passengers were flown see Sch. O. 0 91654 91654 Brian Campbell Lynch Chief Executive Officer and Director 20 19017 0 0 Kimberly Zandstra Lynch Chief Financial Officer and Director 5 2980 0 0 David B Lynch Secretary and Director 2 0 0 0 X true false false false false 0 false false false false CA Brian Campbell Lynch 32365 THOMPSON RD WINCHESTER CA 92596 9515387368 false false false false false false false false X false false false NONE NONE true X 1710 1571 3970 9713 10478 27442 9797 6973 62934 69133 116519 265356 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11507 8544 66904 78846 126997 292798 0 0 1500 5800 53905 61205 0 0 10538 38666 16093 65297 0 0 12038 44466 69998 126502 166296 0 1 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 1313 232 13919 8679 2818 26961 12820 8777 80823 87525 129815 319760 0.5201 0.00 0 0.00 X Part III - Line 1, Unusual Grant Lists | Name of the Contributor:, Date of Grant:, Year:, Amount:, Description:| Pala Casino Spa Resort09 19 2022, "2022", $40817, Excluded as an unusual grant under Reg. 1.509a-3c3 and 4. A capital contribution from Pala Casino Spa Resort which had made no prior contribution restricted to the purchase of the organizations accessible hot air balloon a capital not operating purpose and expended for that purpose in the year received; the first installment of one giving decision for one equipment lot completed in January 2023. Attracted by the organizations publicly supported character and long record of accessible-aviation programming unexpected in amount against its prior giving history and by reason of size it would adversely affect public charity status if included. No condition reserved control to the donor which holds no board position. The donor is treated as a disqualified person; all of its other receipts are excluded from public support on line 7a. Its August 2024 services agreement pays for services at stated rates; no comparable capital gift has been made since. Records retained.| Pala Casino Spa Resort01 11 2023, "2023", $44922, Excluded as an unusual grant under Reg. 1.509a-3c3 and 4. The balance installment of the same capital contribution from Pala Casino Spa Resort described for 2022 restricted to the purchase of the organizations accessible hot air balloon a capital not operating purpose and expended for that purpose in the year received; with the 2022 installment and the January 25 2023 ground-support gift one giving decision for one equipment lot. Attracted by the organizations publicly supported character and long record of accessible-aviation programming unexpected in amount against its prior giving history and by reason of size it would adversely affect public charity status if included. No condition reserved control to the donor which holds no board position. The donor is treated as a disqualified person; all other receipts from it are excluded on line 7a. Its 2024 services agreement pays for services at stated rates; no comparable gift since. Records retained.| Pala Casino Spa Resort01 25 2023, "2023", $97394, Excluded as an unusual grant under Reg. 1.509a-3c3 and 4. A capital contribution from Pala Casino Spa Resort restricted to ground-support equipment for the organizations accessible hot air balloon chase vehicle trailer; a capital not operating purpose and expended for that purpose in the year received; with the balloon installments of September 19 2022 and January 11 2023 one giving decision for one equipment lot from a donor with no contribution before September 2022. Attracted by the organizations publicly supported character and long record of accessible-aviation programming unexpected in amount against its prior giving history and by reason of size it would adversely affect public charity status if included. No condition reserved control to the donor which holds no board position. The donor is a disqualified person; its other receipts are excluded on line 7a. Its 2024 services agreement pays for services at stated rates; no comparable gift since.| Part III - Line 12 | Year:, Amount:, Description:| 2020, 1313, Crew lodging reimbursement 350 a returned security deposit 617 and an insurance premium refund 346| 2021, 232Bank and PayPal balance adjustments and voided checks written back| 2022, 13919Principally a single 13,249 music video production payment received in 2022 plus small miscellaneous receipts| 2023, 8679Merchandise sales 70 other miscellaneous receipts 2,720 receipts carried without an assigned category 744 and a cost-sharing reimbursement 5,145. The 10,000 sale of a shuttle vehicle is excluded as a capital-asset sale and a 13,694 voided check written back in the books is excluded as it is not a receipt.| 2024, 2818Reimbursements of expenses and vendor refunds - crew lodging reimbursements vendor service refunds an insurance premium refund and small bank and PayPal balance adjustments| RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED Part I, line 8 | Other Revenues:, Amount:| Reimbursements of expenses and vendor refunds - crew lodging reimbursements vendor service refunds an insurance premium refund and small bank and PayPal balance adjustments, $2818| Part I, line 16 | Other Expenses:, Amount:| Insurance, $20162| Balloon equipment and maintenance, $9624| Propane and fuel, $7100| Crew and event supplies, $1124| Filing fees and licenses, $2935| Travel, $2415| Event costs, $2215| Office supplies, $928| Internet and telephone, $590| Vehicle and chase crew, $500| Bank and payment processing fees, $40| Vehicle repairs and maintenance, $3845| Pilot certification and medical exams, $425| Part I, line 20 | Explanation:, Amount:| Line 20 is zero. The organization reports on the accrual basis. Amounts owed to the organization at December 31 2024 and received after year end are reported on line 24 and amounts the organization owed at December 31 2024 that had not cleared its account at year end are reported on line 26., $0| Part II, line 24 | Explanation:, BOYAmount:, EOYAmount:| Program service receipts earned in 2024 and received after year end including amounts billed to the sponsor for services provided in November and December 2024 and crew lodging paid on December 31 2024 for the organizations January 2025 Lake Havasu event carried as a prepaid amount. See the Part II explanation in Schedule O. Also included is 1,894 collected by the organizations online payment processor in December 2024 and remitted in February 2025., $0, $8489| Part II, line 26 | Explanation:, BOYAmount:, EOYAmount:| Amounts that had not cleared the organizations account at year end including a truck repair advanced by an officer on a personal credit card and reimbursed by the organization in January 2025 and crew lodging paid on December 31 2024 by card for the organizations January 2025 Lake Havasu event the card debit not having cleared the organizations account at year end. See the Part II explanation in Schedule O., $0, $6005| Fees for pilot services rendered in July 2023 unpaid at December 31 2023 and paid in February 2024., $1500, $0| Part V, line 33 | Explanation:| LINE 33. On August 31 2024 the organization executed a five-year Promotion and Marketing Services Agreement with Pala Casino Spa Resort under which it flies its accessible program balloon bearing the sponsors mark and is paid for services at stated rates; see the Schedule O notes for Part I line 1 and Part V line 35. The activity furthers the organizations existing exempt purpose. It is reported here because the organizations recent annual filings were made on Form 990-N and this is its first Form 990-EZ since tax year 2009.| Part I, Line 12 | Explanation:| COMPENSATION. The organization has no employees and runs no payroll. Line 12 reports fees paid to the organizations officers for pilot services rendered as independent contractors see the officer compensation note. Line 13 reports fees paid to non-officer pilots and crew members for balloon operations all rendered as independent contractors. The cost of the pilot medical certification required to fly the organizations aircraft is reported on line 16. Part IV, General | Explanation:| OFFICER COMPENSATION. The offices of Chief Executive Officer Chief Financial Officer and Secretary are uncompensated positions; the organization pays nothing for service as an officer or director. The amounts reported for Brian Campbell Lynch and Kimberly Zandstra Lynch are fair-market fees for professional balloon-pilot and flight-operations services rendered to the organization as independent contractors reportable on Form 1099-NEC. Those services are separate from and were performed in addition to their officer duties and were compensated at rates comparable to what the organization would have paid an unrelated commercial balloon pilot for the same work. The 3,845 vehicle repair reported in other expenses was a repair to the organizations truck advanced by an officer and reimbursed by the organization; it is not compensation and is not included in Part IV. The 1,124 reported in other expenses as crew and event supplies consists of three purchases made on the organizations own debit card at a warehouse retailer: 438 on January 17 2024 for the organizations participation in the Lake Havasu balloon festival 573 on July 2 2024 for the Bear Valley Springs balloon festival and 112 on July 11 2024 for local flight operations. Personal charges made on the same card during the year were separately identified and repaid to the organization in full during the year in some cases by a single payment covering more than one charge and in some cases by offset against amounts the organization owed the officer. GOVERNANCE. The organizations Statement of Information filed with the California Secretary of State on February 8 2024 lists the officers as reported in Part IV. During 2024 Kimberly Zandstra Lynch acted as the organizations chief executive signed agreements on its behalf in that capacity and held the organizations books records and mail; the officer reported as chief executive officer served during 2024 as the organizations chief pilot. The board of directors during 2024 consisted of these same three individuals. Part III, Line 28 | Explanation:| PROGRAM ACTIVITY AT COMMUNITY EVENTS. In addition to the flights reported on line 28 in 2024 the organization provided tethered balloon rides at community and disability-serving events. At the Joni and Friends camp for children with disabilities the organization flew at fuel cost and at Gateway Nazarene at cost. At the Great Reno Balloon Race the Lake Havasu balloon festival the Temecula Valley Balloon and Wine Festival and the Bear Valley Springs balloon festival the organization was paid an appearance fee a per-rider fee or reimbursement of event costs reported on line 2 and priced well below market so that the organization could provide accessible rides at those events; at the Pala Mesa events the organization was also paid reported on line 2 for a static display of the sponsored balloon shown to the public with photo opportunities rather than for rides; at Reno attendees rode free of charge at Havasu the festival sold the tickets and riders using wheelchairs were taken to the front of the line at every event. The organization also offered accessible flights to the public below the market price of comparable rides. BASIS OF THE PROGRAM MEASURES. The organization reports program activity as flights and flight hours for each aircraft it operates. Those figures come from flight-level records maintained in the chief pilots aviation logbook which also records flights flown for other operators; only the organizations own aircraft are reported. During 2024 the organization operated its sponsored balloon on 48 logged flights all flown by the organizations chief pilot together with tethered ride operations at community and disability-serving events that are not individually logged. The organization flew not fewer than 100 passengers during 2024. In addition to the flights reported on line 28 during 2024 the organization carried members of the public on tethered rides at community and disability-serving events. Tethered ride operations are not individually logged and the organization does not record the number of riders carried; a single such event routinely carries in excess of one hundred riders. The stated figure is therefore a conservative minimum based on the chief pilots direct knowledge of the events flown not a count. The organization is implementing separate program records including tether ridership for future years. Part I, Line 1 | Explanation:| PALA CASINO SPA RESORT RECEIPTS. The organization has a written Promotion and Marketing Services Agreement with Pala Casino Spa Resort executed August 31 2024 under which it flies its accessible program balloon bearing the sponsors mark on regularly scheduled flights and at appearances and invoices Pala for those services; amounts earlier in 2024 were invoiced under the parties prior arrangement. Amounts earned from Pala for 2024 totaled 53,905.08: 9,055.08 reimbursing insurance and vehicle registration costs April 6 6,700.00 for flight operations September 10 22,100.00 of annual fee and retainer October 10 11,200.00 for flight operations December 13 2,750.00 invoiced for November 2024 services and not collected in 2024 and 2,100.00 for the December 2024 monthly retainer invoiced January 1 2025 and collected in 2025. Under section 4.1a of the agreement the annual fee is in consideration of the provision of the Services and the rights granted to the sponsor. Under sections 4.3 and 6 the organization bears the cost of the insurance the agreement requires it to carry including a 5,000,000 aviation liability policy naming the sponsor as an additional insured; 2024 insurance expense was 20,162. All of these amounts are payments for services or reimbursements of costs and are reported as program service revenue on line 2; none is a contribution and Pala is not a Schedule B contributor for 2024. REVENUE CLASSIFICATION. Two amounts recorded in the organizations books as donations were not contributions and are reported on line 2: 5,484.58 from the Temecula Valley Balloon and Wine Festival as reimbursement for event work event logistics and accessible tether operations and 20,608.52 from an individual for carrying parachutists aloft in the organizations own balloon in March which is the conduct of the organizations exempt aviation activity. Total revenue is unchanged by these classifications. Part I, Line 19 | Explanation:| BEGINNING NET ASSETS. The organizations cash and savings balances at December 31 2023 were 11,671.18 per its SDCCU account statements. At that date the organization had one unpaid liability 1,500 of fees for pilot services rendered in July 2023 which were paid in February 2024 so its net assets at the beginning of 2024 on the accrual basis are 10,171.18. No Form 990 or 990-EZ was filed for the years immediately preceding this return for which Form 990-N was filed; the organizations returns for 2022 and 2023 are being filed and carry the same balances forward. Part II, Line 24 | Explanation:| The organization reports on the accrual basis. Its cash at December 31 2024 consisted of its checking account 39,832 its savings account 253 and its payment application balance 45 reported on line 22. Other assets on line 24 consist of 6,814 of program service receipts earned in 2024 and received after year end including amounts billed to the sponsor for services provided in November and December 2024 and 1,894 collected by the organizations online payment processor in December 2024 and remitted to the organization in February 2025 and 1,675 paid on December 31 2024 by card for crew lodging for the organizations January 2025 Lake Havasu event which is carried as a prepaid amount because the lodging was provided in 2025. Total liabilities on line 26 consist of 6,005 of amounts that had not cleared the organizations account at year end including a 3,845 truck repair advanced by an officer on a personal credit card and reimbursed by the organization in January 2025 and the 1,675 lodging charge described above. The vehicle is the organizations chase truck; under section 4.3 of the sponsorship agreement the organization bears the cost of its repair and maintenance. The organization also holds balloon and support equipment purchased with restricted grants received in 2022 and 2023 which is not capitalized on its books. That equipment was acquired with the 183,133 of restricted grants described in Schedule A Part VI. The organization had no receivables at December 31 2023 and one unpaid liability of 1,500 for pilot services rendered in July 2023 which is reported in the beginning-of-year column and was paid in February 2024. The organization has no notes payable no loans and no borrowings. That reimbursement was an ordinary expense advance repaid in the normal course of operations not a loan. Part V, Line 35 | Explanation:| The organization earned 116,519 of program service revenue in 2024. Of that 53,905 was earned from the sponsor under a promotion and marketing services agreement executed August 31 2024 20,608 from an individual for carrying parachutists aloft and 3,840 from a company for the organizations attendance at a museum event both described below and 4,000 from a second sponsor described below. The organization has determined that none of this revenue is unrelated business taxable income because in each case the income is produced by the conduct of the organizations own exempt activity and not by a separate trade or business carried on for the production of income. Under the sponsorship agreement the organization flies its accessible-ride balloon a minimum of six times a month carrying its own passengers receives a monthly retainer of 2,100 and an annual fee of 20,000 and is paid 350 for a regular additional flight 1,000 for a VIP flight 700 per hour for appearances and 250 per hour for standby. The sponsors mark appears on the balloon envelope on vehicles and trailers and on crew shirts. The sponsor holds approval rights over use of its marks under section 1.4 of the agreement the agreement calls for monthly written status reports from the organization covering the sponsored balloon and the organization is responsible under section 4.2 for taxes imposed on its gross receipts. The flights flown under the agreement are the same accessible balloon rides the organization exists to provide carrying the organizations own passengers and the display of the sponsors mark is acknowledgment of support. The agreement also contemplates balloon pins and trading cards to be produced and paid for by the sponsor. Pins bearing the sponsors mark a customary balloon-event keepsake were produced by the sponsor and offered to passengers; they carry no coupon no price information and no inducement to purchase. The trading cards which would have carried a coupon for the sponsors resort were never produced or distributed in 2024. The 20,608 was paid by the individual carried for carrying parachutists aloft in the organizations balloon which is the conduct of the organizations exempt aviation activity. The organizations balloon basket is fitted with an exit door and the organization carried the participant for whom exiting through a door rather than climbing over the basket wall was materially more accessible together with the experienced safety jumper who jumps alongside him; the other participants in the same operation flew in a second balloon not the organizations which had no exit door. The 3,840 was received for the organizations attendance at the National Museum of the United States Air Force in Dayton Ohio in June 2024 where a balloon donated to the museum was unveiled and the organization sent its chief pilot to represent it; 2,250 of that amount was a fee for three days of attendance and 1,590 reimbursed the organizations travel costs. The 4,000 received from the second sponsor was payment for providing a tethered display balloon carrying that sponsors banner at a balloon festival organized by a third party. The organization was paid for flying and tethering its own balloon the activity it exists to conduct and the display of the sponsors banner is acknowledgment of support. The organization respectfully requests abatement of any late-filing penalty for reasonable cause. Reach for the Stars Hot Air Balloon Foundation is a small volunteer-operated public charity with no paid administrative staff and no professional accounting support. The organization filed Forms 990 and 990-EZ through tax year 2009. The individuals who prepared and filed those returns later ceased to be associated with the organization its gross receipts fell below the Form 990-N filing threshold and from 2014 through 2024 it filed Form 990-N each year and believed in good faith that it was in full compliance. Beginning in 2022 one-time restricted capital gifts for an accessible hot air balloon and its ground equipment followed by growth in program revenue as the organization began operating that aircraft carried gross receipts back above the Form 990-N threshold without anyone then serving the organization recognizing that a different form was again required; that good-faith error is the cause of the failure to file this return by its May 15 2025 due date. Kimberly Zandstra Lynch the organizations chief financial officer and a director acted as its chief executive during 2024 and held its books records and mail. Later in 2025 she and David Lynch the organizations Secretary both died which delayed discovery of the error and its cure. The organizations remaining officer required that period to obtain and reconstruct the organizations financial records which had been held by the deceased officers and to determine the correct form for each open year. The organizations current Chief Executive Officer who served during 2024 as its Chief Pilot on taking over the organizations responsibilities identified the error reconstructed the organizations complete financial records from its bookkeeping files and bank statements determined the correct form for each year and is filing every outstanding return before any contact from the Internal Revenue Service. The organization has adopted procedures to file the correct form on time going forward and requests that the penalty be abated.