On July 1, 2000, about 1145 Eastern Daylight Time, a Maule MX-7-180, N5661P, was substantially damaged while maneuvering near Woodbine, New Jersey. The certificated flight instructor and private pilot were not injured. Visual meteorological conditions prevailed, and no flight plan was filed for the instructional flight conducted under 14 CFR Part 91. The local flight departed Woodbine Municipal Airport, Woodbine, New Jersey, about 1135. The instructor stated that he was demonstrating an "engine out" procedure to the private pilot. "About 200 feet above the ground", the instructor realized that he was not going to make his intended touchdown point. He added full power and attempted to climb, but the airplane continued to descend and impacted trees. Both wings and the fuselage were damaged. The instructor added that there were no mechanical problems with the airplane. The private pilot stated that the instructor added full power about 300 feet above the ground. The airplane continued to sink, and came to rest in trees and shrubbery about 200 feet before Runway 19. The private pilot stated that there were no mechanical problems with the airplane. He believed that the airplane "got behind the power curve".