A few nights ago, News Center 5 ran a segment on Vehicle Donation Programs. It was a negative report prompted by a donor whose car was grossly undersold by an Auction that acts as the Car Donation Agent for the Arthritis Foundation and other charities. The story emphasized how the auction has no incentive to demand maximum sales proceeds from donation cars since they make a flat $50 on every car donation they handle, regardless of what the cars sell for. The charity ended up with $200 from a car that was worth substantially more--it eventually sold for $1650. The winner, in this case, was the car dealer who purchased this car at auction for far below its wholesale value and sold it for a profit of more than $1,000.
Once again, the News put a negative spin on Vehicle Donation Programs by focusing on this incident. The message was that charities are not the winners when it comes to car donations.
We have contacted ABC News to assure them that NOT ALL VEHICLE DONATION PROGRAMS work the same. We offered to share information on how our program works and how it is very different from that featured in their story.
First of all, we work primarily with Manheim Auctions across the country. We receive a detailed condition report on every vehicle that's donated, and set a floor price for the sale of every vehicle. If our floor price is not met, we require that the vehicle be run again in upcoming auction sales. Our floor price takes into account all the mechanical and cosmetic repairs that need to be made to the vehicle. The dealer's purchasing our donation cars most often have to do work on the vehicles to prepare them for sale to the public.
Second, commercial auctions are not our exclusive outlet for car donation sales. All cars donated from MA are brought to our lot for inspection. We personally evaluate every vehicle to determine if a car is ?safe? to be sold to the public and if so, which sale venue will generate the greatest proceeds for you. We sell some cars directly from our lot, others are sold on e-bay, and others are sent to auction.
Unlike the Car Donation Program Featured in the News, we have an incentive to sell cars for maximum value. Remember, we split net proceeds with you, 50/50. Our business is dependent upon generating maximum proceeds from all car donations.
We know we're doing something right when our car donors tell us how pleased (and often surprised!) they are at the amount we're able to sell their cars for. After all, almost every donated vehicle comes with a package of ?issues? that need to be fixed?.issues that the donors did not want to invest in.
The News story concluded with the message that charities are losing with vehicle donation programs. We disagree, and we hope you do too. If you value the assistance our Car Donation Program provides to your charity, we encourage you or your PR person to contact the news, either via e-mail or phone, and let them know that there are reputable donation programs out there that really do help.
If you have an old car in your garage (or backyard) and you don't have a clue how to get rid of it, one way is to donate your car to a charity. You might think that your old car won't matter at all and it's a piece of junk, but your car can still be useful. You will be helping a lot of people, and at the same time gain something for yourself. Car donation is the best option to get rid of an unused car while giving you the chance to help yourself and others. Your charitable donation might mean a lot, without you even realizing it.
You can get started by finding a charitable institution online. It is best to search for them online because it is the easiest, fastest way to get the information you need. While online, you can speak to a representative and they will explain the steps and procedures and the law regarding tax deductions. If is important that you are aware of the tax deduction rules so that you'll know what to expect regarding the benefits you'll get from your donated car.
If you donate your car, you can claim a tax deduction of up to $500. If the charity sells your vehicle for more than $500, you will be notified with the exact amount of the sale, and can use this amount on your tax return. The market value will depend upon the kind of vehicle you donate. Not all values are equal. For example, late model cars and vans that have seen a lot of miles can be used, though they might need some costly repairs before they are ready to be put back on the road by the charity.
Donating your unused car to a charity is a great way for you to get a deduction on your taxes. Some of the organizations use the cars for their services and personal travel, while the others sell them directly to raise funds. You should also know that some programs aren't run by charitable institutions, but rather salvage companies that use the name of the charity as a front, and in return they pay the charity a set amount for each of the vehicles donated.
To make sure that you are dealing with a trustworthy charity, you should ask what they are planning to do with your vehicle. If they plan to sell your car, will they use a broker or not? You should also ask if the charity is receiving a large amount of the selling price, so that you know how much of the money will go directly to the cause you are trying to support. Your best choice is a charity that is collecting a percentage of the sales price, rather than the per-car flat fee.
Both Robert Thomson & Daniel Richards are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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