Donate Your Car USA

We're Back!

2012-08-30T18:30:00.003-04:00

Stay tuned for more posts in the upcoming days!

The Story of One Church & How They Donated a Car to Fundraise

2012-08-02T23:58:00.000-04:00

The members of a church thought that their pastor had lost his mind when he said that a great way to raise money would be by giving away a car. Not just any car would do. It had to be a brand new car with every available option.

The church was in the midst of raising money for an aggressive foreign missionary project, and the church bank account needed a little extra boost.

That is when the pastor came up with the idea for a car raffle. He negotiated a deal with a local car dealer that allowed him to take the car now, but pay for it at the end of the raffle. This allowed the church to display the car with a sign “WIN THIS CAR” without having to pay for it up front.

Because it was for a charitable group, the dealership gave the church a good price, but the final cost was still going to be $22,000.That’s a lot of raffle tickets.

Even the pastor admits that he was nervous, but he thought it was worth a try. He thought that the worst case scenario would be that they would be break even. He never considered the possibility that they would wind up in the hole.

Ticket prices were set at $20 each. That is a lot of money for a ticket, but because the potential prize was so big and the cause was considered by many to be worthy, people were willing to pony up. The $20 price tag meant that the group would have to sell 1100 tickets to break even. Anything after that would be profit.

Since the congregation was on the small side with only 300 members, selling that many tickets would take some aggressive action on the part of the church members.

The period for which tickets would be sold was set at two months. During the first month, only 750 tickets were sold. While at the first part of the month, the tickets were selling at a pretty good pace, sales had slowed way down.

The pools of families, co-workers and neighbors of the congregation had been exhausted. Everyone was getting nervous. A new strategy was needed.

That is when someone came up with the idea that turned this fundraiser from a near disaster into a very successful event. They purchased tables at local car shows and flea markets and spent the final four Saturdays of the event selling tickets at places with very heavy foot traffic.

At one car show alone, 250 tickets were sold. Instead of visiting the same places each Saturday, they chose a different location each time. This was a good strategy because they were in front of a different crowd each Saturday, rather than seeing the same faces that had purchased tickets the week before.

When the day came for the drawing, they had sold a whopping 1974 tickets! The grand total of their profit, after paying for the car, spots at the flea markets and car shows and advertising was $15,580!

While the event ended up as a great success, the group also said that they would never do it again. The stakes were too high should the tickets not get sold, and it was a LOT of work and ended up being very hard on the congregation.

While this event has the potential to bring in some big money, it also carries some big risks and that should be carefully considered before your group decides to try such a fundraiser. It’s best suited for very large groups. If your group is small, try joining with other groups if you want to try this.

Whether raffling a car is the right fundraiser for your group or not, this story proves that with the right combination of creative thinking, hard work and persistence even fundraisers that appear to be tanking can be turned into a success story.

10 Tips on How to Donate a Car

2012-07-30T23:57:00.000-04:00

1) Make sure it’s a worthy charity. Do your research. Make sure they take such donations. Also make sure that as much of your donation goes towards the cause as possible. We like using Charity Navigator and the Better Business Bureau

2) Deal directly to the charity. Middlemen can keep as much as 50 to 90 percent of the car’s value. Many of these for-profit middlemen companies advertise aggressively on billboards, magazines and TV. They might have a cute kid singing a cute song about helping out their cause to lure you in. Some of these companies may be for-profit organizations. 3) Do the math. If you still feel compelled to use a middlemen for-profit charity, at least ask how much of the car’s value will go to the cause. If it is just a flat fee of $50, you might not be eligible for any tax deduction from the IRS. 4) Check the recipient’s status. Are they an IRS approved 501 (c) (3) charity? They need to be if your car or donation is to qualify for a tax deduction. Most churches do qualify. Type in publication 78 into the IRS home page to make sure and to find other qualifying charities that will take your car. 5) Drop the car off yourself. Here’s a top tip. Take the car in yourself if it is running or you can afford the tow charge. The charity has to pay for this towing, so you will be guaranteeing the max benefit to your chosen cause. 6) Do the transfer yourself. I see this all the time, you assume the transfer will be done properly and 6 months later you receive a parking ticket or other violation in the mail. Eliminate this risk by transferring the car yourself directly to the charity. Re-title the car and contact the DMV. 7) Don’t guess at your write off. A car or boat worth over $500 will need the proper paperwork of what the charity sold it for. ( Most charities take your car and immediately flip it for cash) Reputable charities will happily supply you with this information. 8) Fair market value. If the charity keeps the vehicle and uses it for its own charitable work or if your car or boat is worth less than $500 then you can use the Kelly Blue Book to report the amount of the deduction. 9) Keep all records. Get IRS form 8283 if your car is worth more than $500. If it’s worth more than $5,000 you must include an appraisal from a reputable company also as well as the receipt from the charity. 10) Rinse repeat. After completing one donation, keep all your details together so the next one will be easy. Remember, large tax deductions such as a car get scrutinized by the IRS so be very detailed oriented. Follow our 10 tips above and you will feel good about helping your worthy cause without dealing with any frustrations from the IRS.

Infographic About Car Donation

2012-07-27T23:58:00.000-04:00

Here's an interesting infographic about car donations with data collected presumably from the USA! There are some pretty weird facts in here, gender, age, cars donated etc.

Another Car Donation Video!

2012-07-09T23:22:00.000-04:00

Here's another donation video detailing the tax benefits of donating a car, be sure to check it out!

Does Charity Car Donation Still Make Sense Under Tougher IRS Rules? Part 2

2012-06-27T22:37:00.000-04:00

In contrast to charities whose actual mission doesn't involve cars, Charity Cars has seen a 50-percent increase in donations this year. Because owners of higher-value used cars are now turning to his organization, Menzies says, "The quality of the cars has been phenomenal." Cars that aren't roadworthy are auctioned off to pay for repairing the cars that go to struggling families.

Note that the fair market value, in this case, must be determined by the donor. The government warns that, "The fair market value of the taxpayer's car may be substantially different from the 'Blue Book' value." Lower, that is. Edmunds' TMV Used Vehicle Appraiser provides an accurate valuation report of what a used car sells for in your specific neighborhood. This can be used at tax time and in the event of an audit.

Doing the math So if you've got a car with a market value of $1,000 that you're looking to unload, you have four options.

1. Donate it to a standard charity that has 501(c)(3) tax-exempt status with the IRS. The letter you receive will state the amount it was sold for — far less than the market value. Say it's sold at auction for $250. There is a special rule that could apply if your car was sold for less than $500. If you get a written acknowledgement from the charity that meets the IRS requirements, you can claim a deduction of the fair market value or $500-whichever is less. We recommend you check out the IRS' donor information guide for more details.

2. Trade it in on a new car — never a great deal. Dealers are never excited to get people's old beater cars as trade-ins, although a late-model luxury or Japanese car might fetch a reasonable price. But dealers often use your trade-in to jiggle the terms of your new car purchase or lease, so you have to be pretty savvy not to get taken advantage of. (If you go this route, be sure to see Trading In Your Used Car first.) If you traded in that $1,000 car, you'd be lucky to get $700.

3. Donate it to an organization such as Charity Cars, which uses the car as part of its stated cause. This allows you to deduct the car using Edmunds.com's True Market Value^SM. Using the 33-percent tax bracket again, that means $1,000 x 33% = $330 in your pocket.

4. Sell it privately for around its full market value of $1,000. Though it's generally the harder road, this is what we recommend. The advent of Internet sites such as Autotrader and eBay Motors can make it much easier, though it depends if your car is in demand.

A word of caution: When it comes to tax deductions, there's more to it than your tax bracket. For example, you can't take advantage of a car donation at all unless you itemize your taxes. Other factors include your income, need for deductions, and the car's value. A certified accountant can help you decide if donating is in your best interest, or you can ask the IRS at (800) 829-1040.

So what did I do? Being the savvy Edmunds user, I knew I would be best served by selling it myself. Doing so was somewhat inconvenient and a bit strange. I literally became a "used car salesman" for a couple of weeks as I illustrated the car's features and benefits to total strangers.

In the end, though, I got $2,300 for the car, and I didn't have to worry about special IRS forms. I had sufficient money to reward my efforts and enough left over for the charity of my choice — far more than it would have received had I donated the car directly. Like so much else in life, the least convenient choice is often the most profitable.

Does Charity Car Donation Still Make Sense Under Tougher IRS Rules? Part 1

2012-06-24T22:36:00.000-04:00

When my aging Nissan Sentra began to need several hundred dollars' worth of repairs every few months, I considered donating the once trusty blue sedan to charity. I knew of several pet charities that would be grateful. Besides, donating a car seemed so much easier than selling it. No fixing it up. No phone calls. No Tom, Dick and Harriet knocking at my door — or standing me up on a Sunday morning as I waited for Godot.

The biggest incentive, though, came from the tax deduction. At the time, the IRS was allowing donors to deduct the "fair market value" of the donated car from their taxes. So donating the Nissan, whose market value was about $2,400, meant $792 off my taxes (assuming a 33-percent tax bracket). Every year, more than a million Americans donated their cars just like this.

Too good to be true Unfortunately, whether through ignorance, confusion or greed, a substantial percentage of car donors have been deducting the full "suggested retail price" — what a dealer would get for reselling your trade-in — instead of the fair market value. That's far more than the IRS had intended, costing the government millions in lost tax revenue.

The charities weren't making much, either. Most of the donated cars were sold by the charities for a pittance at auction, and middlemen who administered the programs on behalf of the charities took a large percentage of those meager profits.

So in 2005, the IRS changed the rule. From then on, if your car is valued at more than $500, the deduction is limited to the charity's actual selling price. The donor must attach a statement of sale to the tax return in order to receive the deduction. (The charity is obligated to provide the statement within 30 days.) You are not entitled to know the deduction amount before donating your car.

That leaves most donors in the dark — and may leave some businesses and charities in the red.

Good for government = bad for business? Taron Reeves owns America's Car Donation Charities Center, one of many commercial fundraisers that give a percentage of profits to their charity members. Donations through Reeves' company went down 30-35 percent after the new law went into effect. What's worse, his overall profits have dropped a full 50 percent, as owners of "higher-value cars" — anything more than $2,000-$3,000 — stayed away in droves.

Since the average car that Car Donations Charities Center now receives for charity is valued at only $250-$300, Reeves has had to cut back on his overhead and expenses to maintain his non-profit business. A native Texan, Reeves says he now has to work a little smarter and a little faster than he used to; nevertheless, he remains undaunted.

"There are lots of cars out there," he said. "I look at one that's sitting in someone's yard, waiting to be donated and say, 'That's a $50 bill just flapping in the wind right there.'

"As long as we can accommodate the donor and not lose money for the charity, we'll do it."

As one door closes, another opens Since the biggest loss for consumers is for those who own higher-value used cars, should they give up hope of donating? Not at all. Although the IRS has closed the loophole in the law, there is still a way to deduct full market value of your vehicle: If the charity uses the car itself to further its specific purpose.

For example, the nonprofit organization 1-800-Charity Cars refurbishes donated cars and provides them directly to the economically disadvantaged. Its goal is to help the needy and welfare-dependent to become stable, self-sufficient, tax-paying citizens.

"We've been going gangbusters," said CEO Brian Menzies. "We've given away cars for free to people in almost every state in the union, including Alaska and Hawaii."

eHow Car Donation in the USA Video

2012-06-21T12:46:00.000-04:00

Here's an interesting video the eHow put up on YouTube about Car Donation in the USA. Be sure to check it out!

Guide to Donating Your Car Part 3

2012-06-18T19:18:00.000-04:00

8. Complete Your Paperwork

If your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.
There are several exceptions which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:

instead of selling the vehicle, the charity keeps and uses it,

the charity makes improvements to the car before selling it,

your car is sold at a discounted price to a person with a low income,

or if the car is worth less than $500.

It is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.

9. Use Fair Market Value (FMV) for the Car

And remember to always get a receipt when you donate the car. Again, the IRS is watching this area very closely.

10. Take the Time to Get It Right

Guide to Donating Your Car Part 2

2012-06-16T19:18:00.001-04:00

4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to Charity

The IRS does not require the car donation agencies to contribute a set amount of the auto's proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don't want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.
While many organizations can claim non-profit status, donations to 501 (c) (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 (c) (3) public charity status.
Some charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they don't have to re-title the auto. If your charity asks this of you, find another charity. If you don't formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it's used in a crime. Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn't bother to register that car, it's still yours in the eyes of the law.

5. Make Sure Your Intended Organization is a 501 (c) (3)

6. Transfer the Car Correctly to the Charity

7. Value Your Car Correctly

Due to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Over the last few years, the agency stepped up their audits in this area and began to advocate for changes to the laws that govern such deductions. With the passage of the American Jobs Creation Act of 2004, those changes have come. Starting with your 2005 tax return, you will no longer be able to deduct the published fair market value of vehicles worth more than $500. Under the new rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction.

Guide to Donating Your Car Part 1

2012-06-14T19:18:00.000-04:00

In the past few years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2000, nearly ¾'s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.

As America's car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these 10 Charity Navigator Tips For Charitable Auto Donations, you can minimize that risk, and maximize the amount that actually gets to charity.

1. Find a Charity That Directly Accepts Car Donations

If at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car's value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It's possible that the charities you already support have a car-donation program that you don't know about. Check with them first.
Remember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.
Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization's programs. If you can get the car to them yourself, do it.

2. If Your Charity Doesn't Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You Respect

3. If It Runs, Drive the Car to the Charity

Helpful Link of the Week #10

2012-06-12T22:09:00.002-04:00

For our special 10th edition of "Helpful Link of the Week" we're putting out a very valuable source that you should really check out if you're looking for more information about donating your car.

Better Business Bureau - Car Donations

This first link is from the BBB and deals with everything about Car Donation. Make sure to check out this valuable source!

GHF

2012-06-10T19:21:00.001-04:00

Hey guys, go and check out Global Heritage Fund, they have a great program for donating your car!

The Tax Benefits of Donating a Car: Part 3

2012-06-04T22:36:00.002-04:00

Other donation rules still apply

Of course, the general tax laws regarding all charitable gifts still apply to automotive gifts.

First, the timing of your donation is critical. All charitable gifts must be made in the tax year for which you are filing the return. To claim a donated auto on your current tax return, you must have given the vehicle to a charity by Dec. 31 of the tax year for which it is claimed.

Be sure to check out the charity before dropping off your auto. Thousands of philanthropic groups accept gifts of vehicles. The important thing is to make sure that the one you select is a reputable and tax-qualified organization. Unfortunately, some con artists take advantage of people's good intentions and accept cars that never go to philanthropic causes.

Other groups may well do valuable community work, but they are not approved charitable organizations under IRS rules. Ask for copies of the group's federal tax-exempt status documents. You also can check out the IRS' website directory to see if the charity is on the approved list or peruse GuideStar's registry at GuideStar.org, which provides information on millions of U.S. nonprofit organizations. Finally, you can call the IRS at (800) 829-1040 and ask about the group's tax status.

Charitable gifts require itemization

Next, to write off your auto gift, you must itemize instead of claiming the standard deduction. That means you have to keep track of what you give and file the long Form 1040 and Schedule A on which you list itemized deductions.

If your old car is the only deduction you can claim on Schedule A, giving it to a charity may not be worth it from a tax standpoint. But if your itemized expenses are close to your standard deduction amount, adding the value of a donated car could be just what you need to make itemizing the right tax choice this year.

Also keep in mind that as a tax deduction, the value of your car does not directly cut your tax bill. Deductions are used to reduce your taxable income, which usually does mean you'll owe less taxes. But a deduction's actual worth depends on your tax bracket. That means a donation of a $300 auto translates to a tax cut of only $75 for a filer in the 25 percent tax range.

So if you would rather have the cash instead of a comparatively small tax break, sell your old auto. If, on the other hand, you're feeling generous -- or don't want to spend what it would take to get the clunker in sellable shape -- giving it to a charity might be the better route.

Helpful Link of the Week #9

2012-06-04T22:30:00.002-04:00

This week's link is from KOA Camps. They can take a car off your hands, as well as boats, RVs, trucks, and even busses, for no charge (you even make a profit from the tax break) anywhere in the US!

KOA - Donate your Vehicle

The Tax Benefits of Donating a Car: Part 2

2012-06-01T22:36:00.000-04:00

Intervening-use exception

The vehicle donation law, however, does provide a few exceptions that will allow a giver to claim the auto's fair market value.

Say you donated your $1,000 station wagon to a food bank. Instead of immediately selling it, the group used the auto for several months to deliver meals and other food items to needy families. Eventually, the organization decided to sell the vehicle for $800. In this case, you could still claim the full $1,000 fair market value of the auto as long as you received documentation from the food bank on not only the sales price, but also how the auto was used for nonprofit works before the sale. Under the IRS regulations, this is classified as "significant intervening use" of the vehicle that allows the taxpayer to claim the higher deduction.

Other examples of IRS-accepted intervening use are a donated auto used by a charity to transport clients to doctor appointments or a car given to a vocational school that used it in its automotive repair classes.

The IRS says a donor also can claim a fair market value deduction if the charity makes a material improvement to the vehicle. This, according to the tax agency, means major repairs that significantly increase the auto's value. Material improvements do not include finish work (such as painting, waxing or rust proofing), dent or scratch removal, installation of theft-deterrent devices, or the cleaning or repair of upholstery.

Break for bargain-basement sales

What if the charity immediately sells your donated station wagon, but for a mere $300?

Scharin says don't shortchange yourself. Under the new auto-donation rules, you might be able to claim a $500 deduction even though the charity sold your auto for $200 less.

The IRS says this larger deduction allowance is OK in cases where a charity sells a donated vehicle at a price significantly below market value, or even gives it away to a needy person, as long as it's done to further the charity's mission of helping a poor person who needs transportation.

Be careful here. Make sure the vehicle did indeed go to a needy individual. Shortly after the vehicle donation rules changed, the IRS discovered that some charities sold autos at auction but reported that the sales -- at prices well below market value -- were to disadvantaged buyers, to trigger the exception that allows the donor a higher deduction amount. If the IRS discovers such false reporting, it could totally disallow your donation and deduction.

Also keep in mind that regardless of how a charity disposes of your donated vehicle, your deduction cannot exceed the value of your donation. So if you donate a clunker worth $150, says Scharin, that is the amount you can deduct even if the charity gives the auto away.

Helpful Link of the Week #8

2012-05-31T22:28:00.000-04:00

This week's link is from Wikihow, and deals with donating your car to the Salvation Army, a worthy and noble cause that is worth it if you're looking for how to get rid of that old car sitting in your driveway.

Wikihow - How to Donate your Car to the Salvation Army

10 Tips on Donating Your Vehicle to Charity

2012-05-29T22:32:00.000-04:00

1. Avoid middlemen. Numerous for-profit intermediary organizations advertise aggressively on TV, billboards and elsewhere, offering to help you donate your vehicle to charity. Here’s the catch: These organizations typically keep about 50 percent to 90 percent of the vehicle’s value for themselves, and the charities don’t get what they could have gotten. To prevent this, check directly with charities you admire and find out whether they accept car or boat donations.

2. Find a worthy charity. If the charities you normally support aren’t equipped to accept such donations, do some homework until you find a reputable charity that is. You can research charities’ track records online at this Better Business Bureau site and through Charity Navigator.

3. Check the math. If you still feel compelled to use an intermediary organization – possibly because you’re busy – at least ask the organization how much of the car or boat’s value will go to charity. If the organization simply gives charities flat fees — say, $100 for a used vehicle regardless of its value, or $2,000 a month — your donation may not be eligible for a tax deduction.

4. Know the status of your recipient. In order for you to qualify for a deduction, the charity that gets your donation must be an IRS-approved 501(c)(3) organization. Your church, synagogue, mosque or temple likely qualifies. (Check first just to make sure.) You also can visit the Internal Revenue Service’s Web site and search for Publication 78 to find other qualifying non-profit organizations. (Just type “78” into the search field on the IRS home page and you’ll be directed to the right publication.)

5. Do the delivery yourself. Once you’ve identified a worthy charity, recognize that it will have to pay someone to pick up your car or boat for you. To help the charity maximize the benefit of your donation, drop the car or boat off yourself.

6. Transfer the vehicle with care. Want to eliminate all risk of running up parking tickets and other violations after you’ve said goodbye to your donated vehicle? Then formally re-title the vehicle to the charity, and report the transfer to your state’s department of motor vehicles or licensing. Never agree to leave the ownership space on the charity donation papers blank.

7. Your estimate of the donation’s value probably won’t cut it. If your car or boat is worth more than $500, the IRS is going to want to see evidence of how much the charity got for it. (Most charities that accept these donations turn around and sell them for cash.) You’ll need to get a receipt from the charity revealing exactly how much money it made.

8. Know when you can report the fair market value. You won’t need evidence of the sales price if the charity keeps the vehicle or vessel and uses it in its charitable work, or if your donation is worth less than $500. Then you can report its fair market value based on listings from Kelley Blue Book and similar sources.

9. Keep a thorough paper trail. If your donation is worth more than $500, you’ll have to attach IRS Form 8283 to your tax return. If it’s worth more than $5,000, your documentation must include an outside appraisal. You’ll also need proof of the donation, such as a receipt from the charity and a copy of the title change.

10. Be detail-oriented. This paper trail may seem cumbersome, but think about it: This may be one of the biggest charitable donations you ever make. By taking the time to dot the i’s, you can make sure that the charity gets the most benefit and you get the biggest possible deduction.

Helpful Link of the Week #7

2012-05-22T19:56:00.004-04:00

This week's link comes from an indispensable source: Lifetips! It covers almost everything about car donation, so go pay Lifetips a visit!

Lifetips - Car Donation

Helpful Link of the Week #6

2012-05-15T19:54:00.000-04:00

This week's link is probably the first thing you'd think of when trying to find information about car donation, Wikipedia. Nonetheless, Wikipedia has valuable information that can be extremely useful, so read up!

Wikipedia - Car Donation

Helpful Link(s) of the Week #5

2012-05-08T16:03:00.001-04:00

This week's helpful links are all about appraising the value of the car you want to donate. SO without further ado, here are the links:

Kelley Blue Book

The NADA Guides

Edmunds Guide

Should You Sell or Donate Your Car?

2012-05-01T21:26:00.000-04:00

A common dilemma that our donors face is the decision to sell or to donate their car car. In this article we will consider both ideas.

There are a lot of reasons to consider donation. Many are looking for a way to use their vehicle to support their favorite cause, and we are here to help with that. Children go away to college, and elders stop driving. Car owners upgrade to new vehicles, which means they have no more use for the old car, even though it may still be in perfectly serviceable condition. When dealing with an extra car that still holds some value, there are options to consider with sale or a car donation.

We recognize the fact that your family car is a huge initial investment, and as time passes, repairs and maintenance costs continue to increase that investment. As the vehicle ages and depreciates in value, the chances of a need for mechanical repairs increase exponentially. Many vehicle owners come to that “last straw” breaking point when one more thing (even a minor repair) will push them to decide that they just don’t want to invest anymore.

For some, the family car becomes an emotional attachment, sort of like a family pet. We hear from donors constantly how, “Junior learned to drive in this car.”; or, “Mom drove all the kids to soccer in the minivan.” It is difficult for them to think of anyone but them driving their Baby. They want to know it will be used in a meaningful way, and hope that someone can get some use out of it. This happens when the car can be reconditioned and put back on the road.

We understand what an important decision this is and offer you some thoughts to consider. While the best of all scenarios is for the car owner to sell their car privately and donate the entire amount to charity; this is not always practical. Cars often need mechanical work, and laws in some states require a valid Smog Certificate to be provided by the seller. This is not an option for those car owners who have decided not to invest anymore time or money into the vehicle.

Donors are often under time constraints to get their vehicles moved due to space considerations, and registration deadlines. Some dislike having strangers come to their home, or having to take test drives with them. Others state the inconvenience of scheduling for prospective buyers and the worry of haggling over price as reasons why they will not attempt a sale. Often they are not offered what they feel is the value of the vehicle as a trade-in (especially on older cars). Also, what can you do if the buyer is unhappy with the car and brings it back? You may be obligated to pay for repairs to bring the car into compliance for smog certification; or, in the worst case take the car back and refund the buyer their money.

Whether you own a car, truck, boat or recreational vehicle, you must decide for yourself;

Helpful Link of the Week #4

2012-04-29T13:01:00.000-04:00

The nice thing about Donate Car USA is that there’s nothing left to the imagination; the name says it all.

What it doesn’t say, and you might not know, is that Donate Car USA supports more than 400 different charities; that’s right, more than 400. Charities that offer a helping hand and support to all varieties of people and organizations in need. And they do it with your help, and only with your help.

On the other hand, they also provide a valuable service to you, if you stop to think about it. That junky car, used and unnecessary now, just taking up space in your garage or driveway (or worse, maybe even your yard), is definitely not doing you any favors, and certainly no good, just lying around the house, its best years behind it.

What better way to get rid of something just taking up space, and at the same time doing something good, something that can make a difference?

It’s so easy, too. Donate Car USA does all the work; all you have to do is make the pledge they will handle the rest. Donate Car USA takes your information and handles all the processing, from transferring the title to arranging to have your vehicle picked up, delivered and auctioned off, with the proceeds going toward charity.

Inside the Auto Auction: Part 1

2012-04-23T16:26:00.006-04:00

One of the ways that charities process donated vehicles is by selling them to licensed dealers at wholesale auctions across the country. The proceeds from each vehicle sale are forwarded to the donor’s charity of choice. The donor then gets the ability to deduct the sale price of the vehicle from their taxes.

These vehicles are not just donated cars. Actually, the majority of vehicles processed through the auction house are former lease cars, former utility cars, bank repossessions, recreational vehicles, dealer sales, and insurance loss cars. The insurance loss vehicles, for example, consist of cars that were involved in some sort of accident, and that the owners chose to relinquish rather than repair. The insurance company then sells the vehicle to licensed dealers, who in turn either fix them for resale or part them out.

The auction house does not ever technically own these vehicles. They are merely facilitating the sale of them. But they do so by attracting a wide range of buyers that come to buy the vehicles in their huge auction garage. The auction house makes a profit by charging fees for buying and selling the vehicles.

Inside the Auto Auction: Part 2

2012-04-23T16:26:00.005-04:00

All of the vehicles are stored outdoors in a massive lot. They are all inventoried and numbered. Chalk marks on the windshield denote the stock number and mileage.

The auction itself takes place in a massive indoor garage with multiple “lanes” lettered in alphabetical order. There are garage doors at each end of the vehicle lanes for the vehicles to drive through. Inside, each lane is devoted to several categories of vehicles. One or more Ocean State employees are assigned to oversee each lane.

Before the sale, attendants prep the vehicles and line them up to the garage door in their respective lanes. Typically a preparation will consist of washing and detailing the vehicle, charging the battery or other quick minor adjustments to get the vehicles ready to go.