The drop in vehicle donations is dramatic, but could have been predicted, says Rich Cowles, executive director of the Charities Review Council. "We're hoping to close that gap, but revenues are down 25 percent from what they were last year." "For the remainder of this fiscal year, we're not expecting to get back to where we were last year," says Becker. Goodwill spokesman Brian Becker says he's not optimistic about a turnaround anytime soon. Goodwill used to receive so many cars that it ran two auctions a week. Vehicle donations to Goodwill/Easter Seals are down, too. That could mean less money for Courage Center's theraputic, educational and other services. And it could be as high as a $1 million deficit to our operating budget," Adams says. "If the trend continues, we're looking at a huge deficit for 2006. But Adams says the change in the tax law has led to a sharp drop in vehicle donations - they're down nearly 50 percent from this time last year. The sale of donated vehicles has helped generate more than $2 million a year for Courage Center programs. The program is one of the largest car donation programs in Minnesota. "It's a critical source of revenue for Courage Center," says Rose Adams, director of the Courage Center's Cars for Courage program. And that means fewer dollars for the charities that run vehicle donation programs. In December 2004, before the new tax law went into effect, there was a rush on vehicle donations. That means that same 10-year-old car might only garner a $350 deduction. So you could have donated a 10-year-old car and claimed $3,500 on your return.īut now, you can deduct only what the charity receives for the sale of your car - no matter what you think the vehicle's worth. And charities say there's been a sharp drop in the number of cars being donated.īefore this year, if you donated a car to a nonprofit agency, you determined its fair market value, and that was the figure that you deducted on your tax return. The change means people who donate cars don't get as big of a tax break as they used to. Back in January the federal government changed the tax law that covers car donations. Car donations have generated millions of dollars for nonprofit organizations. (MPR Photo/Toni Randolph)įor years, charities have been collecting cars and reselling them to make money. Before vehicle donations dropped, auctions were held twice a week. Special arrangements can be made by calling our representative.Goodwill/Easter Seals holds an auto auction once a week. How much of the profit from the donated car goes to SCPR?Ī total of 70 percent of the revenue generated from the sale of vehicles brought to auction, excluding transport fees comes back to the station.ĭo I have to be with the vehicle at the time of pick-up? Call our representative to find out what times are available in your neighborhood. Vehicles are picked up at a time that is convenient for you. Funds from vehicle donations help SCPR acquire and produce quality news, educational and entertainment programs and support our outreach efforts in the community. The proceeds are used to support Southern California Public Radio. The vehicles are sold at a private auction. The value you may claim will be the amount of gross proceeds received from your vehicle. You are no longer required to have vehicles appraised. You will be sent a tax receipt with this amount when the vehicle sells.Īccording to the tax law effective January 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is limited to the gross proceeds of the sale. This will be your receipt for your charitable contribution.ĭonors can claim the amount for which the vehicle sold as a deduction on their itemized tax return. The tow receipt will indicate your name, the year, make, model and the condition of the vehicle you are donating.Ī tax receipt with our Federal ID number will be mailed to you within 30 days of the sale stating the amount of gross proceeds received from your vehicle. Yes, our driver will issue a tow receipt at the time of pick-up. You will need to get a duplicate title and call us when you have received it. Just sign the title! (Please note: a clear title indicates the title is in the name of the donor without a lien.) Call our customer service representative to find out if your vehicle qualifies. Cars that are in extremely poor condition or far from our tow range may be declined, as the cost to tow them may be more than the value of the vehicle. No, the car must have an engine and be towable. Does my car or truck have to be running to qualify for donation?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |