For virtually any non-profit, the actual
vehicle donated to it is not useful, because of the difficulty of
selling it. Our vehicle donation program converts that vehicle,
in the quickest and most efficient manner, into cash that the non-profit
can readily use.
V-DAC is a totally free
service for donors and non-profits.
All pickup, transportation, sales and administration costs are
covered by the revenue from each vehicle. The non-profits get
only checks for net revenue- never bills. Any shortfalls in vehicle
revenue are covered by the program and never charged to the non-profit.
V-DAC service does not include appraisals or cover any expenses
donors may have in preparing vehicles or paperwork.. V-DAC is
forbidden by law from making or paying for appraisals of donated
vehicles.
V-DAC delivers much more
of gross revenue to charities than do most other vehicle donation
services. In 2003, V-DAC delivered 59% of gross revenue from vehicle donations to nonprofits. The latest Attorney
General of California report showed that the average program yielded
only 42% of gross proceeds to local charities.
The V-DAC program fully
indemnifies non-profits.V-DAC
maintains a $2,000,000 liability insurance policy.
V-DAC keeps costs to a minimum by duplicating the program
used by the largest charities. The vehicles are picked up,
sold at auto auctions at wholesale prices and the title is transferred.
All of this is accomplished by the company that provides this
same service for 14 of the country's 20 largest insurance companies,
using the same costs structure. The costs of the program are
deducted from the auction price and the net proceeds are sent
to the non-profit.
Program costs
Below is a listing of activities common to many Vehicle Donation
programs and V-DAC corresponding actual charges for 2005:
Activities
Standard Fee
Per Vehicle
Average Per Vehicle
Transportation and auction costs
Actual
$66
Repairs
Actual
$0
Vehicle Processing
$55
$55
Central Charity Funds Handling Fee
7.5% of sales price less above expenses
$26
Program Administration and Operating Costs
Greater of $75 or 10% of Gross Sales.
$47
Negatives
Absorbed by
V-DAC
$0
Charities received an average of $274
per vehicle or 59% of gross proceeds under the V-DAC program in 2006. The following are actual
examples of proceeds generated with different value vehicles.
Net Revenue per Vehicle
Examples:*
Junker
Poor
Vehicle
Better
Vehicle
Premium
Vehicle
Gross Sales Price
$65
$568
$1,075
$2,700
Less: Transportation, auction, Processing, and Repair costs
$55
$150
$170
$176
Net Revenue
$10
$418
$905
$2,524
Less: Central Charity Funds Handling and Reporting Costs
$1
$31
$68
$189
Less: Program Administration and Operating
Costs
$9
$75
$107
$270
Net Revenue to Charity
$0
$312
$730
$2,064
% of Gross Sales to Charity
0%
55%
68%
76%
% of Net Revenue to Charity
0%
75%
81%
82%
*
These examples are all positive but some vehicles do not bring in enough to cover the cost of transportation, auction and processing. V-DAC absorbs
any losses. There is NO cost or pass-through to the non-profit.
Timing
Vehicles are usually picked up within
one week of when paperwork is received. (Call if you need quicker
pickup.) It usually takes over 2 months from the time the vehicle
is picked-up until any net cash proceeds are delivered to the
non-profit. The agents at our call center (877-999-8322) keep
track of the timing and status of the vehicle in the disposition
process.
