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Is my vehicle
donation tax-deductible? Your donation
is a charitable contribution that can be deducted from your taxes
if you itemize deductions. You are entitled to deduct the vehicle's
"Fair Market Value." The IRS definition of this term can be found
in IRS
Publication 526, and is generally referred to as "the price
a willing buyer would pay to a willing seller." (see page 6; "Contributions
of Property" and page 12; "Records to Keep"). The school, church,
or group that is the recipient of your donation must be a non-profit
entity. Click here
for a tax information worksheet to help you calculate your tax benefit.
Since each case is different, consult your
tax advisor. We give no tax advice. |
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How is the "Fair Market Value" determined?
You may look in the newspaper and copy classified ads for similar vehicles. We provide online
access to the Retail section of
Kelley Blue Book where
you describe your vehicle and enter its condition and mileage to receive their estimate of its value. [Print out that page.]
You may take a photo of your vehicle and retain copies of all these records in your tax file in case the IRS questions any
value that you claim and deduct. The donor is solely responsible for setting the retail value declared in any tax filings.
If the value declared is greater than $5000, the donor must obtain an independent, written appraisal. You can check the
telephone book or ask a local auto dealer about who does appraisals in your area.
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How much will the non-profit receive from my vehicle donation?
The non-profit will receive about the same amount a car dealer would clear if he accepted the car
as a trade-in, prepared and auctioned the vehicle (including dealer overhead). The amount a non-profit receives varies with
the age, condition and type of vehicle. Some vehicles cost more to pick up and process than they bring in at auction and so
the non-profit receives nothing. If your non-profit is donated a number of vehicles, they should receive between 45% and 60%
of gross auction/sale proceeds.
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What are the costs of the program? How much money goes to the non-profit?
There are no costs to you or to your non-profit. The Program costs are detailed on this site
(See Costs). These costs are subtracted from the price received from the highest bidder at the auto auction. The net
proceeds are then delivered directly to non-profit you designated.
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How does the V-DAC program compare to other donation services?
The V-DAC program controls costs and tries to return as much of the gross proceeds as possible to
designated non-profits. While V-DAC delivers 45% to 60% of gross proceeds, some large advertised programs return as little
as 5% to non-profits. The Attorney General of California reported that charities received only 19% of gross proceeds from
reported vehicle donation programs in 1997. |
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Is it possible that my designated charity will receive no money?
If your vehicle brings in less than the cost of selling it, the non-profit will get nothing.
The non-profit receives net proceeds after costs of processing, picking up, preparing and auctioning your vehicle are
deducted. You can get an idea of whether your non-profit will get a little or a lot from your donation by asking yourself:
"Would a retail buyer purchase my vehicle in the shape its in?" The type of damage your car has is also important in
determining what a used car dealer or salvage operator will pay for it at auction. For example, a vehicle that has small
dents on every body panel and a poor interior will not bring in as much as a vehicle that has a smashed front but is perfect
in all other areas. You can check on how much your vehicle brought at auction by calling our 800 number with your vehicle
information. |
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When I donate my vehicle, is there a towing cost?
There is no cost to you (or the non-profit) for towing or anything else. You will be contacted to
establish a mutually agreed upon time for pick-up. |
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How should I prepare my vehicle for pick-up when I donate it?
Be sure to remove all of your personal items from the vehicle. You may receive further instructions
from our representative when arrangements for the pick-up are made. |
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Must a vehicle be operational when I donate it?
No. Vehicles do not have to be in running order to be accepted for donation. However, they must
be whole, and they must have some actual wholesale auction value. While you may qualify for the Tax Write-off and it clears
the driveway, it is unlikely that vehicles that are not running or Pre-1990 Domestic vehicles will produce any cash for your
charity. These vehicles are often sold directly to dismantlers, and the cost of converting the car to cash will exceed
income and, as a result, the non-profit will receive nothing.
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Is a title required when I donate a vehicle?
A free and clear title is usually required, but not always. This is determined by the age of the
vehicle and the state in which it is registered. We're happy to help you with this part of the donation process; just use
the online Donation Wizard to find out if your state requires title paperwork for vehicle donations. If you need help,
please call
1-877-372-7471.
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What if I have lost my title for the vehicle I want to donate?
A free and clear title is usually, but not always, required. Use the online Donation Wizard to
find out if your state requires title paperwork for your vehicle. If you need help, please call
1-877-372-7471. |
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Will you pick up a vehicle anywhere in the United States?
Yes, service is available in all 50 states. |
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What types of vehicles are accepted?
The V-DAC Program accepts all vehicles. We handle cars, trucks, RV's, sports utilities,
motor homes, airplanes, farm equipment, construction equipment, etc.
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