". . .when I heard that I could find a home for my old car and do some good at the same time, it seemed perfect. The process was quite efficient. I did it all online - it was a snap. The whole donation was done on my schedule and my charity recieved over $900 in donation proceeds. . ."
Thank you for coming to find out more about a V-DAC Vehicle Donation Program, an easy, effective way to Supplement you fund-raising income.
A good place to get an overview of our program is to view the How it Works chart. In summary, here is how the V-DAC program works.
How it Works – With tools and counsel provided by V-DAC, the Non-Profit registers with V-DAC and then informs its supporters of the Program. Then, either through the on-line Wizard or using the 800-number, donors donate their vehicles to a Central Charity, designating the Non-Profit they chose as the beneficiary of their donation. A vehicle remarketing company collects the required information and documents and then supervises the pick-up, sale and title transfer of the vehicle and provides tax forms to the donors. It subtracts its costs and delivers the Net Proceeds to the Central Charity. The Central Charity receives a funds handling fee, pays a management fee to V-DAC and then disburses the remainder to the Non-Profit, along with an accounting of the donor, sale, costs and donation details. The Central Charity reports the costs of converting the car into cash as its own “fund raising costs”. V-DAC handles all supporter questions, tax issues and non-profit assistance.
Turn-Key Program: V-DAC does all the work
Simply by registering, a non-profit obtains the full resources and benefits of the V-DAC Program which currently services over 2500 non-profits nationwide. In this Program the vehicles are, uniquely, donated to a Central Charity, for the benefit of your non-profit. The contracts and mechanics by which the Program works are already operational and proven.
By registering, a Non-profit is instantly provided with its own Vehicle donation Web Page, where supporters need only click on an Icon (or call the 800#) to begin and complete the donation process. V-DAC manages the pick-up, sale, title and accounting so that the fully disclosed net proceeds are sent to the non-profit and all tax info, is sent to the donor.
No Costs to Non-Profit or Donors
There are no costs to the donor or to the non-profit. The costs of towing, title transfer, processing and management of the vehicle donation program are paid for from the proceeds of the vehicle sale. In the event the sale proceeds do not cover all costs, V-DAC covers any shortfalls. Non profits pay no fees or any money to join or use the V-DAC program.
Proven High Returns
V-DAC Programs use a nationwide vehicle disposition company with the lowest costs and access to the largest possible array of used vehicle markets (from on-line auto auctions to local dismantlers, depending on the vehicle’s age, make and condition). It chooses the market and manages the sale, all to maximize the sales price received. V-DAC deducts the actual billed costs for tow and for auction/sale and a small fee for managing the call center, title work, insurance and operations. It then sends the net proceeds to our “Central Charity” and the 1098-C IRS tax form to the donor. The Non Profit is guaranteed a minimum of 70% of the net proceeds of vehicle sales and receives even more on higher value vehicles. Our long term average return is 79% of net vehicle proceeds.
Safety: No Liability because of unique Central Charity structure
Other programs require contracts from each individual charity, imposing responsibilities and risks. V-DAC requires no contract. Use the program voluntarily as long as you are satisfied and it is helping you raise money.
Under the unique V-DAC structure, the vehicle is actually donated to a Central Charity – “to the benefit of the non-profit”. This is how you avoid any line-of-title liability. Our central charity is Independent Charities of America (“ICA”). It is a 501(c)(3), registered in every state. It serves the largest federation of non-profits in the country, and it runs the “Federal Campaign” on behalf of the United States Government.
Additionally, V-DAC maintains a $2,000,000 liability and indemnity policy to protect donors and non-profits.
No Fund Raising Costs (incurred and reported by the Central Charity)
All of the expenses of converting the car into cash are incurred under the Central Charity’s ownership and reported to all authorities by it. Having already been paid, your non-profit receives your check 100% free of any Fund Raising Costs.
Takes Any vehicle, Anywhere, running or not
We accept cars, trucks, motorcycles, RV’s, boats, airplanes, heavy equipment, farm machinery, etc. Our Vehicle Disposition Company is Advanced Remarketing Services (“ARS”). On our behalf, it collects vehicle and pick-up information, tows and sells the vehicle. ARS has contracts with over 3500 tow companies, auctions and recyclers, nationwide, and we have only turned down a handful of cars in the last 5 to 6 years. It provides us the same service it offers to the largest auto insurers, leasing and car rental companies and at the same competitive prices. If donors have a unique item, they are urged to call our toll free number, listed on your Program Page, for assistance.
V-DAC handles all supporter assistance and tax reporting
The “Donor Service” phone number and email address is prominent on your Program Page. We have a full time service center that does nothing but handle all donor questions about pick-up appointments, the status of vehicles, sales details, common questions donors have. We respond directly to donors who send us emails. V-DAC provides donors with all necessary tax forms and information. There are no tax filings required of the non-profit.
Instant on-line Registration; no contract
V-DAC does not require a contract from any non-profit. Once you register, you can begin using the program immediately. You will get instructions on how to put a Vehicle Donation Icon on your web page and you will also get access to our exclusive marketing materials that will help you tell your supporters about the program.
How to have a Successful Program: Set-up, Launch, Sustain; Marketing support and resources
a. Set-Up: V-DAC provides you with online access to detailed instructions and direct assistance for getting the Program Icon on your own web site or on your “Donate/Support” page, so that supporters can easily find the Program and follow its easy instructions.
b. Launch: The critical action is to make all of your supporters aware that, when they are ready to donate a vehicle, you want it! Most supporters do not have a car, NOW, to donate so the purpose of the Launch is to get and then stay “Top-of-Mind”. V-DAC provides detailed instructions and marketing materials to help you get the word out.
c. Sustain: V-DAC provide you with an overall strategy and the Marketing Support and Resources for all of the media that you use (newsletters, mailers, customizable ad slicks, radio spots, back-pack mail, email blasts, etc.) to stay top-of-mind with your supporters.
Costs of the Program
There is no cost to the non-profit or to the donor. Each vehicle is individually assessed based on its age, mileage, make, etc and sent by ARS to the marketplace where it can obtain the highest wholesale price. The costs of turning the vehicle into cash and of running the Program are deducted from that gross sales price. The actual costs of towing and auctioning the vehicle plus a fee ($50) for title transfer, call center and administration is paid to ARS, the vehicle disposition company. This leaves the Net Proceeds of the sale. The Central Charity receives a fee for funds handling services. From the Net Proceeds, the Non-Profit then receives a minimum of 70% of the Net Proceeds and as much as 80% if the vehicle sells for more than $500. V-DAC then receives a management fee of 20%-30% of the Net Proceeds.
Our costs are fairly fixed and so the higher the value of the vehicle the higher the percentage that ends up going to the non-profit. Historically over the last three years, non-profits have received approximately 78% of the net proceeds from vehicle sales.
If there are ever any negatives, where the costs exceed the price, V-DAC eats those negatives.
The V-DAC program controls costs and tries to return as much of the gross proceeds as possible to designated charities. Our program delivered an average of 61% of gross proceeds in 2007. Some large advertised programs return as little as 5% to charities. The Attorney General of California, in their 2005 report, stated that charities received an average of only 49% of gross proceeds from all of the states vehicle donation programs.
High value vehicles can be picked up within a day of donation, if requested and the vehicle qualifies for our Instant Tow Program. Other vehicles are usually picked up within one week of the time that title paperwork is received.
It usually takes between 45 - 60 days from the time the vehicle is picked-up until the vehicle transaction is completed. Net cash proceeds are delivered to the non-profit within two weeks of the transaction completion. The agents at our call center keep track of the timing and status of the vehicle in the sales process and are available to give status updates.
Full, Detailed Reports of sales, costs, donor info
V-DAC provides to its non-profits detailed reports of each donation and a full accounting of each sale, its costs, fees and net distribution. It also provides full donor information so that charities can thank their supporters. Non-profits receive a access to a secure web reporting system so that they can track all of their donation information on-line.
Donors are entitled to receive a Tax Deduction equal to the sales price of the vehicle, if they itemize their deductions. If the vehicle sold for less than $500, donors can deduct the “fair market value” up to $500. They will receive a tax receipt or IRS Form 1098C stating what the vehicle sold for within 30 days of its sale.
The “fair market value” of a vehicle is the price that a donor could sell it for in its current condition to another individual, willing seller and willing buyer, and it represents the cash that a donor gives up to make the donation. A convenient source of this information is the private party sale value as shown in online valuation guides such as Kelley Blue Book (http://www.kbb.com/kbb/UsedCars/default.aspx).
ICA, as the actual recipient of the donation, must file Form 1098C with the IRS for all vehicle donations, including donor’s Social Security number and vehicle’s Vehicle Identification Number (VIN. There are no tax filings required of the non-profit.
V-DAC gives no tax advice. It is solely the donor’s responsibility to report vehicle value and tax status. For more information from the IRS about tax deduction for vehicle donation, go to: http://www.irs.gov/pub/irs-pdf/p4303.pdf
“V-DAC” stands for Vehicle Donation to Any Charity. It is Fundraising Counsel, registered with the Attorney General of the State of California. V-DAC is not a Commercial Fund Raiser and does not solicit donation, itself, but provides non-profits with the Program and tools with which to solicit their supporters. Since its origins, creating the vehicle donation program of J D Power and Associates CarClub, V-DAC has provided single and multi-chapter non-profits with a complete and low cost national method to raise funds through vehicle donation.