Charitable Auto Donations Run Down...

Charitable auto donations and their fundraisers are subject to state law requirements relating to titling of vehicles and transfers of title. Generally, state charity officials ask the donor to transfer the car title to the charity’s name and make a copy of the title transfer, when possible. In some states, however, there are exceptions to this titling process, and an agent can hold an open title or insert a dealer’s name. The donor should remove the license plates, unless state law requires otherwise.

Charitable auto donations will help avoid liability problems after the car is transferred. Before starting a car donation program, check out your state requirements. All of them that solicit contributions are often required to register with state officials, such as the state attorney general or the secretary of state. Some state charity officials provide information about paid fundraisers. The charitable auto donations hire a private, for-profit entity as an agent to operate its car donation program. The charitable auto donations and the for-profit entity must establish an agency relationship that is valid under the applicable state law.

Generally, an agency relationship will be established where the parties agree that the for-profit entity will act on the charity’s behalf and that the for-profit entity’s activities covered by the agreement are subject to the charity’s oversight. Accordingly, the charitable auto donations should actively monitor program operations and have the right to review all contracts, establish rules of conduct, choose or change program operators, approve of or change all advertising, and examine the program’s books and records. If the charitable auto donations follow these guidelines, the program should not have an adverse impact on the charity’s tax exempt status. Because the for-profit entity is an agent of the charitable auto donations, donors may deduct their contributions (if all other requirements are met).

Unfortunately, whether through ignorance, confusion or greed, a substantial percentage of charitable auto donations 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 charitable auto donations had intended, costing the government millions in lost tax revenue. The charitable auto donations weren't making much, either. Most of the donated cars were sold by the charitable auto donations centers for a pittance at auction, and middlemen who administered the programs on behalf of the charitable auto donations took a large percentage of those meager profits. Your benefits are: assisting in funding your favorite charitable auto donations valuable programs, you could get a tax write-off should you choose to include your vehicle donation on your itemized tax return, selling a car or recreational vehicle yourself can be a real hassle, they make it easy for you: once your vehicle is accepted, they take care of everything at no charge to you or the charity, they make it easy for the charity: we take care of everything so that they can focus their much needed resources on their cause.

Charitable auto donations are great; they let you do something to give something back to society and help out those that are less fortunate. Well donating a car is so much easier than selling it, you don’t have to repair it, you don’t have to make any phone calls, you don’t have to pay for advertising, and you don’t have to see people who might be interested in buying your car. You don’t have to advertise it and put up with lots of low ball offers which can and will drive you crazy and make you to waste time. So, if you have an old car, think at charitable auto donations, it’s easier and cheaper!

Charity Donations Legal Disclaimer