The benefit of a donated car, to the charity receiving it, can vary considerably from one charity to another.  In some cases, the full value of the donation goes to the charity, if the charity sells the car itself or uses the vehicle to fulfill a program need.  (Caring Cars always receives the full value, because we provide the donated cars directly to less fortunate families as part of our job transportation program.)

However, if a third-party broker is involved, other charities may receive only a small percentage of the resale price of the car (typically less than 20%) or only a portion of what is left after all expenses have been paid by the broker, which can result in even smaller amounts going to the charitable cause.

The IRS is targeting such brokers, their client charities and even the innocent vehicle donors to "suspect vehicle donation" programs with an arsenal of new tax laws.  The IRS position with regard to vehicle donation programs is clear; they consider any plan or program to be "suspect", whenever a charity contracts with a for-profit entrepreneur to run such a donation program for them.   It is recommended that people avoid donating money or material goods to a charity that has contracted with a for-profit entrepreneur/broker to manage their fundraising program. (Caring Cars never uses brokers.)

In some situations, the amount that other charities receive from a third-party broker has no relationship to the resale price of the used car.  The charities may receive a flat fee (such as $100 per used vehicle) or a monthly agreed upon amount (such as $2,000 per month) that is not dependent on the total dollar value of sales done by the used car fund raising company.  

Cars donated to Caring Cars stay on the road right here in north Alabama helping less fortunate families get to work.  On occasion, a donated vehicle will be sold if it is too expensive for a low income person to maintain/operate, or if it is unsuitable for some other reason (like a small exotic sports car).  The proceeds from these sales go to our repair fund to put other cars on the road.  We also accept boats and motorhomes/RV's which will be sold to support the repair fund and program operating costs. 

DONATE YOUR VEHICLE
Tax Deductible
Call 256-551-1610