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How to Avoid Duplicitous Car Donation Programs

Duplicitous – marked by deliberate deceptiveness especially by pretending one set of feelings and acting under the influence of another.

Duplicitous behavior in car donation programs is unfortunately, not uncommon. It’s a hard fact that not all car donation programs are created equal. The biggest problem with organizations claiming to be acting on behalf of their charitable partner(s) is the return given to that charitable organization. It is not out of the ordinary for a car donation organization claiming to benefit a charity to return less than 50% of vehicle proceeds to that charity. When every hard earned and donated dollar is intended to reach an important cause, returning low amounts to charities is disappointing and confusing to donors. Don’t get duped by other car donation programs, follow our tips below to make sure that your donation goes exactly where and to whom you expect.

Donor beware of these car donation program scams:

>>Catchy slogans or annoying advertisements – each dollar spent on getting you, the donor, to remember their name is a dollar that your charitable cause does not receive. Instead of starting with an ad, search for the nonprofit/charitable organization that you would most like to donate to. Car donation programs that work with charities you admire such as: Habitat for Humanity Cars for Homes or Feed the Children, are likely to be a positive and rewarding donation experience for everyone involved.

>>Cute sounding names – most times involving children or animals.

>>Misspelled versions of common charities – think Habitat for Humans instead of Habitat for Humanity.

>>Gimmicks or gifts for donating – the IRS allows donors who itemize their taxes to claim a deduction on the selling price of their donated vehicle. Incentives to donate such as: free goods or services must deducted from said selling price. In the IRS’s publication on charitable deductions it is stated that “if you receive a benefit because of your contribution such as merchandise, tickets to a ball game or other goods and services, then you can deduct only the amount that exceeds the fair market value of the benefit received.” If you donate a $500 car, and receive a $400 vacation voucher, you may only deduct $100, according to the IRS.

>>Net rate of return versus gross rate – when vehicle donation programs claim to return a percentage of the net, this can include a number of unfair deductions, expenses and fees. It’s the gross rate that should be used for these type of calculations, as the gross rate includes any and all expenses incurred. Car Donation Wizard consistently returns upwards of 75% of the GROSS return from each donated vehicle back to our charitable partner, ensuring that your vehicle donation dollars are utilized by the organization of your choice.

Car donation is an amazing way to benefit incredible organizations making a real difference in today’s world. At Car Donation Wizard, we are incredibly proud of the work our charitable partners do and our ability to maximize your vehicle donation for them.

Resources:

Dictionary Definitions

IRS 8 Rules for Charitable Deductions

Car Donation Wizard Charities

Attorney General’s Report on Vehicle Donations