Donated junkers head for the scrap heap, reliable cars go to
working folks and hot donations -- like that '91 Lexus and Mazda Miata
-- are posted on eBay.
Ka-ching.
When all goes well with charitable vehicle donations, nothing is
wasted and everybody wins, according to Jim Brown, program director
for the auto donation program of Volunteers of America/Western
Washington in Everett, one of the oldest and largest such programs in
the state. People who desperately need cars get them for low cost,
charities get a boost and donors avoid hassles, feel good about
helping others -- and get a tax deduction.
But acknowledging that not all such donations go smoothly, federal
and state agencies are increasing both scrutiny and consumer advice,
particularly as end-of-year donations rise.
The Secretary of State's Office, to better track charitable car
donations, has for the first time created a separate category for such
donations in its new database.
"Definitely, charitable car donations are growing," said Austin
DePaolo, executive director of the Martin Luther King Jr. Family
Outreach Center in Spokane. The agency is one of 11 non-profits that
benefit from Cars for Charity, a tax-exempt organization that takes in
and sells donated cars, disbursing the proceeds.
Vehicle donations are attractive for both donor and charity because
they "give the most return for the least amount of effort" compared
with other fund-raising methods, DePaolo said.
"Donating a car is a very simple, straightforward thing. It
shouldn't involve a whole lot of hassle," said Dennis Poor, supervisor
for the Seattle-based consumer protection area, a division of the
State Attorney General's Office that includes King, Snohomish, Clallam
and Jefferson counties.
Poor said his office has received only a few minor complaints this
year involving charitable car donations, and neither required action
by the Attorney General's Office. Both, however, involved what Poor
and others call the most critical issue facing donors: ownership, as
established by vehicle titles.
Those who fail to clear their car titles, or do not file the
required seller's report, can -- and have -- wound up being liable for
towing, license tab and other fees. Such outstanding fees can, for
example, block a driver's license renewal.
"Everyone should file a seller's report, whether they're selling or
donating," Poor said.
Rebecca Sherrell, charities project manager in the Secretary of
State's Office, said the amount a charity receives from car donations
varies according to agreements made between parties. Some
organizations, such as Volunteers of America, have their own donation
lots. While many charities rely on volunteers, such as mechanics,
others may sign pacts with a range of organizations, including towing
and salvage companies, charitable fund-raisers or for-profit vehicle
processing centers. The greater the number of parties and fees
involved, the higher the overhead and the less money to charities,
Sherrell and others said.
Overhead is a fact, Brown said. More than 50 percent of the cars
donated to Volunteers of America go to salvage, necessitating such
fees as towing -- at $80 or more per car. In the last few years, the
organization also has spent $200,000 a year in newspaper, TV and other
advertising.
But the generosity of many -- including repeat donors -- has helped
the program grow from the annual $40,000 raised 10 years ago to about
$1 million raised last year. The money is distributed to 30 local
charities and the organization's own food distribution programs,
crisis care line, children's camps and dispute resolution center,
Brown said.
Over the years, Brown has marveled at the generosity of donors,
including some who donate many times. Sometimes, transactions can help
ease grief. One woman who donated the helicopter of her deceased son,
Brown said, received "a sense of closure" when it was ultimately sold
for $500 to a chopper enthusiast.
Sam Granato, executive director of the Silverdale Chamber of
Commerce, said his family has donated three cars over the years. A
local towing company agreed to tow their Peugeot free of cost to
Bremerton Vocational Technical School, where the donation became a
teaching project. A second car, an old Mercedes, went to Seattle-area
homeless, and a third to a charity helping the blind.
Granato said the family had a good experience each time.
"We tended to keep cars way after they were paid for, and ran them
for years," Granato said.
"Instead of trading them in, we preferred to donate. It felt like a
win-win for us because we got a tax deduction, but we were also
helping people."
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