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June 9, 2006, Newsletter Issue #14: Ask to whom the proceeds will go, and in what percentages.
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Tip of the Week
Several years ago, the General Accounting Office reported that many charities, using third party vendors in their car donation programs, received as little as 5% of the amount claimed as a deduction on the donor’s tax return. While the 2005 changes to IRS guidelines for vehicle donations aims to ensure that charities derive more benefit from donations, it is still wise to investigate your car donation options to be sure the greatest amount of benefit goes to your chosen charity. Be just as informed about your automobile donation as you would be with a cash donation: if the charity does not accept your vehicle directly, ask about the dollar amount or percentage received by the charity.
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