Vehicle Donation Program - Donation Tool




Vehicle donation program is all about operating vehicle donation processing like advertising for soliciting donors, pick up, towing, titling, storing, auctioning or salvaging for parts the donated vehicles and providing tax exemption documents for donors. There are different type of vehicle donation programs like car donation programs, auto donation programs, boat donation programs, RV donate programs, fundraising program and all other affiliate programs which non-profit and  for-profit organizations operate these donation programs. We like to call these donations programs, donation tools.


Two type of organizations operate vehicle donation program:
1) Non-Profit Organizations (NPO): Charities, Auto Charities
2) For-Profit Organizations (FPO): Fund -raisers
FPO are big companies with infrastructure who are able to pick up, towing, storing all donated vehicles in large volume and then auction in general public or liquidate wholesale. For fee, FPO help small charities which don't have in-house facilities to operate vehicle donation program. In fact, FPO has authority to act as charity's agent under state law. A written agreement between Charity and FPO (fund-raiser) establishes an relationship. FPO  behalf of Charity under fundraising program operates all vehicle donation program processing and all activities should be under Charity's control and approval.


For instance, in auto donations programs case, fundraiser's car donation services behalf of auto donations charity would be:
1)Solicit donors to donate automobiles by advertising on media like internet (online donations).
2)accept, process and sell the donate autos.
3)After deducting expenses and FPO's fee, transfer remainder proceeds to auto charity.
4)Providing donors auto donation tax exemption document base on donated vehicles value.


The question is that vehicle donation program suppose to be helping needy people program or helping greedy people program. As a matter of fact questionable point in vehicle donation program and relationship between NPO and FPO is the  percentage of proceeds goes for charity purposes which is helping hands purposes. Donors get their tax benefits, FPO get their profit, NPO still is running but how about people in need, do they take full advantage of this donation programs thing.


We like to give you an example of actual vehicle donation program processing base on GAO analysis. Donor has donated 1983 truck  for $2400 tax deduction claimed to fund-raiser. Truck sold at auction for $375. Fundraiser after deducting $312.00 fee, splitted the remainder proceeds of $63.00 with auto charity. The charity received $31.50 which goes for humanity purposes. Pretty amazing, isn't it?


Sometimes goodwill donors donate rv to afflicted people  from natural disaster who lost their house to have a temporary place to live. But who knows, maybe  affiliate agent like vehicle donation program sell the RV in much much lesser price than donors expect and spend the money for some other needy people. These kind of things makes you to keep inform yourself of charity's activities and track of your charitable used vehicle donation.