Auto Donation and Advertisements
Most of the time, the initial inspiration of making an auto donation or automobile donation comes from an advertisement which donor see in media. Radio, Newspaper, Internet, TV are common media. Recently online donations by using internet have become very popular among other type of donations.
Base on GAO research about auto donation programs advertisements, there are different ways which auto donation charity or fund-raiser claims to encourage donors to make automobile donations to charity. Most common claims in media like Newspaper, Radio and internet advertisements are:
Ads with claiming of :
Type of media causes the percentage variation. Newspapers have maximum, internet medium and radio minimum percentage.
But there are issues which make IRS concerns about advertisements. In IRS opinion, tax deduction claims (# 1) are deceptive if automobile donation charity doesn't specify that donors must itemize their deductions to claim an auto donation. Of the 147 advertisements GAO reviewed, 117 identified that donors could claim tax deduction but only 7 of them mentioned about obligation of itemization for tax exemption. IRS also concerns about advertisements which claim donor can get deduction full or maximum value market of donation car .
They are deceptive and fraud too. IRS only accepts donated autos deduction in fair market value which means the value, buyer pays for auto and seller takes it. This issue includes ads(#4) which claim "vehicle accepted, running or not" as long as they don't specify the fair market value. How can charity value a vehicle which is not running therefore don't buy this kind of advertisements.
Of the 117 advertisements(#1-Tax Deduction) GAO reviewed, 38 specified donors can deduct fair market value on their tax returns, while 8 specified donor can claim full or maximum market value, other ads referred donors to IRS website, Kelly Book, appraiser, or other sources for auto evaluation guidance. It seems not a joke. This is a serious business, if you want to donate auto, you have to be careful otherwise you'll be penalized by government.
Base on GAO research about auto donation programs advertisements, there are different ways which auto donation charity or fund-raiser claims to encourage donors to make automobile donations to charity. Most common claims in media like Newspaper, Radio and internet advertisements are:
Ads with claiming of :
1) Tax Deduction, causes (70-90)% auto donation or any kind of vehicle like truck donation, rv donate.
2) Serves charitable purpose, causes (72-87)% auto donations.
3) Free towing, Pick up, causes (55-78)% auto donation.
4) Vehicles accepted, running or not, causes (25-55)% auto donation.
5) Avoid hassles, causes (35-40)% auto donation.
6) Some restrictions, (5-25)%.
7) Percent going to charity, (5-20)%.
8) Pick up in 24 hours, Title transfer would be handled, car donation would be used locally, maximum market value(25-60)%.
9) Ads with no claims, causes (5-10)% auto donation.
Type of media causes the percentage variation. Newspapers have maximum, internet medium and radio minimum percentage.
But there are issues which make IRS concerns about advertisements. In IRS opinion, tax deduction claims (# 1) are deceptive if automobile donation charity doesn't specify that donors must itemize their deductions to claim an auto donation. Of the 147 advertisements GAO reviewed, 117 identified that donors could claim tax deduction but only 7 of them mentioned about obligation of itemization for tax exemption. IRS also concerns about advertisements which claim donor can get deduction full or maximum value market of donation car .
They are deceptive and fraud too. IRS only accepts donated autos deduction in fair market value which means the value, buyer pays for auto and seller takes it. This issue includes ads(#4) which claim "vehicle accepted, running or not" as long as they don't specify the fair market value. How can charity value a vehicle which is not running therefore don't buy this kind of advertisements.
Of the 117 advertisements(#1-Tax Deduction) GAO reviewed, 38 specified donors can deduct fair market value on their tax returns, while 8 specified donor can claim full or maximum market value, other ads referred donors to IRS website, Kelly Book, appraiser, or other sources for auto evaluation guidance. It seems not a joke. This is a serious business, if you want to donate auto, you have to be careful otherwise you'll be penalized by government.
If you looking for auto donation center for donating your automobile, don't forget to analyze the ad and compare it with 9 above claiming ads and make sure, it follows the rules.