Melvin Feller Discusses How You Can Help a Charity by Donating Your Car

Melvin Feller Discusses How You Can Help a Charity by Donating Your Car

Melvin Feller Business Group in Burkburnett Ministries and Dallas Texas and Lawton Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way and provide a positive outreach as the director. When the heart of a business is service rather than self it can be transformed into a fruitful business ministry earning a profit and being of service to the community and their customers. Melvin Feller is currently pursuing another graduate degree in business organizations.

Help a Charity by Donating Your Car by Melvin Feller

In the past few years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2018, nearly1 and ¾’s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.

As America’s car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these Melvin Feller tips For charitable auto donations, you can minimize that risk, and maximize the amount that actually gets to charity.

Help a Charity by Donating Your Car by Melvin Feller

Find a Charity That Directly Accepts Car Donations


If possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car’s value for their troubles other, less scrupulous entities keep 90%, or even more. If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It is possible that
the charities you already support have a car-donation program that you do not know about. Check with them first.

Help a Charity by Donating Your Car by Melvin Feller

If Your Charity Doesn’t Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You Respect

Remember that you are still making a charitable donation, and do not simply give your automobile away to any charity, just because they are a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.

If It Runs, Drive the Car to the Charity

Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization’s programs. If you can get the car to them yourself, do it.

If You Have to Use an Intermediary Agency, Research the Percentage that Gets to Charity

Help a Charity by Donating Your Car by Melvin feller

The IRS does not require the car donation agencies to contribute a set amount of the auto’s proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give.

The charities are reluctant to criticize the intermediaries, because they do not want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit intermediaries, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.

Make Sure Your Intended Organization is a 501 © (3)

While many organizations can claim non-profit status, donations to 501 © (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 © (3) public charity status.

Help a Charity by Donating Your Car by Melvin Feller

Transfer the Car Correctly to the Charity

Some charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they do not have to re-title the auto. If your charity asks this of you, find another charity. If you do not formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it is used in a crime.

Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and does not bother to register that car, it is still yours in the eyes of the law.

Help a Charity by Donating Your Car Melvin Feller

Value Your Car Correctly

Due to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Over the last few years, the agency stepped up their audits in this area and began to advocate for changes to the laws that govern such deductions. With the passage of the American Jobs Creation Act of 2004, those changes have come. Starting back with your 2005 tax return, you will no longer be able to deduct the published fair market value of vehicles worth more than $500. Under the rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction. This law still holds true today.

Help a Charity by Donating Your Car by Melvin Feller

Complete Your Paperwork

If your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.


Use Fair Market Value (FMV) for the Car

There are several exceptions, which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:

Instead of selling the vehicle, the charity keeps and uses it,

The charity makes improvements to the car before selling it,

Your car is sold at a discounted price to a person with a low income, or if the car is worth less than $500.

In addition, remember to always get a receipt when you donate the car. Again, the IRS is watching this area very closely.

Help a Charity by Donating Your Car by Melvin Feller

Take the Time to Get It Right

It is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. However, if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.

Melvin Feller Business Consultant, Business Owner, Burkburnett ministries and Graduate Student Candidate in Business Organization

Melvin Feller Business Consultants Ministries Group in Texas and Oklahoma. Melvin Feller founded Melvin Feller Business Consultants Group and Burkburnett Ministries in the 1970s to help individuals and organizations achieve their specific Victory. Victory as defined by the individual or organization are achieving strategic objectives, exceeding goals, getting results or desired outcomes and a positive outreach with grace and as a ministries. He has extensive experience assisting businesses achieve top and bottom line results. He has broad practical experience creating WINNERS in many organizations and industries. He has hands-on experience in executive leadership, operations, logistics, sales, program management, organizational development, training, and customer service. He has coached teams to achieve results in strategic planning, business development, organizational design, sales, and customer response and business process improvement. He has prepared and presented many workshops nationally and internationally.