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Car Donations Losing Speed

By Robert Gold THE NEWS-TIMES

DANBURY - Mike Malone wouldn’t mind some shiny new wheels for his charity.

Every year Malone oversees the American Red Cross of Western Connecticut’s car donation program. The charity sells the cars for cash at auctions across the state.

But this year Malone has noticed some changes in the cars coming in, thanks to a new federal tax law.

No longer can donors deduct a car’s “fair market value” when donating it to a charity. Now they must wait until the car is sold and deduct the price the charity gets for the car.

“We’re not getting our Jaguars and Mercedes like we would occasionally get in other years,” Malone said.

Instead the charity is getting older cars, which they sell for about $300 each.

The new tax law was designed partly to prevent people from inflating how much their cars were worth. But some charities are suffering because of it.

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