Castoff autos give charities extra pep
By TOM SPOTH, Sun Staff
Here’s a way to get rid of that old clunker of a car, without the hassle of placing an ad or haggling with an auto dealership over a trade-in.
Best of all, you can feel good about yourself — and even save a little money on your taxes next year.
Just donate your unwanted vehicle to charity. In the year 2000, an estimated 733,000 people claimed a total of $654 million in tax deductions for donated vehicles, according to a November 2003 report from the U.S. General Accounting Office (GAO).
All it takes is a phone call. There are numerous companies that will pick up your vehicle, sell it, and give the proceeds to a charity.
Beware, though: The IRS is cracking down on unscrupulous individuals who attempt to claim a deduction higher than the actual sale price of the vehicle. So unless you attach to your tax form a receipt that proves otherwise, no, you can’t deduct $5,000 for that 1979 Ford Pinto.
Kim Schloss of Cars Helping America, a Middleton-based for-profit company that processes donations for about 60 charities, said donations have not slowed notably since the IRS’ new restrictions went into effect. In 2005, the company, which has only three employees, handled about 800 donations, Schloss said.
“People are just happy to have the cars out of their hands,” Schloss said. “It’s a much better deal for donors than trading in their vehicles.”
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