wrote:
>
> On Sun, 12 Dec 2004 12:06:34 -0800, David Ross >
> wrote:
>
> wrote:
> >>
> >> On Mon, 29 Nov 2004 10:53:54 -0700, "Determinator"
> >> > wrote:
> >>
> >> >
> >> >"Freddie Newsgroup" > wrote in message
> >> >news:e%yqd.378152$%k.164115@pd7tw2no...
> >> >> There is a legitimate group here in Canada that uses this program to raise
> >> >> funds and is quite successful at it too. I believe it is the Kidney
> >> >people.
> >> >>
> >> >
> >> >I donated my old clunker to the Alberta Kidney Foundation.. but they only
> >> >give a tax receipt for the scrap value of the vehicle ($50) rather than a
> >> >blue book value.
> >> >
> >>
> >> Maybe you should tell us the year/make/model and condition of the car
> >> to the full effect of your issue. Did the car even run?
> >
> >Starting in January 2005, a charity receiving a donated automobile
> >and then selling it must report the sales price to the IRS and the
> >donor. The donor's itemized charitable deduction will then be
> >limited to that amount.
>
> Oh, that's a big change. Let me see if I get it. Rather than writing
> off the 'book value' the charity will sell the vehicle and tell you
> how much they got, so you can write off that amount?
>
> Makes me further solidify my option that car donation programs are
> tinderboxes for corruption. IMHO: Sell your car yourself, and donate
> that money directly.

That's what I've been saying for six years at
<http://www.rossde.com/donate_car.html>.

Someone with an old car wanting to make a donation has two
choices:

Donate the car to a charity; let the charity collect about 1/3 of
the car's value (the rest going to the broker who sells the car);
and risk an audit by the IRS.

or

Sell the car yourself (priced cheaply for a quick sale); give a
charity a cash donation (the charity receiving the full amount);
and get a receipt that you can show the IRS.

--

David E. Ross
<http://www.rossde.com/>

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