The Cars 4 Causes Blog.

Congressman Dave Camp (R-MI), Chairman of the Committee on Ways and Means announced that the House Ways and Means Committee will hold a hearing to examine the itemized deduction for charitable contributions as part of the Committee’s work on comprehensive tax reform.  The hearing will take place on Thursday, February 14, 2013, in Room 1100 of the Longworth House Office Building, beginning at 9:30 A.M.

 
BACKGROUND: Section 170 of the Internal Revenue Code provides a deduction to the roughly one-third of taxpayers who itemize their deductions for charitable contributions.  Taxpayers may contribute on a deductible basis to institutions such as churches, universities, hospitals, museums, and certain other tax-exempt organizations.  Certain limits apply to the deduction, such as percentage-of-income limits and purposes for which contributions may be made, and the recently reinstated overall limitation on itemized deductions for taxpayers above certain income thresholds.
Proposals to limit the deduction for charitable contributions have appeared in recent years, in some cases as part of broader tax reform proposals that lower rates and in other cases for the purpose of raising taxes to fund specified levels of government spending.  Examples of some of these restrictions include: limiting the tax rate against which contributions may be deducted; a dollar cap on total itemized deductions; a floor below which contributions may not be deducted; and the replacement of the deduction with a tax credit available regardless of whether the taxpayer itemizes.  Different types of limitations could have varying effects on giving.

  
As part of the Committee’s ongoing commitment to pursue comprehensive tax reform in an open and transparent manner, the Committee is holding this hearing to allow stakeholders and members of the public the opportunity to share their perspectives on the deduction and on various proposals to modify it.
In announcing this hearing, Chairman Camp said, “Public charities and private foundations perform invaluable services for our society, especially during this time of economic slowdown and high unemployment.  These organizations depend upon the goodwill of the American people – the most giving and charitable people in the world.  Because of the critical role that charities play, the Committee must hear directly from the charitable community before considering any proposals as part of comprehensive tax reform that might impact their ability to obtain the resources they need to fulfill their missions.”

 
FOCUS OF THE HEARING:

The hearing will examine the itemized deduction for charitable contributions as part of the Committee’s work on comprehensive tax reform.  It also will receive testimony from witnesses on previous proposals to modify the deduction and its value.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms.
From the Committee homepage, http://waysandmeans.house.gov, select “Hearings.”

 
Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” 

Once you have followed the online instructions, submit all requested information.

ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close of business on Thursday, February 28, 2013.  Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings.

 
FORMATTING REQUIREMENTS:

The Committee relies on electronic submissions for printing the official hearing record.  As always, submissions will be included in the record according to the discretion of the Committee.  The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines.  Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below.  Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All submissions and supplementary materials must be provided in Word format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased.  All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness.
The Committee seeks to make its facilities accessible to persons with disabilities.  If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested).  Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.

Cars 4 Causes urges all of its Preferred Charity Partners and all of its Supported Charities to submit their written comments for the hearing record by the February 28, 2013 deadline.

Recently, one of Cars 4 Causes’ generous supporters donated a rare 1947 Ford Business Coupe and asked that we share the proceeds from its sale with the Wounded Warrior Project.  Wounded Warrior Project is a complete rehabilitative effort to assist our servicemen as they recover and transition back to civilian life.

To get the greatest proceeds from this incredible classic, Cars 4 Causes will auction it through McCormick’s Palm Springs Collector Car Auctions on Sunday February 24, 2013 at 12:10pm. We are expecting great things from this sale to help us support the Wounded Warrior Project.

This 1947 Ford classic, sports a 427 Ford engine with a whopping 400 horsepower and MSD ignition.  Its equipped with 2 ½” headers and exhaust, a C-6 Transmission, 8” Ford rear end, 3:50 gears, independent front suspension, power steering, 4 wheel power disc brakes, chopped, shaved door handles, electric windows, air conditioning, heater and stereo and disc player.

Whether it’s a classic car, like this one, a fine motor sailor or a luxury yacht, Cars 4 Causes® and Boats 4 Causes® are fortunate to receive several similar unique donations throughout the year that benefit the charity, church or school that holds a special place in each donors’ heart.

Our in-house experts are proud to be selected by our donors to maximize the proceeds from these vehicles that can be used for charitable purposes.  In many cases, the donors’ have tried to sell their vehicles themselves before donating, but in the end, Cars 4 Causes and Boats 4 Causes have a loyal and unique following of buyers that allows us to, not only find a buyer, but also find one that will allow us to get the maximum value from the donated vehicle.

Can your Car Donation Really Save you Money???

So here you are at the end of the year and you’re doing everything you can to defer your income and accelerate your expenses. You want to leave no stone unturned when it comes to potential tax deductions. That’s why its 10pm on a Friday night just 1 day before the end of the year and you’re in your garage wondering if donating your old car would be a good idea.

You’ve seen the ads on TV, you’ve heard the radio jingles, and you’ve even seen the billboards close to your office; “Donate your Cars to Charity; Get a Tax Deduction this Year!” But, is it really worth it? Can you really save money on your taxes by donating your car?  And who do you donate it to?  How do you choose, there are so many ads?  If buying your car was such a horrible experience, how can you trust someone to take it from you for free?

Well, these are all good questions and, unfortunately, I don’t have any answers for you. This is one you’ll have to figure out on your own. But I can offer a few suggestions to help you with your decision.

A.  A Car Donation to a qualified charity is deductible under the IRS Code and could result in significant tax savings for you depending on the value of the car donation and your own tax situation. Please refer to the IRS website regarding car donations and always consult your tax professional. I’m sure he will appreciate your call at 10pm the night before New Year’s Eve.

B.  The car donation business is a sorted group of players, very few of which you would want to invite into your home for dinner and fewer still that you would want to invite to your little private garage party the day before New Years Eve. Don’t get me wrong, we’re all good people, but when we are competing with hundreds of others all standing on the corner with a cup in our hand waiting for some generous soul like you to place a vehicle in that cup so that we don’t starve this winter you get a lot of weird behavior that makes us all seem like a bunch of undesirables. “Hey, over here” yeah you!  Thinking about donating your car? How about a free vacation? Would you like that? No? How about a gas card? You need one of those? I’ll pick up your car for free? I’ll do all the paperwork? Take a look at these pictures of my starving family, my littlest is so hungry, please help!”

Yeah, it’s weird out there, and that makes it difficult for you to trust any of us.  But still, you could realize a substantial tax savings from donating your car and if you can use the deduction, it’s something you should consider. So here’s what you need to do.

1. Donate directly to a charity. There are few charities out there that operate vehicle donation programs, and there are a lot more who engage the services of a commercial fundraiser who operates the vehicle donation program on their behalf.  Seek out the charities that operate their own programs and you have a greater chance that the proceeds from the sale of your donated vehicle actually go to fund a charitable cause and not line the pockets of a private enterprise with a parasitic relationship to the non-profit world.

2. Make sure the charity you choose has the ability to recondition your car and sell it retail.  A retail sale of your donated vehicle can bring the highest price for your donation and that translates into the highest tax deduction value for you. Of course, not every donated vehicle can be or should be reconditioned. Sometimes it doesn’t make sense financially and the charity is better off wholesaling your vehicle to get the highest return. But, if the charity you choose doesn’t have this ability, you could be leaving a lot of tax savings on the table by giving your car to them.  Let’s look at an example:

Here’s a vehicle that was donated to Cars 4 Causes this year. It is a 2001 BMW 540i with 97,000 miles. When we received this vehicle at one of our sales lots, it was found to be in good mechanical conditions, with excellent interior.  The body was intact, but the vehicle had been stored outdoors and the paint and finish had severe scorching and weather damage. Repairs needed were new brake pads, grill trim replacement, passenger rear view window cover replacement and a paint job. Had we sent this vehicle to one of our wholesale lots we would have received $1,500 to $1,800 maximum for the vehicle in its donated condition.

Cars 4 Causes has the expertise and staff to perform minor repairs to its donated vehicles such as those that were needed on this BMW. So, we reconditioned this vehicle and sold it through our on-line retail sales outlet. The sales price received for this vehicle – $6,100. That’s a huge difference and one that you should certainly pay attention to if you’re interested in getting the maximum tax write off for your vehicle donation.

3.  Look for Experience and Longevity. Make sure the organization you donate to has the experience to handle your donation properly, has been around for a long time and isn’t just some fly-by-night organization that just opened its doors and posted a website to prey on year-end donors like you. Cars 4 Causes is America’s 1st vehicle donation charity. We opened our doors in 1997. We’ve handled more than 160,000 donations and raised over $100 million, sharing these proceeds with more than 16,000 charities, schools and religious organizations through the U.S.

4.  Demand Visibility. As you are researching all of the available organizations that will accept your donated vehicle notice how many of their websites don’t provide an office address, a list of the people running the organization, copies of their IRS Form 990’s or a copy of their annual audited financials. Without these items to evaluate the organization you might as well be driving at night with your lights off!  It’s important to know who you are giving your vehicle to and what they are doing with it. Don’t compromise on this point or your could find yourself without a vehicle, without a tax receipt and without any way to find out what happened or find anyone to help you.

If you determine that donating your car is right for you, Cars 4 Causes would be grateful for your vehicle donation. We would do our best to get you the highest tax write-off value and the most money for charity and to make your donation process as convenient and painless as possible. Best of luck with your decision and happy holidays to you and your family.

By: Lori Singmaster

After fourteen years of living on the Cars 4 Causes website, the Boats 4 Causes boat donation program is finally moving out and getting a place of its own!!

Since 1997, when we launched Cars 4 Causes, we accepted our 1^st boat donation and have been quietly accepting boat donations all this time from around the United States.   Currently, we have so many boat donations each month and such a tremendous following of buyers interested in purchasing our donated boats that it only makes sense to give Boats 4 Causes  its own website, www.boats4causes.org.

Our new website addresses the specific needs of those wishing to donate their boat, offering each donor complete transparency into our process, resulting in the highest price for the sale of their boat donation.   The donation process is simple and can be accomplished by filling out an online donation form from the new site or calling one of our donation specialists at 855-800-2628(BOAT).

The process of donating a boat is a little more emotionally complicated than that of a car donation.  Boat donors tend to be a little more attached to their boats and they want to make sure that their “baby” is passed on to the right organization.   Often times, it takes a boat donor 30 to 60 days to make the decision to donate once they have first made contact with Boats 4 Causes.

With each boat donation, our team creates a unique relationship with the donor, understanding the ins and outs of their boat donation and enjoying the memories and good times that each donor has had on his boat.

Many times donors are parting ways with their vessel because of a death or illness of a spouse.  The process of getting rid of their vessel is usually very emotional and hard for the donor.  Usually there is nothing wrong with the vessel, they just are unable to use it any longer or there is a lot of emotion tied to it.

Many donors also come to us after they have tried selling their vessel themselves, only to find it difficult, frustrating and sometimes failing to receive any bids at all on their prized possession.  Boats 4 Causes can sell that same boat in 7 days and many times a bidding war ensues.  

We are a national brand and we have buyers from across the United States checking our website daily for new listings.  This is the result of fourteen years of hard work in cultivating the selling side of each boat donation. 

When a potential buyer sees a Boats 4 Causes listing, they trust that we have done our best to be as thorough and accurate as we can when evaluating the boat and its contents and know they will receive a fair and honest deal from Boats 4 Causes. 

Boat donations are tax deductible, so the higher price we obtain from the sale of a boat donation, the greater tax deduction value for the donor.   Our donors realize this and appreciate all of our hard work and brand equity that Boats 4 Causes brings to the table.

We hope you will come to us when the time is right to sell your “baby”.

By Pat Jessup, Executive Director

Ever wonder if your vehicle donation really makes a difference?   Well, take a look at this letter we recently received from Ericka Bigger of Project Understanding, and you might just be convinced that it does.  The name of the family, and family members, have been changed in the interest of privacy.

Hello Pat,

My name is Ericka Bigger from Project Understanding and your organization helped us about 8 months ago with a car for one of our homeless families who entered our Transition House Program.   I wanted to give you a follow up on how [Jennifer] has been doing since being blessed with the vehicle your organization donated to her and her children.

Before the vehicle [Jennifer] was struggling to complete any goals such as gaining employment or finishing her high school diploma since she also has 3 small children with her. Since getting the vehicle [Jennifer] has been attending school regularly at the Ventura Adult Ed and will be graduating in June!! Her teachers and I are very excited as is [Jennifer].  [Jennifer] believed that she would never be getting her high school diploma since she had so many barriers to accomplish. Yet with your great donation it allowed her to get to school everyday to make this goal come true! Also [Jennifer] is working part-time and attending school full-time. As soon as she completes her high school diploma she will be working full-time and will be deciding what her next goal is. Since also being in our program [Jennifer] has saved over $2,000 and continues to save. [Jennifer] has one year left with us and we know she will continue to make us proud.

I did want to share her success with you since your organization’s donation gave her motivation and the tool to continue in her goals.

Thank you for everything

Ericka Bigger

Transition House Program Manager

We receive letters like this every day from many wonderful organizations that are doing great things to help those in need.   If you have been considering donating a vehicle but weren’t sure if or how it would help, rest assured there are people and organizations that Cars 4 Causes works with that depend on these generous donations to improve the lives of many families and individuals in need.  So don’t hesitate, please donate today!