Car Donation Charity
Where Your Contribution Goes
Whenever you contribute to a charity you are left with a great feeling that you have in some small way made a difference for others. Profits from car donations have become a great means of support for various charities to fund their organizations.
You
may have questions about how your car donation is handled and what percentage
of the donation goes to the cause. There are administration and fundraising
costs that eat up a part of every donation. You can find out how your
donation is divided by addressing your concerns and questions to a charity
before you make your contribution.
What happens to your car donation once it leaves your hands? Car donations serve many purposes for charities of all types. Some smaller charities actually use the cars for transportation purposes. Many charities need vehicle transportation to help carry out the group's program service activities.
Vehicle Sales
Many charities sell these vehicles to raise funds for the organizations.
Sometimes the car donations are sold directly through the charity while
others make their sales with the help of an outside seller.
When
a used car dealer or auctioneer is used the sale is divided. The charity
will usually receive a flat fee or percentage of the actual sales price
or a combination of both. A typical arrangement is for the third party
that handles the sale to get a 30% commission, leaving 70% for the charity.
In this situation all parties benefit (including the donor who receives
a tax receipt).
The Charity Rating Guide informs donors about how hundreds of national charities handle donations. Current issues related to vehicle donations are discussed in order to keep donors informed.
Sixty percent of your car donation should go to program services. Fundraising and administration costs should not exceed the remaining fourty percent. Administration costs are often heavier for newer charities until they are more established.