Anybody who listened to “Car Talk” will remember that one way of supporting public radio is to donate your car. Call them up, have the vehicle towed away and get the satisfaction supporting a good cause. Many nonprofits have similar fundraisers, where they take an unwanted vehicle off a donor’s hands and use it to support their cause. It seems like a win-win, especially since the donor can claim a tax deduction too.
Unfortunately, it isn’t quite so simple. Charities do receive funds from vehicle donations but usually far less money than the donor imagines. It may also be far less than they claim when filing taxes. How much is a donated car worth to your charity of choice? Very few people realize that it may be only $25. This is because most charities work with companies that handle the processing of the donated cars and in turn give the non-profit a flat fee or a small percentage of the vehicle’s price when sold. In either case, it is normal for your non-profit to only receive about $50 in the end.
Another problem arises with tax deductions. The IRS formerly allowed a deduction of a vehicle’s blue-book value in all cases. Recently, however, they changed the rule so that only the amount of money the charity receives can be deducted — so often only about $50. Few people know this, and many continue to make incorrect deductions after donating a car. But deductions for non-cash donations are common triggers of an audit, according to the American Institute of Philanthropy, which recommends that donors seek non-profits that use donated vehicles in their programming rather than simply for fundraising.
There are not many such programs. Fortunately, though, there’s a unique non-profit here in Athens that puts vehicles to good use and is always welcoming donations of used but reliable cars. This is the Transformation Station, a program of Good Works. Good Works provides the donated vehicles to individuals in need in exchange for volunteer work in the community. Since transportation is crucial to prosperity in a rural area, and since the purchasing a car is major impediments to economic independence to many lower-income people, the Transformation Station fits right into Good Works’ goals of alleviating poverty in the region.
So how does it work? A participant in the program earns “points” for everyday volunteering at the Transformation Station. After 24 points, participants may take home a vehicle. Most people volunteer once per week for 12 weeks, at two points per day. Cars, though, aren’t the only item available at the Transformation Station. For varying numbers of points, there is also food, appliances and bicycles. The Transformation Station is built around community and service, and the experience is meant to be affirming and meaningful to everyone involved. Since 2004, the program has provided 164 vehicles to volunteers, who collectively have given over 2000 hours of service yearly to the community.
For more information, including how to donate or receive items, visit www.good-works.net/transformation-station/.
Alex Armstong is a sophomore studying French at Ohio University.
