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Car Donation - What is this Scam?
Posted on 1/11/24 at 4:39 pm
Posted on 1/11/24 at 4:39 pm
Has this been discussed?
The obvious one is the obnoxious Kars for Kids commercials but there are many other outfits running this same scam.
I can't imagine there are enough people out there donating their old or junk cars for these operations to even fund their advertising budget.
What's the scam?
The obvious one is the obnoxious Kars for Kids commercials but there are many other outfits running this same scam.
I can't imagine there are enough people out there donating their old or junk cars for these operations to even fund their advertising budget.
What's the scam?
6
Posted on 1/11/24 at 4:42 pm to deeprig9
quote:
I can't imagine there are enough people out there donating their old or junk cars for these operations
There are. I’ve donated 2 cars and a boat to St.Vincent De Paul over the years. It’s for the tax write off.
This post was edited on 1/11/24 at 5:11 pm
Posted on 1/11/24 at 4:46 pm to BigBinBR
quote:
It’s for the tax right off.
I know, write! What's this guy's deal?
Posted on 1/11/24 at 4:50 pm to BigBinBR
quote:
I’ve donated 2 cars and a boat to St.Vincent De Paul over the years. It’s for the tax right off.
Let's say the book value of the 2 cars and the boat is $10,000 (the amount doesn't matter, this is for demonstration purposes).
You get to write* off $10,000 on your taxes. Assuming that exceeds your standard deduction along with any other itemized deductions you have, you might save 15-25% of that $10,000 value on your taxes. So essentially you are giving away $10,000 for ~$2000 tax benefit. Why not just sell the assets at their book value, have $10k in cash, and donate $2000 to the charity and pocket the other $8k?
Posted on 1/11/24 at 4:54 pm to deeprig9
Because no one is donating $10,000 cars. They are donating junk and broken down cars that are worth $500 in scap metal and taking a tax deduction based off of a bullshite $5,000 or more valuation.
They will also come haul it off, so even to get that $500 in scrap value, you would have to pay a wrecker $200 bucks to tow it for you.
They will also come haul it off, so even to get that $500 in scrap value, you would have to pay a wrecker $200 bucks to tow it for you.
Posted on 1/11/24 at 4:57 pm to Bjorn Cyborg
quote:
Because no one is donating $10,000 cars. They are donating junk and broken down cars that are worth $500 in scap metal and taking a tax deduction based off of a bullshite $5,000 or more valuation.
They will also come haul it off, so even to get that $500 in scrap value, you would have to pay a wrecker $200 bucks to tow it for you.
I've scrapped 4 cars in my life and only once did the scrapyard want to change me for sending out BillyBob with the tow truck.
Secondly, how many scrap cars would Kars for Kids have to collect just to cover their ad budget, how much of that $500 real actual value goes to kids, and what exactly does it do for kids?
This post was edited on 1/11/24 at 4:59 pm
Posted on 1/11/24 at 4:59 pm to deeprig9
I'm sure that varies by region. Point stands.
Posted on 1/11/24 at 5:01 pm to Bjorn Cyborg
quote:
They are donating junk and broken down cars that are worth $500 in scap metal and taking a tax deduction based off of a bullshite $5,000 or more valuation.
That was two years ago. They closed that loop hole last year and you only get the actual value. These "charities" are hoping people don't find out about the change. They will be gone soon once it's common knowledge.
Posted on 1/11/24 at 5:02 pm to deeprig9
When my dad died we had an old truck that was tied under the business. Didn’t feel like messing with selling so we called them and they came pick it up. Wasn’t worth me stopping what I had to do to sell it.
Posted on 1/11/24 at 5:08 pm to Art Vandelay
quote:
When my dad died we had an old truck that was tied under the business. Didn’t feel like messing with selling so we called them and they came pick it up. Wasn’t worth me stopping what I had to do to sell it.
And you want to be my latex salesman.
Posted on 1/11/24 at 5:13 pm to FAP SAM
quote:
I know, write! What's this guy's deal?
Yeah, yeah. I should have proofread before submitting.
Posted on 1/11/24 at 5:31 pm to deeprig9
Charity Navigator
Cars for kids got 3 out of 4 stars.
Don't know if that is good or if this is reliable web site.
Cars for kids got 3 out of 4 stars.
Don't know if that is good or if this is reliable web site.
Posted on 1/11/24 at 6:03 pm to deeprig9
Kars 4 Kids is a scam that helps Hasidic Jews in New York. Not even kidding. The only reason to donate a car is because it doesn’t run and you want it taken off your hands like a free trash removal service.
Posted on 1/11/24 at 6:10 pm to deeprig9
Like the comment from the car leasing thread. If the question "Let me ask my accountant" doesn't apply to you donating the car may not be an advantage to you. Other than cleanly getting rid of it.
Posted on 1/11/24 at 6:28 pm to deeprig9
Honestly its like donating blood. Are these generous hospitals gonna take my blood for free and give it out for free too? Other wise, if they going to charge someone an exoboratne amount of money that they get for free from me, then I'm not going to give my blood. Set up someone besides me who needs blood and give it to them for free and I'll donate all day long. I'm not giving anything free to some thug hospital.
Posted on 1/11/24 at 6:48 pm to deeprig9
There is a little bit of confusion in this thread. First, kars for kids does work with Jewish kids but they help many other organizations as well such as cancer research and things like that. Second, I have donated cars to multiple places including Kars for kids. It is true that if they turn around and sell it at auction then you can only write off a percentage of it. That is usually what they do with junkers. However, when you donate a decent enough car they try to work other angles so that you can write off 100% of its appraised value. A big route is that they will try to use the car at their organization or one of the many others that they are partnered/affiliated with. Think kids camps, vans for transportations for medical care, etc. They specifically do this to incentivize people to donate more expensive cars. I donated an army hummer that I redid and was able to write off every single dime I had in it. Eventually they sell the car and use the money but after a certain point it doesn’t impact your write off.
This post was edited on 1/11/24 at 6:51 pm
Posted on 1/11/24 at 9:30 pm to TyOconner
quote:
There is a little bit of confusion in this thread. First, kars for kids does work with Jewish kids but they help many other organizations as well such as cancer research and things like that. Second, I have donated cars to multiple places including Kars for kids. It is true that if they turn around and sell it at auction then you can only write off a percentage of it. That is usually what they do with junkers. However, when you donate a decent enough car they try to work other angles so that you can write off 100% of its appraised value. A big route is that they will try to use the car at their organization or one of the many others that they are partnered/affiliated with. Think kids camps, vans for transportations for medical care, etc. They specifically do this to incentivize people to donate more expensive cars. I donated an army hummer that I redid and was able to write off every single dime I had in it. Eventually they sell the car and use the money but after a certain point it doesn’t impact your write off.
Sounds like it's a scam. Sounds like a whole bunch of administrative overhead. Sounds like pennies get to kids. Sounds like scrap it yourself and donate the cash proceeds to a local charity.
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