What Happens to Donated Vehicles?
Our technicians inspect every donated vehicle and determine how to derive the greatest value for VFC families, while maximizing the donor’s tax deduction. Cars, trucks, SUVs and vans fall into four categories:
|Vehicle Description||What We Do||Tax Deduction*|
|It can be reconditioned for less than $1,000 and will provide at least two years or 24,000 miles of reliable service. Usually, the car is less than 12 years old and has fewer than 140,000 miles.||We recondition the vehicle, covering all costs, and award it to a prequalified family.||The vehicle’s fair market value.|
|It needs a major repair (e.g. new transmission) but is otherwise in very good condition.||After repairing the vehicle to maximize its value, we sell it to the public through Freedom Wheels, our used-car retail business. We use all proceeds to prepare other cars for worthy families.||The vehicle’s fair market value, minus the cost of repairs.|
|A luxury car that’s in good condition.||VFC doesn’t provide luxury cars to low-income families because they can be expensive to repair and maintain. We repair the vehicle and put it through state inspection to maximize its value. Then we sell it through Freedom Wheels, our retail used-car business. Proceeds allow us to prepare other cars for low-income families.||The selling price, up to the vehicle’s fair market value.|
|The vehicle doesn’t meet our reliability standards and can’t be improved cost-effectively.||We spruce up the vehicle and select an auction partner where the selling price will be maximized. We assign a minimum bid value to assure it isn’t sold for less than a fair price. Proceeds allow us to prepare more cars for low-income families.||The selling price, up to the vehicle’s fair market value.|
|Other Vehicles||What We Do||Tax Deduction*|
|Motorcycles, boats and RVs||Select an auction partner where the selling price will be maximized. We assign a minimum bid value to assure the vehicle isn’t sold for less than a fair price. All funds raised help us prepare more cars for low-income families.||The selling price, up to the vehicle’s fair market value.|
Please note that these are guidelines for how donations will be used. Vehicles for Change reviews and evaluates each donation on a case-by-case basis.
Every vehicle donated to Vehicles for Change is equally important, whether it goes to a family or raises funds that go toward preparing other cars for families. About one-third of our operating budget comes from the sale of vehicles.
Read more about the Vehicles for Change Tax Advantage.
*Deductions may vary depending on individual circumstances, so please consult your tax advisor and see the Internal Revenue Service’s “A Donor’s Guide to Vehicle Donations.” The IRS’s “Determining the Value of Donated Property” is another helpful resource.