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Explanation of gabe's autos 03 04
- 1. DEVELOPMENT OF A VEHICLE PROGRAM IN CAPE GIRARDEAU 1. 2. 3. Researched programs around the country Set up a 501(c)(3) to provide the donation letter Found out that people donating vehicles to 501(c)(3) organizations need donation letters to use the retail value, found on www.kbb.com or www.nada.com, as charitable gift, if they itemize taxes. We estimate the value as low, medium, or high using the criteria on nada.com and provide a letter with our 501(c)(3) number on the letter. 4. In most cases the best way to do this is to have a place for storing the vehicles and urge the donor to leave the area blank on the Gift Affidavit form and leave the dates off of everything, including the title. You can then put the recipients name on both the title and the gift affidavit and put the current date on these forms. This allows the vehicle to be given directly to the recipient at no tax cost and saves on the paperwork and hassle of putting the title in the name of the 501(c)(3). Otherwise you have to wait for the title transfer and can pay up to $12 additional for this transfer only. However, you can do this and get a temporary license for the recipient that will allow 30 days to transfer the title and then put it in the name of the recipient. Then you will have to provide a Bill of Sale, in most cases, to the recipient that shows a minimum of $100 value, pay the tax on the sale, and go through most things twice! Titles cannot be given twice in a row; so youll need to look for the code on the title that indicates this or call the license bureau to check on this before you take the gift. If it has already been given, the donor can re-title it in the name of a family member and pay the cost for the minimum value and title transfer then give it to your program and earn the retail value donation deduction on their gift. 5. We normally give the vehicles to low-wage workers, who are being mentored, when the mentors call with a recommendation. Mentors are normally more protective of what we offer than we would be ourselves mentors take this very personally as a mission! At times we provide vehicles for people in need in the community when there are good programs advocating for the need and verifying the need, etc. We also provide vehicles for community programs. 6. Its good to develop relationships with reliable mechanics to check the vehicles out as to their road-worthiness, etc. Then you can depend on those mechanics to do a good job for you. This develops into their wanting to do the best and save you money where they can. Sometimes youll even find some local mechanics who will volunteer some work for free! Weve had some mechanics donate vehicles to us and offer to let us handle mechanics liens on vehicles and send out all the required letters to transfer ownership to your program. Many times these are vehicles that have been repaired but repair costs were never paid. 7. We sometimes get mechanics ordered to do community service and they have provided some free labor, which you know is the reason a lot of vehicles are scrapped instead of repaired. 8. We require that recipients bring in their insurance certification before they are given the vehicle. If the community could start a vehicle maintenance educational program, this would help many people unfamiliar with taking care of a vehicle. 9. Some programs hold the titles for a certain amount of time, which we have tried to avoid. Others ask people to pay something for every vehicle. We do ask for some repayment of expenses in a few cases; but we dont always receive much on this end. Weve learned not to do things based on anyones promise to repay; but base it on need and progress in moving toward God in faith and toward successful implementation of their life plan. 10. As of 2006 an additional federal form is necessary for donation tracking 3-part form 1098-C 11. Donors receive the 1098-C, a copy of the MO Gift Affidavit (or whatever your state DOT requires in vehicle transfers), a letter from the 501(c)(3) with FEIN # and thanks / purpose / value of their gift, and a copy of the title, if they wish. 12. Recipients must provide an insurance card, and then take their PAID county personal property tax for the appropriate year or a tax waiver statement, along with a passed vehicle inspection and the insurance card to the license bureau to transfer the title whatever fees are regulated.