Car Donation FAQ's

Q. How much will I get for a tax deduction?

Go to www.kbb.com and look up the Private Party Value of your car. Be honest about the vehicle's condition. You will have a value in minutes. This will be your tax deduction. Or, call 507-345-0446 and we will look it up for you. The tax benefit you receive depends upon your situation. We encourage you to consult a tax professional.

Q. I thought the IRS changed the rules for car donations. How can MVAC give me such a good tax deduction?

The IRS rules for donating a vehicle did change on January 1, 2005. Many charities are now required to first sell the vehicle and then send a receipt to the donor for the exact amount of the sale. (One example of how this applies is when a charity sells a donated vehicle at auction.) HOWEVER, there ia an exemption to this rule when charities like MVAC use the car to directly help people in need. This exemption allows donors to claim the Private Party Value for their vehicle. Plus, they do not have to wait until it is sold to get a receipt. Your generous donation to MVAC will be used to help low-income indivudals and families in our area. Owning a reliable vehicle makes a real difference for people as they get to and from work and become self-reliant. Donating to MVAC qualifies you for the best possible tax deduction!

Q. Does MVAC accept any car on donation?

MVAC accepts almost any car. Over 85% of vehicles proposed for donation are accepted. Unlike some charities, age of the vehicle is not a factor. Our objective is to get low-income people to and from work. If your car is suitable for this purpose, we will accept it. This even includes vehicles with mechanical problems and (in some cases) body damage.

Q. What kind of vehicles are not accepted?

Because Wheel Get There is designed to be self-sufficient, we cannot accept vehicles where the cost of repairs exceeds the value of the vehicle. However, we are able to get repairs done at reasonable rates. For example, a 1998 Buick LeSabre with a bad engine would be accepted because we are able to fix this kind of problem for a reasonable amount. A 1998 Ford Windstar with a bad transmission would not be accepted because the cost of transmission replacement exceeds the value of the vehicle. In can be difficult for the average consumer to know what does and does not work for us. In any case, please call and ask if you are inclined to donate at all.

Q. What about classic, collectible, luxury, or special interest cars?

Yes, these cars are acceptable for donation. Even if your car is not suitable for use by a low-income person, we welcome your donation. These cars are often sold on the internet to the highest bidder. Your tax deduction is then equal to whatever we sell the car for-regardless of how much we spend making the vehicle ready for sale. Your tax deduction is equal to the gross proceeds of the sale. While your car may not end up being driven by a low-income person, the funds we realize from such a sale often help us place a number of people in reliable cars. Again, please feel free to call and ask.

Q. How does the donation process work?

Donating is easy. Simply bring the car, the keys, the title, and the lien release (if you have one) to our office. The paperwork takes about ten minutes.

Q. Can you come and get my car?

Yes, in most cases we can within reason. Obviously, if the car is in Hawaii, it may be more difficult. If the car does not run, we may be able to have it towed.

Q. What documentation will I receive for my taxes?

You will receive a statement of use contemporaneous with your donation telling you what we will do with the car, a donation receipt, IRS Form 1098-C Copies B and C, IRS Instructions for Form 1098-C, and IRS Instructions for Form 8283 for filing a non-cash charitable contribution.

Q. When will I be able to drop insurance on my car?

You can discontinue insurance the minute we sign the title. Our insurance will cover the car from that point on. Once we have signed the title, all liability and obligation on your part stops.

Q. Will MVAC transfer the title immediately into their name?

MVAC is a licensed car dealer in the State of Minnesota. We will hold the vehicle for resale and, when we place the vehicle with a customer, we will transfer title into their name, as is required by Minnesota State law under the terms of our Dealer License. We have accepted hundreds of donated vehicles and are very careful about this aspect of our business. You will not have legal problems as a result of your donation.