Posts Tagged ‘charity’

Car Donation Charity Founder Admits to Fraud

Monday, August 16th, 2010

After pocketing over $2 million from car donations, Shoba Bakhsh, founder of “Hope for the Disabled Kids, Inc.,” has plead guilty on the charges placed against her. This is in line with the State Attorney General’s efforts to crack down on fraudulent car donation charities.

Bakhsh was charged with lying to donors and misusing the funds for her own family and uses. Since the lawsuit, her company has been shut down. In the time it was operating, it accepted thousands of cars generating over 2 million dollars. The company operated eight years, and not a penny was spent on the charitable organizations it claimed to represent for the last two. Although, because Bakhsh destroyed all the records from the previous years, there is no telling if anything ever went to the charities.

As Attorney General Cuomo stated, “This individual manipulated donors and exploited children with serious medical needs in order to enrich herself and her family. As a result of her actions, millions of dollars that should have gone to help disabled children were instead spent on department store bills and real estate. As our investigation continues, my office encourages New Yorkers to be generous and informed donors.”

When you donate a car to charity, do yourself a favor and do the research. You want to make sure your money goes to good use, and the one sure way to do that is to pick a great company to complete the transaction for you.

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Car Donations In Any Condition

Thursday, July 29th, 2010

A car doesn’t have to be in working condition to be a valid donation. In fact, you can donate a car that doesn’t seem to have any redeemable value at all. There is even a special occasion when someone will make sure the vehicle never runs again before trying to sell it. The resulting shape and state of these vehicles has been called “art” by some and “cubes” by others.


While some charities use a car donation as transportation within their own organization and others fix up the vehicles to sell them at auction, these options just aren’t available for vehicles that have been – in the best sense of the phrase – run into the ground. That doesn’t mean they are completely worthless, though. In fact, up in Winnipeg there is currently a program going on in which the Habitat for Humanity is benefiting from cars that have a certain “boxy” theme to them.

In an article in the Winnipeg Free Press they discuss the collaboration between Habitat for Humanity and Urbanmine – a metal recycler. This car donation program will give the proceeds from the recycled car to Habitat, which will then used those funds to help with the construction of new homes. This is just one of the many examples of people using charitable car donations to make a difference wherever they can. In this case, there are two distinct benefits. One, the Habitat for Humanity will receive some very important funding, and two, the recycling process will remove old clunkers from the road and make sure they don’t just waste away in a landfill.

No matter how attached you may be to your old car, there comes a time when you just have to let it go. You may not be fond of the idea that your faithful car or truck is headed toward a temporary career as “modern art” but the money made from recycling the steel and other components in the car can really help out a worthy organization.

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10 Frequently Asked Questions About Donating A Car

Thursday, July 22nd, 2010

If this is the first time you are taking the leap and donating a car to charity, then you probably have a few questions. Hopefully these answers will help you feel easier and understand the process behind car donations.

1. Can I still donate a car that hasn’t worked in years?

  • Almost always. If your car is so old that it would cost more to tow than the value it would give the charity, then chances are it will not be accepted.

2. I get a tax deduction right? How much is that deduction?

  • You can claim the value of your donated car up to $500. Or, if we can sell it for more than that, they you can use our receipt to claim that amount.

3. I don’t have the title to my car, can I still donate a car?

  • This depends on your situation. If you do not have your title, then contact us for the specifics.

4. Will my car be sold for parts or donated whole?

  • This depends on the condition the car is in. Regardless, when you donate a car to charity, you still are doing a good thing.

5. When you pick up my car, do I need to be home?

  • No. If you can’t be home, then just make sure that the keys and title are available in the car. Make sure you don’t leave anything personal in the car.

6. Do I have to pay for towing?

  • No

7. The owner of the car passed away. Can we donate for the deceased?

  • If you have a death certificate and the documentation saying you inherited the belongings, then we can pick up the car.

8. I saw an abandoned car, can I donate it?

  • Unfortunately, no. In this case, you would need to contact a junkyard.

9. What do I do with the license plate of the car?

  • Depending on the state where you live, usually you need to return the plate to the DMV. Some states require that the plate stay on the vehicle. Contact us for more details on your individual situation.

10. What should I do if there is a problem after I have donated a car to charity?

  • We accept all responsibility for your car after it has been picked up. However, if you have any previous fines, you are responsible for them.

Hopefully these answers help you in your decision, and make the process a little easier.

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Choosing A Car Donation Charity

Wednesday, May 19th, 2010

In the car donation business, a few charities are, unfortunately, less than stellar. In the news recently, you may have heard about Cars 4 Causes®, which is currently undergoing a lawsuit for allegedly failing to pay the funds owed to the fundraiser. You can read about the lawsuit here, but here is the short version of what happened:

  • Cars 4 Causes hired Charity Development, LLC to handle the logistics of car donations. Charity Development handles the repair, storage and selling of the cars given to Cars 4 Causes, and Charity Development in turn gives Cars 4 Causes the money.
  • Charity Development claims that they have been delivering more proceeds to Cars 4 Causes than the company has actually donated to charities.
  • Charity Development asserts that Cars 4 Causes is only giving about 16% of the proceeds to the designated charities, while they are spending the rest on their own internal overhead and other programs.

When you want to donate a car to charity, make sure you choose a reputable company that will do its part of the bargain. Make sure you research the charity company online and find out everything you can about them. If they are reputable, then they will not have anything to hide.

At 1800CarDonations.org, we care just as much about your charity car donation as you do. Make sure your donation goes to people in need, and make sure you choose a company that can help your donation make a difference.

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10 Reasons To Donate A Car

Friday, May 7th, 2010

There has been a lot of talk about car donations to charity, and many people have discovered that this really is a great way to get rid of that old clunker while doing something good for the community or a favorite charitable organization. Everyone seems to have a different reason for donating a car, though. Here are 10 of the best reasons (in no particular order) to consider this as a final option for your vehicle.

  1. The Tax Deduction – A car donation can lead to fairly substantial tax benefits. Every year, hundreds of thousands of people save a lot of money on their taxes because of this deduction.
  2. Help a Family in Need – There are a lot of low income families that could use a working vehicle. It may not be the newest, sweetest thing on the road, but it will get them from place to place, which can be priceless.
  3. Contribute to a Favorite Charity – Charitable organizations need your help. If you have a favorite organization that supports something you believe in, this could be a great way to lend a hand.
  4. Provide the Charity with a Working Vehicle – Sometimes charities need more than money. Sometimes they can put your car straight to use within the organization.
  5. Stop Making Useless Insurance Payments – Why keep paying insurance on that clunker when you never use it? You can easily eliminate this burden.
  6. Stop Making Repairs on Clunkers – At what point have you put more money into your vehicle than it is worth? Donate the car and stop the money drain.
  7. Stop Feeling Unsafe in Your Own Car – Have you ever driven down the road and felt sure that the axel was about to drop out of the car? It’s time to get rid of it.
  8. Reduce Pollution – Those old cars weren’t the most environmentally friendly vehicles around. Donating it will get it off the road and reduce your carbon footprint.
  9. Recycling Potential – Is your car completely unusable? It can always be recycled and put to use in a different way.
  10. Feel Good About Something – Whatever other monetary benefits are involved with this process, you can walk away from your car knowing you’ve done something good.

There are many other good reasons to donate your car to charity, just take some time to consider your options and evaluate your vehicle. Is it doing you any good? Could it do some good for someone else? Car donations may be the simplest, most effective way to deal with those old vehicles.

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IRS Rules For Charity Car Donations

Monday, April 26th, 2010

One of the many benefits of donating a car to charity is the opportunity to take a significant tax deduction. However, in order to get the best tax break possible, it is very important that you follow all the rules and suggestions laid out by the IRS. This way you can receive your deduction without incurring too much unwanted interest from the Internal Revenue Service.

A few years ago the rules changed regarding the amount you can claim for a donation. Now, the amount you can deduct is based on the fair market value of the car, unless that value is over a certain amount. You can find more details about these deductions on the IRS page.

The IRS, however, has made a number of suggestions to make this process easier. They recommend:

Itemizing Your Deduction

Often, tax payers don’t itemize their deductions because it is so much easier to take the standard deduction. If, however, you are planning to claim a car donation, you must take the time to fully itemize your tax deductions.

Calculating/Deducting the Fair Market Value

Before you do your taxes, you are going to have to figure out the actual value of the vehicle. This can be done with many of the buying guides on the market, but be sure to take mileage, condition, and other factors into consideration. You are allowed to deduct the fair market value of the vehicle, up to a certain amount. Remember, if that value exceeds that number, then the deduction should be kept to the amount of the gross proceeds.

Document Everything

It’s no secret that the IRS is going to want proof of all your activities. That means you will need to have all the proper records and information ready for them. You will receive a receipt that shows your donation, and you will need to hang on to any other related documents as well.

Donating your car to charity isn’t a difficult process. Just make sure that you follow these rules and suggestions to maximize your deduction and get as much value out of your vehicle as possible.

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