IRS Changes May Dent Ministries' Car-Donation Programs
New deduction rules dump Blue Book for actual sales value. That could discourage donors.
By Rob Moll | posted 12/01/2004 12:00AM

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Donors whose cars are used, instead of sold, are allowed to take the Blue Book value. Because Wycliffe Bible Translators gives all of its cars to missionaries on furlough in the United States, they expect an increase in donations as donors choose to drop their car off with Wycliffe where they are guaranteed the Blue Book value. Fred West, director of Wycliffe's program, says while many aspects of the change are still being worked out, he expects better-quality cars. "I think it will help us."
In response, CARS and Habitat are working on getting the best value they can when selling donated cars. "We are working with a partner that has an extensive network of recyclers, salvage auctions, as well as running auctions that we'll be able to sell our cars through, and as a result be able to maximize the value of the donation for any given car," says Habitat's Kurland. CARS has begun selling cars on eBay to see if the auction site will earn them more money.
Meanwhile, ministries are trying to focus on the purpose of the donation rather than the tax break. "We're focusing our message around the importance of the donation, in terms of serving Habitat's mission," says Kurland. Some nonprofits are telling potential donors to donate now, says Krooswyk. That's not the right approach, he says. "People donate because they believe in what we do."
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Related Elsewhere:
For an overview of Willow Creek's CARS program and an article about it, including details of the IRS changes, see their website.
IRS rules regulating itemized donations are available on this IRS FAQ page.
The Salvation Army has more information about its car donation program.
Habitat for Humanity's car donation program, Cars for Homes, has more information about donating a car to Habitat.
Wycliffe Bible Translators has more information about its car donation program.