The well-respected Breast Cancer Analysis Foundation in New York approved article new in 2012: Adopting money through acclimated car donations. It apprenticed with a Costa Mesa-based aggregation – Michael Reese Enterprises – which went on to action cartage account $4.76 actor on the foundation’s behalf.
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But alone $475,624 fabricated its way aback to the alms – 10 percent of absolute revenues.
Operation Gratitude in Encino sends affliction bales blimp with candies and toiletries and hand-written addendum to U.S. aggressive veterans and cadre at home and overseas. It, too, acclimated Michael Reese Enterprises to handle agent donations on its behalf, accumulation revenues of $1.6 million. Of that, alone $233,853 fabricated it aback to the alms – 14.7 percent of the total.
Here in Irvine, a baby nonprofit called Allocution About Curing Autism acclimated Michael Reese to action agent donations account aloof $18,790 – of which $4,626 fabricated it aback to the charity. That was the accomplished percentage, abiding 24.6 percent of the total.
James Neely, admiral of Michael Reese Enterprises, said absorption on percentages is the amiss way to anatomy the issue.
“If I had a action admission account $1 billion and I said I would accord you 10 percent, at aboriginal you ability say no – 10 percent is too low,” Neely told us. “But that’s $100 million. Would you rather accept 10 percent of $1 billion, or 70 percent of $500,000? The acknowledgment is, ‘We will booty that 10 percent.’ ”
In 2010, Americans donated 193,532 cartage to alms and claimed deductions of $389.3 actor on their federal tax returns, according to the Internal Acquirement Service. That’s bottomward acutely from a decade ago, afore the IRS anchored up the rules: In 2000, some 750,000 bodies took a agent donation deduction, blurred their taxes by added than $650 million.
In California, agent donations in 2012 aloft $17.7 actor in the name of nonprofits in California, although the charities got aloof $5.5 actor of that, or 31 percent. That’s a far sorrier assuming than in 2011. Then, absolute acquirement aloft by agent donations was academy – $21.6 actor – and charities got added than bisected the take, at 53.8 percent.
The basal band is that agent donations are one of the best big-ticket means to give. Best of the money generated this way apprehension up in the pockets of middlemen, not in the calmly of charities – a absoluteness that generally eludes donors.
Michael Reese is one of the bigger such companies in the nation. Its alcove in the bazaar is processing a actual ample aggregate of low-value vehicles, which accept a lower return.
All told in 2012, it appear adopting revenues accretion $6.37 actor on account of charities, while the nonprofits got $714,103 of it, or 11.2 percent, according to abstracts aggregate by the California Attorney General.
But Reese’s Neely said those numbers don’t acquaint the accomplished story, and the charities are not complaining.
Vehicle donation is a complicated and time-intensive undertaking, and the charities don’t accept to do any work: They don’t accord with advertising, auto cars, tow companies, repairs, storage, sales or paperwork. Instead, they artlessly appoint companies like his and get the checks.
“That money isn’t activity into my abridged or the charity’s abridged – it’s activity into the advertiser’s pocket,” he said. “It’s the bulk of accomplishing business, and it’s actual costly.”
‘PLEASE DONATE YOUR CAR’
Advertising is capital to active abeyant donors that the alms exists, he said. A 30-second ad on allocution radio runs $700 to $800, and if you buy bristles or six spots a day, that’s $4,000 appropriate there. And the all-over Google and Yahoo banderole ads – Michael Reese’s stock-in-trade – “are very, actual expensive,” costing some $70 to $100 anniversary time a abeyant donor clicks, Neely said.
It’s no admiration that accessible TV and radio stations avowal amid the accomplished allotment in the car donation competition: They don’t accept to pay for announcement because they ascendancy the airwaves. “When you don’t own the airwaves, you accept to pay for it,” Neely said.
Smaller and added localized charities – which can calmly ability out to bounded donors – tend to accept academy allotment as well. “It’s all about conversion,” Neely said. “If you can put a assurance in advanced of your abbey and bodies donate, it’ll bulk you abutting to nothing.
“It’s not that we’re ripping off the charities,” he said. “If anyone is ripping anyone off, it’s Google and Yahoo. You pay for position. It’s very, actual competitive. The added aggregate we appetite to do, the added money we accept to spend. It’s aloof the way the business works.”
At the end of the day, it costs $350 to $400 aloof to get donors in the door, additional towing and accumulator and paperwork. “There’s no way you can accord aback 70 percent to the charity. You can’t. You aloof absolutely can’t,” he said.
And bi-weekly belief such as this one don’t help, he added.
“This business was very, actual altered 10, 15 years ago,” Neely said. “It has afflicted so much. IRS laws changed. Announcement went digital. Competition grew. There are a lot of restrictions and paperwork. It’s labor-intensive.
“But at the end of the day, this is what I do. You accept the tools. You accumulate architecture on it. The alone way for us to survive is to do added volume. We’re attractive at the big volume. It’s bigger at the end of the day for everybody.”
WHY CHARITIES TRY
The above Breast Cancer Analysis Foundation in New York gets the accomplished accessible appraisement from nonprofit babysitter Alms Navigator, with 91 percent of its spending committed to its bulk mission: Funding accurate analysis in a dozen countries. It had revenues of $71.8 actor in the aftermost budgetary year.
The foundation active up with Michael Reese for the aboriginal time, addition it would accord the car donation affair a try, said Lisa Risi, arch operating officer. “We weren’t abiding how it would assignment out, but we absolutely didn’t accept the accommodation to run a affairs like that ourselves, with 25 bodies actuality in New York City,” she said. “Michael Reese was accommodating to turnkey the accomplished thing, and aloof accelerate us a check. That acquainted like article we could manage.”
It was actual cellophane about the actuality that the affairs was an big-ticket one, and that alone a baby bulk would absolutely accomplish it way aback to the charity.
“We looked at the after-effects afterwards a year, and it’s abundant we aloft about a half-million dollars, which adjourned some actual important research,” Risi said. “But in the arrangement of who we are and what we appetite to do, we absitively we weren’t activity to do it again. We’re not activity to say never – but it aloof didn’t feel like a absolute applicable befalling for us appropriate now.”
Michael Reese provided abundant chump account and was compassionate about the decision, she said.
For added charities that stick with it, it may abscess bottomward to “something is bigger than nothing.”
“TACA is a baby civic alignment that currently supports about 40,000 beyond the US active with autism,” Violette Prentice, development administrator with Irvine’s Allocution About Curing Autism, told us by email. “Being a baby alignment we consistently chase for means that donors can abutment our mission and car donations (both through MRE and Car4Causes) are a allotment of the options.
“I accede with you that car donations may not be the best able way to accession funds (as against to artlessly accepting banknote donated), about accepting gone through the car donation action myself with MRE in 2011 (to account TACA), I apperceive that for some supporters it is the best advantage for them.”
GIVE WISELY
Since accommodating deductions accumulate money out of Uncle Sam’s coffers, it behooves anybody to ensure best of it apprehension up in the pockets of charities – back we’re all about advantageous for it.
Find a alms that handles car donations in-house. That cuts out the middle-man and allows the alms to accumulate all the proceeds. If the car runs, drive it to the alms yourself; that’ll save money on auto and towing and potentially accumulator as well.
Most of all, do the paperwork correctly, or access your affairs of an analysis by the IRS.
If you’re asked to leave the “assignment of ownership” amplitude on the donation affidavit bare so they don’t accept to re-title the car, acquisition addition charity. If you don’t formally assurance your car over to the nonprofit, you can be captivated amenable for parking tickets and face accountability if it’s after acclimated to accomplish a crime.
And if you don’t get and save the receipt, you won’t be able to abstract it on Schedule A of your Form 1040.
Breast Cancer Analysis Foundation in New York is demography a new approach. A few years ago, it aloft annihilation online, COO Risi said – and aftermost year, it aloft $2 actor online. It’s spiffing up its web armpit to drive added traffic, and we promised to accommodate the abode here: www.bcrfcure.org.
Image Source: mercurynews.com
tsforza@ocregister.com
Wheels go round
Many nonprofits are jonesing for your car – but agent donations are actual big-ticket to process, and nonprofits usually get aloof a atom of the revenues raised. The boilerplate agent donation attack in California in 2012 alternate aloof 31 percent of revenues aloft to the charity. Actuality are some of the bigger campaigns that acclimated agent donations in 2012; agenda that accessible TV and radio stations usually avowal amid the accomplished returns. They don’t accept to pay for announcement – usually the best big-ticket allotment of the addle – because they ascendancy the airwaves. Smaller and added localized charities that can calmly ability out to donors tend to accept academy allotment as well.
CHARITY
COMMERCIAL FUNDRAISER
TOTAL REVENUES
TO CHARITY
% TO CHARITY
Car Donation Foundation
National Fundraising Management
$3.18 million
$577,784
18.19
KQED NoCal
Charitable Auto Resources
$828,770
$538,701
65
San Diego Sate University
Charitable Auto Resources
$650,759
$412,351
63.4
Prostate Cancer Survivor Project
Just Donated Inc.
$458,091
$74,505
16.3
Southern California Accessible Radio (KPCC)
Charitable Auto Resources
$440,905
$203,111
61.4
Tony Larussa’s Animal Rescue Foundation
Car Donation Services
$207,050
$103,938
50.2
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KCRW Foundation
Charitable Auto Resources
$200,100
$141,479
70.7
Amnesty International of the USA
Public Interest Communications
$300,701
$30,503
10
Independent Charities of America
Advanced Marketing Services
$287,500
$237,332
82.6
APA Family Abutment Services
Center for Car Donations
$268,745
$147,769
55
KVIE Sacramento
Charitable Auto Resources
$221,925
$132,741
59.8
Lindsay Wildlife Museum
Car Donation Services
$195,800
$81,536
41.6
Laura’s House Ladera Ranch
Center for Car Donations
$167,000
$10,707
6.41
Paralyzed Veterans of America
Charitable Auto Resources
$139,971
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$84,382
60.3
Warrior Foundation Freedom Station
Center for Car Donations
$129,800
$35,148
27.1
Breast Cancer Fund
Donate for Charity
$155,365
$88,290
56.8
Keiro Services
Riteway Alms Services
$128,480
$78,825
61.4
KALW San Francisco
Center for Car Donations
$105,500
$74,169
70.3
Big Brothers Big Sisters Bay Area
Able Auto Alms Donation Corp.
$85,615
$15,908
18.6
Alzheimer’s Association LA, Riverside, San Bernardino
Riteway Alms Services
$50,890
$15,275
30
KOCE-TV Foundation
Charitable Auto Resources
$8,875
$5,523
62.23
Source: California Attorney General
Image Source: kqed.org
TIPS: EVERYONE PAYS. GIVE WISELY.
Source: IRS, Alms Navigator, American Institute of Philanthropy
Kqed Car DonationImage Source: kqed.org
Image Source: ytimg.com
Image Source: blogspot.com
Image Source: startgrants.com
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