Featuring Featuring Marian OLQ Students:Marian OLQ Students:

Michelle Austin–WillardMichelle Austin–WillardPaula ClarkPaula ClarkGale DenisGale Denis

Wendy ZabelWendy Zabel

Started three years ago. Accepts all types of vehicles – cars, trucks, boats,

RVs, ATVs, and snowmobiles Modeled after a program in Walworth, Wisconsin Director of Community and Fund Development is

responsible for all aspects of the program. In 2009, $10,000 was collected from vehicle

donations and in 2010, $5,000 was collected A goal of $7,000 has been set for 2011, is this

feasible?

Current Vehicle Donation Program

Economic Issues in Vehicle Donations

Current economic conditions changing trends for donating vehicles◦ People keeping cars and trucks longer◦ More willing to donate recreational vehicles like

boats◦ Donated recreational vehicles are hard to sell◦ Tax law changes of 2005 ◦ Cash for Clunkers in 2009

How can donation plans overcome these challenges?

The Manitowoc County Area

Population – 82,444 Mean age of resident – 38.3 years (state ave -36.0) 16.0% of population is over age 65 (national ave- 12.8%) Cost of living 19.1% lower than the national average

As of 2009 Manitowoc County

State of Wisconsin

United States

Median Household Income

$48,087 $51,763 $52,029

Per Capita Income

$20,285 $21,271 $21,587

Competition Solicitation of used vehicles has become an

increasingly popular means of raising funds, especially for local or regional organizations.

Local Rawhide Competition is far beyond just vehicles.

Charities welcome car donations of almost any vehicle, of any value, running or not.

Third-party broker receive only a percentage of the resale price of the car

Competition Rawhide, a faith-based Residential Care Center

(RCC) in Wisconsin for at-risk teenage boys. Sales of donated vehicles and other items both at

wholesale dealer auctions and eBay Their website walks the donor through the process

with a detailed list of requirements and forms that need to be completed and providing samples of the forms.

Rawhide has a qualified, professional sales team that is devoted to bringing quality vehicles at competitive prices

Tax Issues Tax law changes have led to decreases throughout the

country in vehicle donations. One report states, “nationwide, the IRS reported car donations dropped by almost 68 percent in 2005, from nearly 1 million donations in 2004 to 311,451

Tax issues that the donor needs to consider before donating:◦ laws were changed in limiting the donor's used car donation tax deduction to

the amount the selected charity ends up selling the car for .◦ If the car is valued at $5,000 or more there will need to be an independent

appraisal and complete the appropriate part of the IRS.◦ under $5,000, use either Kelley Blue Book or a guide from NADA to

determine the current market value

Wisconsin DOT Anyone who sells up to five vehicles in

Wisconsin must have ◦ A Wisconsin dealer license. ◦ A permanent business with office space and

display lot. ◦ Zoning and permits to sell◦ Sales tax permit◦ $50k surety bond◦ Licensed sales person◦ A business sign and posted hours. ◦ Agreement with service facility◦ ect.

Wisconsin DNR Anyone engaged in the business of selling

a Boat, ATV or Snowmobile must have:

◦ A Commercial Boat certificate and ability to create plaques with registration numbers.

◦ A Commercial ATV certificate. ◦ A Commercial Snowmobile certificate.

The SurveyThe participant total was 104 previous donors of Holy

Family Memorial Hospital

◦ 1.5% have donated a vehicle to a charity in the past

◦ 82.4% knew HFM accepted autos, boats, RV’s, snowmobiles, campers, & ATV

◦ 71.2% recognize that tax benefits are available for vehicle donations

◦ 37.5% were aware of where funds were applied at HFM

◦ 1% of the donors have a vehicle to donate at the current time

◦ 19.8% of individuals indicated they would be willing to donate a vehicle in the future

ObservationsObservations Update brochure

◦ Add a picture of a car.◦ Survey results show that most people refer to cars

when thinking of donating a vehicle. Create a policy and procedures for Vehicle Donation

Program◦ Decrease risk to HFM by determining up front what

type and condition of vehicle will be accepted into VDP.

Only 1% of people surveyed have a vehicle that that they would be willing to donate at this time◦ HFM will want to keep this in mind when determining

the future of the VDP.

Recommendations Link specific community events to the funds

raised by the vehicle donation program.◦ Example: Host an camp for Manitowoc area children

with asthma. Insight more community awareness of the VDP.

◦ Example: Use area business partnerships to link the VDP information to their websites or storefronts.

◦ Make the link on HFM’s website more noticeable to draw more attention to it.

◦ Refer to the VDP at HFM’s other fund raising events.

Recommendations- If HFM chooses to proceed with their own VDP

Need to apply for and obtain a dealer license. Increase insurance needs to include having

vehicles onsite. Partner with local technical schools that have

Mechanic/Vehicle Repair programs.◦ This could improve the condition of donated

vehicles which could increase sale price.◦ Research indicates there are area schools that

would be interested in this. However, there are stipulations on the age and kind of vehicle they will work on.

Recommendations- If HFM chooses to proceed with their own VDP

cont. To avoid dealer licensing and increasing insurance

coverage we recommend: ◦ Partnering with a dealer who is willing to take the

donated vehicles onto their property, make the sale and send the proceeds to HFM. HFM already has an established partnership with

Peitroske GM in Manitowoc. Would they be willing to do this?

◦ Partner with an auction house who is willing to take the donated vehicles onto their property, make the sale and send the proceeds to HFM. Research lead us to Fox Valley Auto Auction in De Pere.

They have experience with vehicle donation programs They will pick up vehicles. Their commission includes transportation and sale of

vehicle.

Recommendations- If HFM chooses not to proceed with their own VDP Become a listed charity on one or all of the

online vehicle donation programs that we researched.◦ Each program is already established and they

take care of every aspect of vehicle donation.◦ HFM would only need to wait for a donation check

to be mailed to them.◦ http://www.donatecarusa.com ◦ http://www.cars4causes.net/home-b ◦ http://www.donateforcharity.com/Wisconsin

ReferencesArticlesBase.com. (2008, August 19). 10 best charity car donation tax tips . Retrieved March 27, 2011 from

http://www.articlesbase.com/taxes-articles/10-best-charity-car-donation-tax-deduction-tips-527257.html#ixzz1HorbYXViCars 4 Causes. (2011). Retrieved March 30, 2011 from

http://www.cars4causes.net/donate-car-wisconsinCouncil of Better Business Bureaus, Inc. , . (2004, Feb 09). Charitable donations of

automobiles, cars and vehicles. Retrieved March 27, 2011 from http://www.bbb.org/us/Car-Auto-DonationsCensus. (2011). Retrieved on March 30, 2011 from www.census.gov Donate a car in Wisconsin. (2011). Retrieved on March 30, 2011 from http://www.donateforcharity.com/wisconsin.html Donate a car USA. (2011). Retrieved on March 30, 2011 from http://www.donatecarusa.com/ Fox valley auto auction. (2011). Retrieved on March 30, 2011 from

http://www.foxvalleyautoauction.net/ Holy Family Memorial Hospital Community Benefit Report, 2009.Hrywna, M., Car Donations Continue To Stall, The NonProfit Times, March 15, 2011.

Retrieved March 29, 2011 from www.nptimes.com/11Mar/03152011cover1.htmlManitowoc County. (2011). Retrieved on March 30, 2011 from www.city-data.com/county/Manitowoc_County Meyer, P.J., (September 17, 2008). From the donor’s perspective: why some fundraisers

succeed while others fail. Retrieved March 20, 2011 from www.articlesbase.com/print/ PRWEB. (2010, August 03). Tax relief in august - donate cars now for a deduction on

2010 tax return. Retrieved March 27, 2011 from http://www.prweb.com/releases/2010/08/prweb4321554.htmRawhide, INC. (2011). Donate your car, boat, rv, motor home, and more. Retrieved March

27, 2011 from http://www.rawhide.org/home/home.aspxSurveyMonkey. (2011). Holy Family Memorial Hospital Vehicle Donations. Retrieved

April 13, 2011 from http://surveymonkey.com/MySurveys.aspxTaschler, J. Charities Worry Car Donations Will Go Clunk, Journal Sentinel, August 20,

2009. Retrieved March 30, 2011 from www.printhis.clickability.com/pt/cpt?expire=&title+Charities+worry+car+donationWisconsin Department of Transportation. (2008). Retail dealer license. Retrieved March 29, 2011 from

http://www.dot.wisconsin.gov/business/dealers/licenses/applyretail.htm Wisconsin Department of Natural Resources. (2011). Registration and titling. Retrieved

March 29, 2011 from http://www.dnr.state.wi.us/org/caer/cs/RegistrationAndTitling.html