Vehicle Donation Program FAQs
What is V-DAC?
V-DAC stands for Vehicle Donation to Any Charity, and is a registered fundraising counsel that provides a vehicle donation service. V-DAC was chosen for its ability to provide the simplest, most economical, vehicle donation program for "Car Talk" stations.
Why did Car Talk choose it?
V-DAC delivers the highest rate we found of actual proceeds received by charities--well above the average local program as reported by the California Attorney General's office. The latest report by the Attorney General of California showed that the average local program only yielded 36.7% of gross sale proceeds to charities. In 2003, V-DAC yielded 56% of gross sale proceeds to charities.
V-DAC's contractors are also known and reliable providers. The central charity that V-DAC uses to process donations also handles the Federal Government Workplace Giving campaign for 1,400 independent charities. The firm that handles vehicle pickup, transportation and sale processing is the same firm that handles vehicles for the 10 largest national charity programs and many of the largest insurance companies.
How is this different from similar services?
Most vehicle donation firms would require a separate contract for each station. V-DAC's use of a central charity (that accepts vehicle ownership and forwards the net proceeds to the benefiting nonprofit) allows us to make it simple for stations to participate without contracts, legal fees, or strings attached. We consider this a huge plus.
The use of a separate, central charity also means that tax deductibility is maintained for the donor, while avoiding liability of vehicle ownership for Car Talk or the station.
How does this work for my station's listeners?
Visitors to your station's web site, or the Car Talk site, will click on a Vehicle Donation link or graphic. They will then see a pull-down menu of Car Talk stations. They choose their local station, fill out the online donation form, print and mail the completed forms along with their car titles, and then V-DAC arranges to pick up the car and have it processed.
V-DAC also provides customer assistance, and ensures that the proper rules are followed for tax purposes. There is an 800 number available on the site for the Internet impaired, but we encourage people to use the online program because it is quicker for them -- and cheaper for us.
The service is completely free to donors and stations.
Where does the money go?
The program attempts to use the most efficient contractors, so as much money as possible ends up with your station.
The processing firm sends the net proceeds to the central charity after deducting a $55-fixed handling fee (plus towing and other expenses at actual cost.) The central charity gets a funds-handling fee of 7.5% of the net.
V-DAC and Car Talk combined get a very small fee of not more that 10% of the gross (the actual average is about $35-45 per donation) to cover the costs of administration, Internet, and other support. Then, the station is sent a check for the proceeds, which averages about 56% of the gross.
How much should we expect to receive per vehicle?
The average net per vehicle to charities in 2004 was about $200. The amount you receive will vary by your location (lower in the rust belt, higher in the South) and how successful you are in getting people to donate better vehicles instead of trading them in.
As of May, 2005, the Car Talk Vehicle Donation Program had distributed over $1,000,000 to stations.
How many vehicles do you think will be donated by our listeners?
In the first year of the program, more than 5,000 vehicles were donated through the Car Talk.
Will Tom and Ray be promoting this on the air?
We do expect to promote this service from time to time during "Car Talk," when appropriate. We also expect that Tom and Ray will mention the "Car Talk Vehicle Donation Program" when it makes sense during conversations with callers-if they remember, that is-- and if they aren't too busy trying to make up yet another bogus answer.
What if our station already has a vehicle donation program?
here's no reason you can't use both and take advantage of Car Talk's reach, but if you choose not to, just let us know by e-mailing our Senior Web Lackey Doug Mayer and we'll either remove your station from the pull-down menu or link your station to your existing program. But you may want to check the percentage you're actually getting from your program before you decide.
Do Tom and Ray have promos for stations for this service?
Yes. Car Talk vehicle donation promos are available via the NPR depository. We will be able to customize these promos for stations as requested.
Can I add a link to our web site and promote this locally on our station?
Absolutely. Please link to http://www.v-dac.com/cartalk/org/?id=XXXX with XXXX being your station's call letters. Graphics for the "Car Talk Vehicle Donation Program" are available here [Coming soon-stay tuned]. Remember, any donations you generate from your own listeners will benefit your station, so if you have the web space and airtime, it's a no-lose proposition.
Do I have to use specific language to avoid ticking off the IRS?
Yes. There are only a few key restrictions. Please make sure any and all of your promotional materials meet these requirements.
1. The vehicles are donated to a central charity that sends net proceeds to your station, so you have to refer to donations as "benefiting" your station instead of "to" your station.
2. Do not use the term "retail value." Donors get an itemized tax deduction for the sale price of their vehicles. The IRS has stated that ads that mention "retail value" are potentially deceptive. The Car Talk Vehicle Donation web site has worksheets and links to IRS documents to let donors calculate what their donations are worth.
Will the program pick up any vehicle?
The program accepts any type of vehicle -- cars, trucks, boats and even airplanes -- but not every vehicle. Only vehicles that will cover the cost of processing are accepted. Some vehicles are not worth anything, even to a junkyard, so they are turned down.
How will gift acknowledgments be handled? Will it be the responsibility of the beneficiary station to generate an acknowledgment letter stating tax benefits/consequences?
V-DAC will send out a letter and tax receipt to all donors thanking them for their support. These thank-you letters and tax receipts are sent to donors within a week of vehicle pickup.
Stations have no obligation to send additional information to donors but, of course, you may want to send a thank-you letter or other materials.
Who "owns" the names of donors? Will individual stations receive donor names and contact information for recognition and membership entitlement?
Stations will get full donor contact information in the monthly funds disbursement. Donor names are owned by the central charity that receives the donated vehicles and sends the net proceeds to the designated station. The central charity shares full donor contact information with the designated station. Donor names are kept confidential and are not shared with any other organization.
Can the station offer additional recognition to donors such as membership?
Yes, stations can customize their manner of donor recognition as they want.
From whom will stations receive donor information and any checks--V-DAC, Car Talk, or another party?
Checks and donor information are sent out monthly by the program central charity, which does a similar task for 1,400 charities that participate in the Federal Government Workplace Giving program.
Will individual donors be afforded the option of designating or restricting their auto donation?
Not at this time. Donations will arrive unrestricted.
What's the typical time between the initial donation of the automobile and issuing the check to the beneficiary station?
It usually takes eight to 12 weeks from the start of donation to when funds are disbursed to stations. Stations will get full donor contact information when funds are sent.
Who do I contact if I have more questions?
If you have questions about the details of the vehicle donation service, contact Car Talk's Senior Web Lackey, Doug Mayer at (617) 876-6632 x14.
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