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Car Donations

  • 1.  Car Donations

    Posted 07-15-2019 11:01 AM
    You will want to look at the gift acceptance policies at the download site and check the various table of contents to see who might be addressing these. I have found, however, that a thorough review of both IRS Publications on this topic (4302 & 4303) do a phenomenal job of laying out the particulars from both a donor and donee perspective. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 11:49 AM Forrest, Aaron <aaron.forrest@rochester.edu> wrote: > Hello Friends! > > > > For those organizations that accept vehicle donations, do you have a > procedure you can share? I’ve never been down that road. I have a general > idea from google but want to make sure I’m not missing any steps. Thanks! > > > > Aaron > > > > Aaron Forrest CPA > > Senior Director Gift and Donor Services > > University of Rochester Office of Advancement > > Larry and Cindy Bloch Alumni and Advancement Center > > 300 East River Road > > Rochester NY 14627 > > Office 585.275.2799 / Fax 585-273-4558 > > Email aaron.forrest@rochester.edu > > > > [image: Description: Description: Description: > cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> > > P Please consider the environment before printing this email. > > Confidentiality Notice: This message, including attachments may contain > confidential information. Any unauthorized use, disclosure or distribution > is prohibited. > > >


  • 2.  Re: Car Donations

    Posted 07-15-2019 11:31 AM
      |   view attached
    For those of you considering using a third-party, you may want to be mindful of some IRS concerns. Please see the attached. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 12:18 PM Rose Dixon < 00000038b5818fff-dmarc-request@listserv.fundsvcs.org> wrote: > Last year we received $500k from car donations. We have a few different > organizations that we work with – but we don’t really do any work! > > > > The donations are from the companies that handle the pickup and resale of > cars, we then get a check from them with a list of names/addresses of the > folks who donated their cars. The company gets the hard credit and the > person who donated the car gets a soft credit from us (they get their tax > receipt from the company). > > > > Rose > > > > [image: Semper Fi Fund] > > > > www.semperfifund.org > > *Rose Dixon* > > Deputy | Development Operations | Semper Fi Fund > > > > *M: *617.413.9537 > > *E: *rose.dixon@semperfifund.org > > [image: facebook] <https://www.facebook.com/semperfifund> > > [image: https://i.imgur.com/yzUqE5h.png] > <https://www.linkedin.com/company/injured-marine-semper-fi-fund/> > > [image: twitter] <https://www.twitter.com/semperfifund> > > [image: instagram] <https://www.instagram.com/semperfifund> > > > > Donate <https://semperfifund.org/donate> > > > > > > *From: *"fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> > on behalf of "Forrest, Aaron" <aaron.forrest@ROCHESTER.EDU> > *Reply-To: *"fundsvcs@listserv.fundsvcs.org" < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> > *Date: *Monday, July 15, 2019 at 3:11 PM > *To: *"fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> > *Subject: *Re: [FUNDSVCS] Car Donations > > > > Thanks! I’ll take a look! > > > > Aaron > > > > Aaron Forrest CPA > > Senior Director Gift and Donor Services > > University of Rochester Office of Advancement > > Larry and Cindy Bloch Alumni and Advancement Center > > 300 East River Road > > Rochester NY 14627 > > Office 585.275.2799 / Fax 585-273-4558 > > Email aaron.forrest@rochester.edu > > > > [image: Description: Description: Description: > cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> > > P Please consider the environment before printing this email. > > Confidentiality Notice: This message, including attachments may contain > confidential information. Any unauthorized use, disclosure or distribution > is prohibited. > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor > *Sent:* Monday, July 15, 2019 3:01 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] Car Donations > > > > You will want to look at the gift acceptance policies at the download site > and check the various table of contents to see who might be addressing > these. I have found, however, that a thorough review of both IRS > Publications on this topic (4302 & 4303) do a phenomenal job of laying out > the particulars from both a donor and donee perspective. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Mon, Jul 15, 2019 at 11:49 AM Forrest, Aaron < > aaron.forrest@rochester.edu> wrote: > > Hello Friends! > > > > For those organizations that accept vehicle donations, do you have a > procedure you can share? I’ve never been down that road. I have a general > idea from google but want to make sure I’m not missing any steps. Thanks! > > > > Aaron > > > > Aaron Forrest CPA > > Senior Director Gift and Donor Services > > University of Rochester Office of Advancement > > Larry and Cindy Bloch Alumni and Advancement Center > > 300 East River Road > > Rochester NY 14627 > > Office 585.275.2799 / Fax 585-273-4558 > > Email aaron.forrest@rochester.edu > > > > [image: Description: Description: Description: > cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> > > P Please consider the environment before printing this email. > > Confidentiality Notice: This message, including attachments may contain > confidential information. Any unauthorized use, disclosure or distribution > is prohibited. > > > > > ---------- > This message may contain Semper Fi Fund Privileged/Proprietary > information. If this email is not intended for you, or you are not > responsible for delivery of this email message to the addressee, do not > keep, copy, or deliver this email message to anyone. Please destroy this > email in its entirety after notifying the sender by reply email. Your > cooperation is appreciated. >

    Attachment(s)

    pdf
    irs used car donation memorandum.pdf   4 KB 1 version


  • 3.  Re: Car Donations

    Posted 07-15-2019 11:36 AM
    The article refers to anyone marketing these. The first paragraph specifically talks also about the charity themselves. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 12:33 PM Rose Dixon < 00000038b5818fff-dmarc-request@listserv.fundsvcs.org> wrote: > John, I don't know if this makes a difference, the the document states > "for profit companies" - the ones that we receive funds from are > non-profits. > > Get Outlook for Android <https://aka.ms/ghei36> > > ------------------------------ > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of John Taylor < > johntaylorconsulting@GMAIL.COM> > *Sent:* Monday, July 15, 2019 3:30:58 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] Car Donations > > For those of you considering using a third-party, you may want to be > mindful of some IRS concerns. Please see the attached. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Mon, Jul 15, 2019 at 12:18 PM Rose Dixon < > 00000038b5818fff-dmarc-request@listserv.fundsvcs.org> wrote: > >> Last year we received $500k from car donations. We have a few different >> organizations that we work with – but we don’t really do any work! >> >> >> >> The donations are from the companies that handle the pickup and resale of >> cars, we then get a check from them with a list of names/addresses of the >> folks who donated their cars. The company gets the hard credit and the >> person who donated the car gets a soft credit from us (they get their tax >> receipt from the company). >> >> >> >> Rose >> >> >> >> [image: Semper Fi Fund] >> >> >> >> www.semperfifund.org >> >> *Rose Dixon* >> >> Deputy | Development Operations | Semper Fi Fund >> >> >> >> *M: *617.413.9537 >> >> *E: *rose.dixon@semperfifund.org >> >> [image: facebook] <https://www.facebook.com/semperfifund> >> >> [image: https://i.imgur.com/yzUqE5h.png] >> <https://www.linkedin.com/company/injured-marine-semper-fi-fund/> >> >> [image: twitter] <https://www.twitter.com/semperfifund> >> >> [image: instagram] <https://www.instagram.com/semperfifund> >> >> >> >> Donate <https://semperfifund.org/donate> >> >> >> >> >> >> *From: *"fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> >> on behalf of "Forrest, Aaron" <aaron.forrest@ROCHESTER.EDU> >> *Reply-To: *"fundsvcs@listserv.fundsvcs.org" < >> FUNDSVCS@LISTSERV.FUNDSVCS.ORG> >> *Date: *Monday, July 15, 2019 at 3:11 PM >> *To: *"fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> >> *Subject: *Re: [FUNDSVCS] Car Donations >> >> >> >> Thanks! I’ll take a look! >> >> >> >> Aaron >> >> >> >> Aaron Forrest CPA >> >> Senior Director Gift and Donor Services >> >> University of Rochester Office of Advancement >> >> Larry and Cindy Bloch Alumni and Advancement Center >> >> 300 East River Road >> >> Rochester NY 14627 >> >> Office 585.275.2799 / Fax 585-273-4558 >> >> Email aaron.forrest@rochester.edu >> >> >> >> [image: Description: Description: Description: >> cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> >> >> P Please consider the environment before printing this email. >> >> Confidentiality Notice: This message, including attachments may contain >> confidential information. Any unauthorized use, disclosure or distribution >> is prohibited. >> >> >> >> *From:* Advancement Services Discussion List < >> FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor >> *Sent:* Monday, July 15, 2019 3:01 PM >> *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG >> *Subject:* Re: [FUNDSVCS] Car Donations >> >> >> >> You will want to look at the gift acceptance policies at the download >> site and check the various table of contents to see who might be addressing >> these. I have found, however, that a thorough review of both IRS >> Publications on this topic (4302 & 4303) do a phenomenal job of laying out >> the particulars from both a donor and donee perspective. >> >> >> >> John >> >> >> >> John H. Taylor >> >> Principal, John H. Taylor Consulting >> >> 2604 Sevier St. >> >> Durham, NC 27705 >> >> johntaylorconsulting@gmail.com >> >> 919.816.5903 (cell/text) >> >> >> >> Serving the Advancement Community Since 1987 >> >> >> >> >> >> On Mon, Jul 15, 2019 at 11:49 AM Forrest, Aaron < >> aaron.forrest@rochester.edu> wrote: >> >> Hello Friends! >> >> >> >> For those organizations that accept vehicle donations, do you have a >> procedure you can share? I’ve never been down that road. I have a general >> idea from google but want to make sure I’m not missing any steps. Thanks! >> >> >> >> Aaron >> >> >> >> Aaron Forrest CPA >> >> Senior Director Gift and Donor Services >> >> University of Rochester Office of Advancement >> >> Larry and Cindy Bloch Alumni and Advancement Center >> >> 300 East River Road >> >> Rochester NY 14627 >> >> Office 585.275.2799 / Fax 585-273-4558 >> >> Email aaron.forrest@rochester.edu >> >> >> >> [image: Description: Description: Description: >> cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> >> >> P Please consider the environment before printing this email. >> >> Confidentiality Notice: This message, including attachments may contain >> confidential information. Any unauthorized use, disclosure or distribution >> is prohibited. >> >> >> >> >> ---------- >> This message may contain Semper Fi Fund Privileged/Proprietary >> information. If this email is not intended for you, or you are not >> responsible for delivery of this email message to the addressee, do not >> keep, copy, or deliver this email message to anyone. Please destroy this >> email in its entirety after notifying the sender by reply email. Your >> cooperation is appreciated. >> > > ---------- > This message may contain Semper Fi Fund Privileged/Proprietary > information. If this email is not intended for you, or you are not > responsible for delivery of this email message to the addressee, do not > keep, copy, or deliver this email message to anyone. Please destroy this > email in its entirety after notifying the sender by reply email. Your > cooperation is appreciated. >


  • 4.  Car Donations

    Posted 07-15-2019 05:49 PM
    Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I've never been down that road. I have a general idea from google but want to make sure I'm not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited.


  • 5.  Re: Car Donations

    Posted 07-15-2019 06:12 PM
    Thanks! I’ll take a look! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor Sent: Monday, July 15, 2019 3:01 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Car Donations You will want to look at the gift acceptance policies at the download site and check the various table of contents to see who might be addressing these. I have found, however, that a thorough review of both IRS Publications on this topic (4302 & 4303) do a phenomenal job of laying out the particulars from both a donor and donee perspective. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 11:49 AM Forrest, Aaron <aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu>> wrote: Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I’ve never been down that road. I have a general idea from google but want to make sure I’m not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited.


  • 6.  Re: Car Donations

    Posted 07-15-2019 06:18 PM
    Last year we received $500k from car donations. We have a few different organizations that we work with – but we don’t really do any work! The donations are from the companies that handle the pickup and resale of cars, we then get a check from them with a list of names/addresses of the folks who donated their cars. The company gets the hard credit and the person who donated the car gets a soft credit from us (they get their tax receipt from the company). Rose [Semper Fi Fund] www.semperfifund.org<http://www.semperfifund.org> Rose Dixon Deputy | Development Operations | Semper Fi Fund M: 617.413.9537 E: rose.dixon@semperfifund.org<mailto:rose.dixon@semperfifund.org> [facebook]<https://www.facebook.com/semperfifund> [https://i.imgur.com/yzUqE5h.png]<https://www.linkedin.com/company/injured-marine-semper-fi-fund/> [twitter]<https://www.twitter.com/semperfifund> [instagram]<https://www.instagram.com/semperfifund> Donate<https://semperfifund.org/donate> From: "fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of "Forrest, Aaron" <aaron.forrest@ROCHESTER.EDU> Reply-To: "fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Date: Monday, July 15, 2019 at 3:11 PM To: "fundsvcs@listserv.fundsvcs.org" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Car Donations Thanks! I’ll take a look! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor Sent: Monday, July 15, 2019 3:01 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Car Donations You will want to look at the gift acceptance policies at the download site and check the various table of contents to see who might be addressing these. I have found, however, that a thorough review of both IRS Publications on this topic (4302 & 4303) do a phenomenal job of laying out the particulars from both a donor and donee perspective. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 11:49 AM Forrest, Aaron <aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu>> wrote: Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I’ve never been down that road. I have a general idea from google but want to make sure I’m not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. ---------- This message may contain Semper Fi Fund Privileged/Proprietary information. If this email is not intended for you, or you are not responsible for delivery of this email message to the addressee, do not keep, copy, or deliver this email message to anyone. Please destroy this email in its entirety after notifying the sender by reply email. Your cooperation is appreciated.


  • 7.  Re: Car Donations

    Posted 07-15-2019 06:20 PM
    There are a couple gotchas (unless things have changed very recently!). 1. The Form 1098-C that you send to the IRS has to be a hard-copy form obtained from the IRS, and not, for example, a form downloaded and printed. (I think this has to do with optical scanning tolerances, but I'm not certain of that.) 2. While, for most gifts, a "contemporaneous" acknowledgment means provided by the earlier of the date that the taxpayer files their taxes or when their return is do, the 1098-C has to be files within 30 days of the receipt of the boat/plane/automobile (if it is going to be used for the charitable purposes of the recipient) or its sale (if the vehicle is received to be sold). The penalties for missing the deadlines are the same as those for providing a fraudulent receipt and are substantial-in no cases less that the value/proceeds of the gift. So, when putting a program in place, it's good to have everything ready to go in advance (including having the required hard-copy form!). My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 *: 202-633-8754 | *: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Forrest, Aaron Sent: Monday, July 15, 2019 2:49 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Car Donations Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I've never been down that road. I have a general idea from google but want to make sure I'm not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.rochester.edu%2F&data=02%7C01%7CHejnalA%40SI.EDU%7C83d15a14300245eb58d008d709552d45%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C636988133758785530&sdata=q0cRIg8g%2FV4b9Be81IhCHXs4e1MdFdy%2FjlNPISlc6p8%3D&reserved=0> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited.


  • 8.  RE: Re: Car Donations

    Posted 02-11-2021 04:15 PM
    Hi Alan, any insight regarding why there is a penalty if form 1098-C is not submitted within 30 days of "receipt" of the automobile? So if we plan to keep an automobile given to us, we must submit form 1098-C?

    ------------------------------
    Rita S. Williams
    Director of Advancement Services
    High Point University, High Point NC
    rwillia0@highpoint.edu
    ------------------------------

    Original Message


  • 9.  RE: Re: Car Donations

    Posted 02-11-2021 05:08 PM
    I am not Alan - and I am going to guess he cannot read the mind of the IRS :-).  But here's a neat little summary explaining penalties associated with all 1098s:


    And good old H&R Block reminds taxpayers of the 30-day requirement:


    And the latter affirms that the form must be submitted "within 30 days of the vehicle donation or sale."

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 10.  RE: Re: Car Donations

    Posted 02-11-2021 05:16 PM
    Hi Rita,

    There are two different deadlines for acknowledgment using the different copies of 1098-C, The IRS acknowledgment (Copy A) is due on Feb 28 of the following year. The 30-day deadline for acknowledging the contribution to the donor is the one that carries the stiff penalty. However, this penalty is based on "knowingly" failing to furnish an acknowledgement (or offering a fraudulent one)  it is not intended to penalize mistakes or unintentional delays. 

    The reason the penalties exist and are so stiff is because for many years, car donations were a massive tax loophole. You could donate a car and deduct your own assessment of the FMV, say, by using the Kelley Blue Book, even though your car was much less valuable. You might say the car was worth $5k and take the deduction, but the charity might only be able to sell it for $1k. This was very good for donors, while it probably increased the number of cars that got donated, which was good for charities. But it was bad for all the other taxpayers in the country, who were giving large tax deductions to the donor, without getting at least as large a contribution to charitable good. 

    The IRS changed the rules in 2004, iirc, so that there is now a transparent connection between the charity's sales receipt and the donor's deduction. The penalties and tight timeline are in place because otherwise charities could 'forget' to issue receipts to donors, or issue them far too late to be used at tax time, and the donor could then deduct based on their own valuation. To this day, state AGs routinely go after fraudulent or near-fraudulent car donation schemes - though these days the schemes are more focused on orgs that specialize in car donation, and channel as much of the money raised as possible to salaries, and as little as possible to grantmaking to actual charities. 


    Thank you,
    Isaac Shalev
    CRM Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 11.  RE: Re: Car Donations

    Posted 02-12-2021 08:27 AM
    Thank you John, I had actually hit reply intentionally under Alan's comment and that's why I referenced his name. I appreciate your input, and thank you Isaac as well. Great information! Happy Friday!

    ------------------------------
    Rita S. Williams
    Director of Advancement Services
    High Point University, High Point NC
    rwillia0@highpoint.edu
    ------------------------------

    Original Message


  • 12.  RE: Re: Car Donations

    Posted 02-12-2021 08:58 AM

    That's a good summary.  I would only add a couple points.  One is that some tax legislation gets created with a somewhat myopic focus on the matter at hand, without necessarily having in view other analogous matters, like what "contemporaneous" means in other contexts related to written acknowledgments of contributions.  (My favorite is that when the Joint Committee on Taxation required a date of contribution to the record-keeping requirement for cash contributions, they apparently thought-incorrectly-that the date of contribution was already part of the requirements for a written acknowledgment, so they weren't intending to add a requirement, but they nonetheless did.)  It's also possible that the drafters get caught up in the particular issue in view and decide that penalties need to be bigger stronger faster.

     

    Only a tax attorney can probably say for sure, but I would be hesitant to lean too heavily on the "knowingly" language.  The drafters pretty clearly made the penalties for meeting the very short deadline the same as the penalties for fraud.  The IRS can be pretty reasonable, but the tax code does explicitly impose the penalty if the reporting is not timely.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

     




    Original Message


  • 13.  RE: Re: Car Donations

    Posted 02-12-2021 09:07 AM

    I guess that I should also add that the method-of- filing requirements have mellowed a bit over time.  Originally (apparently to facilitate scanning, which required precise printing) you had to file the 1098-C, when you filed it with the IRS, on a paper form actually printed by the IRS (and not, for example, one that you downloaded from the web site and printed).  That was a giant pain, because if you didn't generally receive gifts of motor vehicles and didn't have the current version of the form on hand, just getting the form could eat up a big part of your 30 days.

     

    There is now an online submission option, and, as there were fewer paper forms filed as a result and paper forms were therefore less of a burden, there is now e fillable PDF that you can download, complete, print, and file.  The form has also transitions to a "continuous use" form, rather than one that gets issued every year so you have to get a new form every year.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

     




    Original Message


  • 14.  RE: Re: Car Donations

    Posted 02-12-2021 11:21 AM
    Thanks so much for the additional information Alan!

    ------------------------------
    Rita S. Williams
    Director of Advancement Services
    High Point University, High Point NC
    rwillia0@highpoint.edu
    ------------------------------

    Original Message


  • 15.  Re: Car Donations

    Posted 07-15-2019 06:29 PM
    Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Hejnal, Alan Sent: Monday, July 15, 2019 3:20 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Car Donations There are a couple gotchas (unless things have changed very recently!). 1) The Form 1098-C that you send to the IRS has to be a hard-copy form obtained from the IRS, and not, for example, a form downloaded and printed. (I think this has to do with optical scanning tolerances, but I'm not certain of that.) 2) While, for most gifts, a "contemporaneous" acknowledgment means provided by the earlier of the date that the taxpayer files their taxes or when their return is do, the 1098-C has to be files within 30 days of the receipt of the boat/plane/automobile (if it is going to be used for the charitable purposes of the recipient) or its sale (if the vehicle is received to be sold). The penalties for missing the deadlines are the same as those for providing a fraudulent receipt and are substantial-in no cases less that the value/proceeds of the gift. So, when putting a program in place, it's good to have everything ready to go in advance (including having the required hard-copy form!). My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 *: 202-633-8754 | *: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.si.edu_&d=DwMFAg&c=kbmfwr1Yojg42sGEpaQh5ofMHBeTl9EI2eaqQZhHbOU&r=MraOYpMOnCsIdm9axhPA4iXJhhPExcCA4gBqoRhHvTU&m=KftQpDStugkOtg16X1XPQ9t8FhYaMpWN4MOnZXn9sB0&s=ZYzVSIH4gYLoc1mz2ESYLkfEBXbukmAUNgQl-_OAPRY&e=> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Forrest, Aaron Sent: Monday, July 15, 2019 2:49 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Car Donations Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I've never been down that road. I have a general idea from google but want to make sure I'm not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <https://urldefense.proofpoint.com/v2/url?u=https-3A__nam02.safelinks.protection.outlook.com_-3Furl-3Dhttp-253A-252F-252Fwww.rochester.edu-252F-26data-3D02-257C01-257CHejnalA-2540SI.EDU-257C83d15a14300245eb58d008d709552d45-257C989b5e2a14e44efe93b78cdd5fc5d11c-257C0-257C0-257C636988133758785530-26sdata-3Dq0cRIg8g-252FV4b9Be81IhCHXs4e1MdFdy-252FjlNPISlc6p8-253D-26reserved-3D0&d=DwMFAg&c=kbmfwr1Yojg42sGEpaQh5ofMHBeTl9EI2eaqQZhHbOU&r=MraOYpMOnCsIdm9axhPA4iXJhhPExcCA4gBqoRhHvTU&m=KftQpDStugkOtg16X1XPQ9t8FhYaMpWN4MOnZXn9sB0&s=AphLo61tzdrbitkWxJQDKSy8fli-t0iKPzvsYeNa2X0&e=> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited.


  • 16.  Re: Car Donations

    Posted 07-15-2019 06:31 PM
    Alan, this would be if you were managing this kind of program "in-house" right? We don't do any of that. We wouldn't have the staff to pick up cars all over the country and then sell them, which is why third party organizations (similar to Kars 4 kids) manage the program, take a fee and then donate the rest to us. Get Outlook for Android<https://aka.ms/ghei36> ________________________________ From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of Hejnal, Alan <00000031f8bb5829-dmarc-request@LISTSERV.FUNDSVCS.ORG> Sent: Monday, July 15, 2019 3:19:52 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Car Donations There are a couple gotchas (unless things have changed very recently!). 1. The Form 1098-C that you send to the IRS has to be a hard-copy form obtained from the IRS, and not, for example, a form downloaded and printed. (I think this has to do with optical scanning tolerances, but I’m not certain of that.) 2. While, for most gifts, a “contemporaneous” acknowledgment means provided by the earlier of the date that the taxpayer files their taxes or when their return is do, the 1098-C has to be files within 30 days of the receipt of the boat/plane/automobile (if it is going to be used for the charitable purposes of the recipient) or its sale (if the vehicle is received to be sold). The penalties for missing the deadlines are the same as those for providing a fraudulent receipt and are substantial—in no cases less that the value/proceeds of the gift. So, when putting a program in place, it’s good to have everything ready to go in advance (including having the required hard-copy form!). My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Forrest, Aaron Sent: Monday, July 15, 2019 2:49 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Car Donations Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I’ve never been down that road. I have a general idea from google but want to make sure I’m not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.rochester.edu%2F&data=02%7C01%7CHejnalA%40SI.EDU%7C83d15a14300245eb58d008d709552d45%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C636988133758785530&sdata=q0cRIg8g%2FV4b9Be81IhCHXs4e1MdFdy%2FjlNPISlc6p8%3D&reserved=0> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. ---------- This message may contain Semper Fi Fund Privileged/Proprietary information. If this email is not intended for you, or you are not responsible for delivery of this email message to the addressee, do not keep, copy, or deliver this email message to anyone. Please destroy this email in its entirety after notifying the sender by reply email. Your cooperation is appreciated.


  • 17.  Re: Car Donations

    Posted 07-15-2019 06:33 PM
    John, I don't know if this makes a difference, the the document states "for profit companies" - the ones that we receive funds from are non-profits. Get Outlook for Android<https://aka.ms/ghei36> ________________________________ From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of John Taylor <johntaylorconsulting@GMAIL.COM> Sent: Monday, July 15, 2019 3:30:58 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Car Donations For those of you considering using a third-party, you may want to be mindful of some IRS concerns. Please see the attached. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 12:18 PM Rose Dixon <00000038b5818fff-dmarc-request@listserv.fundsvcs.org<mailto:00000038b5818fff-dmarc-request@listserv.fundsvcs.org>> wrote: Last year we received $500k from car donations. We have a few different organizations that we work with – but we don’t really do any work! The donations are from the companies that handle the pickup and resale of cars, we then get a check from them with a list of names/addresses of the folks who donated their cars. The company gets the hard credit and the person who donated the car gets a soft credit from us (they get their tax receipt from the company). Rose [Semper Fi Fund] www.semperfifund.org<http://www.semperfifund.org> Rose Dixon Deputy | Development Operations | Semper Fi Fund M: 617.413.9537 E: rose.dixon@semperfifund.org<mailto:rose.dixon@semperfifund.org> [facebook]<https://www.facebook.com/semperfifund> [https://i.imgur.com/yzUqE5h.png]<https://www.linkedin.com/company/injured-marine-semper-fi-fund/> [twitter]<https://www.twitter.com/semperfifund> [instagram]<https://www.instagram.com/semperfifund> Donate<https://semperfifund.org/donate> From: "fundsvcs@listserv.fundsvcs.org<mailto:fundsvcs@listserv.fundsvcs.org>" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> on behalf of "Forrest, Aaron" <aaron.forrest@ROCHESTER.EDU<mailto:aaron.forrest@ROCHESTER.EDU>> Reply-To: "fundsvcs@listserv.fundsvcs.org<mailto:fundsvcs@listserv.fundsvcs.org>" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> Date: Monday, July 15, 2019 at 3:11 PM To: "fundsvcs@listserv.fundsvcs.org<mailto:fundsvcs@listserv.fundsvcs.org>" <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> Subject: Re: [FUNDSVCS] Car Donations Thanks! I’ll take a look! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor Sent: Monday, July 15, 2019 3:01 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Car Donations You will want to look at the gift acceptance policies at the download site and check the various table of contents to see who might be addressing these. I have found, however, that a thorough review of both IRS Publications on this topic (4302 & 4303) do a phenomenal job of laying out the particulars from both a donor and donee perspective. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Jul 15, 2019 at 11:49 AM Forrest, Aaron <aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu>> wrote: Hello Friends! For those organizations that accept vehicle donations, do you have a procedure you can share? I’ve never been down that road. I have a general idea from google but want to make sure I’m not missing any steps. Thanks! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. ---------- This message may contain Semper Fi Fund Privileged/Proprietary information. If this email is not intended for you, or you are not responsible for delivery of this email message to the addressee, do not keep, copy, or deliver this email message to anyone. Please destroy this email in its entirety after notifying the sender by reply email. Your cooperation is appreciated. ---------- This message may contain Semper Fi Fund Privileged/Proprietary information. If this email is not intended for you, or you are not responsible for delivery of this email message to the addressee, do not keep, copy, or deliver this email message to anyone. Please destroy this email in its entirety after notifying the sender by reply email. Your cooperation is appreciated.


  • 18.  RE: Car Donations

    Posted 02-11-2021 04:59 PM
    Hi John, we have been gifted a car which we intend to use on campus during an upcoming anniversary celebration, and it will also be used for educational purposes. It will not be used "on the road" and will not be sold. By definition, are we still "operating a vehicle donation program" as described in publication 4302, and required to submit form 1098-C, or is that form only for organizations that either buy and re-sell cars, or have organizations that do it for them? I find the instructions for form 1098-C as well as publication 4302 confusing. Would appreciate any guidance you can provide!

    Thanks,
    Rita Williams

    ------------------------------
    Rita S. Williams
    Director of Advancement Services
    High Point University, High Point NC
    rwillia0@highpoint.edu
    ------------------------------

    Original Message


  • 19.  RE: Car Donations

    Posted 02-11-2021 05:12 PM
    The form is required for any charitable donation of a vehicle - including those that you place into service.  And you likely will also need to complete an 8283 when provided by the donor and indicate the gift was for "related purposes."

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message