Donated 911? Can anyone elaborate?

Doug&Julie · 03-10-2005, 11:27 AM

Not that I'm interested in this car, but can anybody elaborate on this "donated" 911 on eBay?

http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=4534121332&fromMakeTrack=true

It seems like an awefully nice car to "donate"? Why would somebody do this? Is it a straight up donation or do these people sell these cars for a fee and the "fee" goes to charity?

Just curious. Thanks in advance!

creaturecat · 03-10-2005, 11:43 AM

tax receipt

Doug&Julie · 03-10-2005, 11:44 AM

Wouldn't it be worth more as a sale?

84porsche · 84porsche's Garage

It would be worth more as a sale but it was probably someone who doesn't know anything about it and said I have an old car I would like to donate for the tax deduction. The organization received the car and said what an idiot and is selling the car for a chunk of money. I bought my car from someone who bought the car from a VW dealership (took as a trade in on a new Audi) just because of the looks and rarely drove the car, better for me.

smestas · smestas's Garage

Quote:

Originally posted by 84porsche
The organization received the car and said what an idiot and is selling the car for a chunk of money.

You know people sometimes make donations for reasons other then making a buck or a write off.

I highly doubt the charity thought the owner was a "idiot".

Grady Clay · 03-10-2005, 12:14 PM

Doug,

The two reasons for donating a Porsche to a charity are altruism and a tax break. Typically it is some of both.

A few years ago I gave my top end Honda Accord to a charity (Denver Boys & Girls Club.) It was 105K mi, all original paint, and well documented original owner.

This can be very worthwhile if you have significant taxable income, itemize deductions, and can fulfill the other requirements. The possible key is to have multiple respected and irrefutable appraisals with good documentation and carefully document the sale of other similar year and model. It may be beneficial to leave some money on the table to possibly reclaim later.

I am not a CPA or tax attorney and this is not financial, tax, or legal advice. Consult an attorney or tax professional for proper advice.

Best,
Grady

911mot · 911mot's Garage

If it really is for 'charidee' then why does it have a reserve?

widebody911 · widebody911's Garage

There was a local 'car charity' that turned out to not actually be donating anything to any charity; all proceeds got eaten up in 'administrative expenses'.

anthony · 03-10-2005, 01:31 PM

Quote:

Originally posted by Doug&Julie
It seems like an awefully nice car to "donate"? Why would somebody do this? Is it a straight up donation or do these people sell these cars for a fee and the "fee" goes to charity?

A '77 911S with 117K miles is not that big of a donation. What's it worth $10K, max?

Of course the primary motivation for donating something is to support the charity. The tax savings of a write off is never equals the value of the item.

People often donate cars as opposed to cash because they don't want to deal with selling the car. The car could have also been broken when it was donated. Say it needed $4K in transmission work. The seller would take the full value $10K deduction (because the IRS doesn't know the transmission is broken), the charity fixes the transmission and nets $6K. It's a win/win.

jester911 · jester911's Garage

The only non-profit orginization I can personally vouch for is
me

84porsche · 84porsche's Garage

Quote:

Originally posted by smestas
You know people sometimes make donations for reasons other then making a buck or a write off.

I highly doubt the charity thought the owner was a "idiot".

[Rant] I cannot dispute what you are saying but I think a lot of people donate cars for one of the following reasons, to get rid of them because they don't work, they don't want to go through the process of trying to sell or they want the write off. I have done a few tax returns and you won't believe how many people say they donate to a church (up the donations) to help themselves and half of them don't even go to church and give away complete junk and call it a substantial donation. And charities in some cases are bigger crooks than those donating. I am skeptical becuase I have been involved in various organizations and seen how they operate and really believe that if you want to help someone, get out and do something worthwhile. It is however true that one persons junk is another's treasure. [Rant over]

Doug&Julie · 03-11-2005, 04:15 AM

I guess I get it...but I don't. I just can't imagine giving away my Porsche. Of course, it would be nice to be in a position in my life where I COULD give away a Porsche...

ruf-porsche · ruf-porsche's Garage

Did you guys see the 47 pickup the seller has for sale?

If overhaulin would over haul the 47 pickup, I would place a bid on it.

FOOSE me.

wm711 · 03-11-2005, 06:20 AM

it is my understanding 04 was the last year for a 100% donated car tax deductable donation, where the break is allowed for the actual fair market value receipt written by the charity. 05 the deduction is allowed for ONLY what the charity is able to get for the car. lots of donated cars out there as a result of this change.

anthony · 03-11-2005, 06:24 AM

Quote:

Originally posted by Doug&Julie
I guess I get it...but I don't. I just can't imagine giving away my Porsche. Of course, it would be nice to be in a position in my life where I COULD give away a Porsche...

The guy probably also has a new 997 Carrera S and an '89 930 Turbo and a few Ferraris in the garage. The '77 911s was his beater car. Or, the guy passed a way and his wife donated his car.

bandhawk · 03-11-2005, 08:46 AM

A few years ago (when i used to go to church) a guy had donated his old Jaguar for a catholic church to auction it off. The cash from the sale was benefiting the Knights of Columbus or something like that. It was actually in pretty good cosmetic shape. They just left it in the parking lot for people to look at and bid on it over a few weeks. Sooo...it happens. Probably not often, but I've seen it.

jluetjen · jluetjen's Garage

Financially it may not be such a bad deal depending on the doner's financial situation. I'm not tax accountant, but I could picture that if they are in a top income bracket and they did not have a lot of cash available that it might be a good deal. First off I suspect that this was a year-end deal trying to make the donation before the end of the year. Secondly, if the doner would have to liquidate some asset (and pay capital gains or their base tax rate) to make the donation, or give the car that they have on hand. In that case it's a no-brainer. Give the stock or the car? But if the stock is expected to go up in the future, the decision is even clearer. Give the car since it is not one of the "100% original" types which have the highest growth potential.

Eli at Pelican Parts · 03-11-2005, 10:33 AM

Quote:

Originally posted by 911mot
If it really is for 'charidee' then why does it have a reserve?

Took the words right out of my mouth.....

Doug&Julie · 03-11-2005, 11:34 AM

I wonder if they can just sell them like some form of consigment? A "donor" asks the charity to sell the car, the charity takes XX% of the sale price (as "donation"), the "donor" and charity work out a minimum sale price so nobody gets screwed?

The laws of business just seem to go right over my head. That's why I'm a designer...

tt_targa · 03-11-2005, 11:52 AM

In my opinion, donating cars is a scam.

A neighbor worked for a charity that took in donated cars. All her kids and friends were driving the good ones.

Often the charity writes a receipt for high blue book and sells at wholesale.

The seller would have done better for his favorite charity by selling the car on PP and then giving money. This is the no overhead approach.