Frequently Asked Questions
- How do I donate a car?
- What is the GOOD NEWS MOUNTAINEER GARAGE?
- Do I have any liability for my car after it's donated?
- What are the tax benefits of donating a car to the Good News Mountaineer
Garage?
- I thought the tax law changed -- can I still get a deduction for a car donation?
- Does the Good News Mountaineer Garage use all the donated cars for the low income car ownership program?
- Is there much paper work involved?
- How do I get a car?
- How can I find our more about this program?
- This program is a great idea. Is there any other way that I can help?
1. How do I donate a car?
Call 1-866-GIVE CAR (448-3227) or return to our GoodNewsMountatineerGarage.com website and fill out a donor form. We'll get in touch with you to discuss your donation and make arrangements for pick up or delivery.
2. What is the GOOD NEWS MOUNTAINEER GARAGE?
A non profit corporation started by a group of West Virginians who wanted to help families with low incomes get to work. They realized that many of our state's poor can't take advantage of job opportunities, employment training, health care services or educational opportunities because they don't have a car. The Good News Mountaineer Garage is looking for good used cars. The cars are repaired by qualified mechanics and provided to low income families for $1. Families must be referred by the WV Department of Health and Human Resources.
3. Do I have any liability for my car after it's donated?
NO. You sign the title over to the Good News Mountaineer Garage when we pick up the vehicle. From that moment on, the car is our responsibility. We are a licensed used car dealer and will put dealer's plates on the car to transport it. We do not give the family the car until the repairs are done and they provide us with proof of insurance.
Back to TOP
4. What are the tax benefits of donating a car to the Good News Mountaineer Garage?
If your car can be repaired and provided to a family you can deduct the fair market value as a charitable contribution provided you file an itemized federal income tax return (See the pdf file IRS Bulletin 2005-25). West Virginia residents may also be able to receive a state tax credit. GNMG receives a limited number of state tax credits so be sure to ask if they are available. If you have specific questions about how a car donation will affect your tax liability, you should consult an accountant or other tax professional. Tax information is also available at www.irs.gov.
5. I thought the tax law changed -- can I still get a deduction for a car donation?
The tax law did change. You may have heard that tax deductions for cars donated to charities are no longer allowed. Not true. The deduction will continue. However the method of calculating the deduction has changed. Effective January 1, 2005, the IRS issued new rules regarding tax deductions for vehicles donated to charities. Those rules limited the amount taxpayers can deduct to the amount the vehicle is sold for.
`
The IRS made an exception for charities that use the vehicles rather than sell them and specifically exempted low-income car ownership programs. IRS Bulletin 2005-25 So if you donate your vehicle to the Good News Mountaineer Garage and we can recycle it to a low income family, you can still deduct the fair market value.
6. Does the Good News Mountaineer Garage use all the donated cars for the low income car ownership program?
Not all cars can be recycled to low income families. However our mission is to use as many cars as possible as "program cars." GNMG is currently using 65-70% of the donated vehicles for the low income car ownership program. We will notify you within 30 days whether your car is a program car. To determine fair market value you may want to consult Kelly Blue Book or NADA Guides. If the car is worth more than $5000, you will need to get an independent appraisal. Refer to IRS Publication 561 - Determining the Value of Donated Property
Luxury cars or sports cars may be too expensive to maintain and operate for a family. Those cars are sold and the donor can deduct the sale price. GNMG aggressively markets those cars to get the Fair Market Value, usually selling them on eBay. We use 100% of the proceeds to operate our program.
Also it is not always practical for us to repair a car due to its age and condition. Those cars will be sold at public auction or salvage and the money put back into our program so we can repair more vehicles. The donor may deduct what the car sells for. If greater than $500, GNMG is required to provide Form 1098-C which the donor must attach to their tax return. The IRS requires the donor's social security number to process this form.
Back to TOP
7. Is there much paper work involved?
Not really. We will provide you with a statement verifying your contribution for federal tax purposes, and an IRS form 1098-C. There is a little more paper work involved for the state tax credit but GNMG staff will send you the documentation you need.
8. How do I get a car?
The Good News Mountaineer Garage receives funding from the West Virginia Department of Health and Human Resources to provide vehicles to families with children who:
· Are receiving a Temporary Assistance to Needy Families (TANF) check from WV DHHR. Families receiving food stamps and/or Medicaid only will not qualify.
· Are actively participating in their welfare to work program
· Have no other means of transportation available
Eligible persons must be referred by their DHHR caseworkers before GNMG can assign a vehicle to them.
Online applications are taken at the DHHR Website (see the sidebar).
GNMG has also provided vehicles to families through the Ways to Work, a low interest loan program for working families. That program is currently on hold.
9. How can I find our more about this program?
Give us a call at 1-866-GIVE CAR.
10. This program is a great idea. Is there any other way that I can help?
Sure. There are lots of ways you can help. Here are just a few suggestions.
** WAYS YOU CAN HELP**
