A Case Study

Julia Griffin, Hanover's Town Manager and her husband John Steidl donated a 1994 Honda Accord to Bonnie CLAC in June, 2005. This car was used as a part of Bonnie CLAC's Bridge Program to help one of our clients get to work as they strive to purchase a reliable new car.

Tax Benefits
Before donating their vehicle, Julia and John compared the tax benefit they would receive by donating their car to Bonnie CLAC or another non-profit. They estimated that the car was worth about $800 as a trade-in, with a fair market value of approximately $3,000. An individual who pays a marginal federal tax rate of 30% could receive a benefit equal to $900 if they donated the vehicle to a nonprofit organization that used the car to further their mission. A high income Vermont citizen could receive a tax benefit of $1,000.

If this car had instead been sold at auction, their tax benefit would only have been $240-$320. Because providing cars to qualified low income individuals is an integral part of Bonnie CLAC's mission, this distinction can make a critical difference to prospective donors of usable automobiles, vans, or trucks.

Donating a vehicle to Bonnie CLAC will not only help a local family in need of reliable transportation; it can also help car donors maximize their tax deductions.

People like Julia and John help Bonnie CLAC carry on its mission to help members of our community, regardless of income, find reliable, sustainable and long term solutions to their transportation needs. Get in touch with us, and we'll handle the rest