Frequently Asked Questions & Tax Questions

GENERAL FREQUENTLY ASKED QUESTIONS – Tax related questions below.

Do you only accept cars for donation?
We accept many types of motor vehicles and trailers including boats, RV’s, motorcycles, trucks, and cars. If you would like to know if your vehicle is eligible, please contact a vehicle donation program coordinator at (703) 349-3025.

Does my vehicle have to be running to donate it?
Sometimes we can take your donated vehicle, running or not. It must have an engine and transmission and be tow-able. Contact a program coordinator at (703) 349-3025 to find out if your donation qualifies for pick-up.

My vehicle has 212,000 miles on it, will you take it?
We automatically accept vehicles with 120,000 miles or less, provided the vehicle meets our other criteria. Any mileage over 120,000 will require that you contact a program coordinator at (703) 349-3025 to find out if your donation qualifies

Where and when can I drop off my vehicle for donation?
Our Donation Processing Center is at: Master Mechanic, 14303A Sullyfield Circle, Chantilly, VA 20151. Vehicles can be dropped off 24 hours per day, 7 days per week. Please contact a program coordinator at (703) 349-3025 to find out how to drop off your vehicle and what is needed before you drop it off. We GREATLY APPRECIATE it when donors can help us out and drop off donations. It keeps our expenses lower which means more money goes to helping those in need.

How quickly can you come and pick up my vehicle?
We try to make donating your vehicle convenient as possible. While we love it when a donor can drop off their donation at our Chantilly, VA Processing Center, we understand that sometimes that is not possible. We normally can have your vehicle removed within two to three business days. Call our volunteers at (703) 349-3025 for full details.

Do I have to be with the donation at the time you pick it up?
Normally not. Special arrangements can be made by calling our representatives at (703) 349-3025.

What paperwork do I need to give you?
The only paperwork we need is a signed, clear title. Please have your title with you when you call-in your donation or email us. A clear title means the title is in the name of the donor and that all liens on the vehicle have been satisfied. Sign the title in the area where it says, “signature of seller” and fill out nothing else!

Do I need an emissions inspection or safety inspection in order to donate my vehicle?
We do not require either of these items for you to donate your vehicle, though we will ask you about these items when we qualify your vehicle for donation.

What are the benefits of donating my car to the FAIRFAX LIONS CLUB?
The FAIRFAX LIONS CLUB is LOCAL. 100% of the money we receive after repair costs goes back to support our charitable operations. We deduct or take NO MONEY from charitable funds to pay for administrative expenses. Our Lions members donate and absorb 100% of these administrative costs!

You benefit by being able to reduce your taxable income when taxes are itemized. Our Vehicle Donation Program allows you to take a larger legal tax deduction than almost every other car donation program in the US! We process and sell at retail all vehicles donated – we don’t send them to a third party processor to be wholesaled off at pennies on the dollar.

You avoid the costs and hassles associated with selling your car. No need to pay for continuing vehicle registration, insurance, and repairs to keep your car in running condition while you wait for a buyer.

TAX RELATED QUESTIONS

Disclaimer: This section is not intended as tax advice. It contains answers to questions we most frequently receive. Please make sure to consult with your tax advisor or attorney about how the IRS rules apply to your particular situation.

How does the new law effect my tax deduction?
The IRS has changed the way you can deduct a vehicle donation as of January 1, 2005. You used to be able to deduct the fair market value of any vehicle donation – but no more. The new rules allow the donor to deduct only the amount the Charity receives for the vehicle. Most Charities do nothing more than wholesale or auction off their donations, resulting in limited income and a limited tax deduction to the donor. There are exceptions to the rule and that is where your donation to the Lions Vehicle Donation Program is different!

One of the exceptions to the new IRS regulations allows donors to still deduct the fair market value of their vehicle, provided the Charity “materially improves the vehicle”. Since we run the program ourselves, are discriminating in the vehicles we choose, repair and materially improve vehicles that we accept, and sell at retail most of the vehicles we get, our donors is still able to deduct the fair market value of the vehicle donation from their taxes! Many vehicles sell at above market value giving you an even larger deduction.

Do I get a tax receipt when I donate my vehicle?
Yes and No – Please read on. Our representative will issue an “Acknowledgement of Receipt of Vehicle” at the time of pick-up. This is not your final tax receipt unless your vehicle sells for less than $500. We normally do not accept vehicles that sell for this low a price. This “Acknowledgement” will show your name, as well as the year, make, and model of the vehicle you are donating. It will be your only receipt if your vehicle sells for less than $500.

We are required to send you an IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes within 30 days of your donation. This 1098-C will state the amount of gross proceeds received from your car, provided your vehicle sold for more than $500. Should your vehicle not sell within this 30 day time frame, we will still send the Form 1098-C and certify that we “materially improved the vehicle”. At this point you may deduct the full “fair market value” of the vehicle from your tax return since we materially improved the vehicle. We recommend you consult your tax professional for such advice.

How is the value determined on the vehicle donated?
The value is determined by the gross proceeds raised from the sale of the donated vehicle, or the fair market value of the donation. This sale amount will be filled in on the Form 1098-C that we send you when your donation sells within 30 days. Should the vehicle not sell within 30 days, we still send you the required Form 1098-C with a certification that we materially improved your vehicle. In this case, as a courtesy, we will send a copy of the Kelly Blue Book Value Guide for your vehicle at the time you donated it so you can determine your donations value. You no longer have the burden of guessing the value yourself.

How much can I claim as a deduction?
According to the tax law effective January 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is limited to the gross proceeds of the sale, or the “fair market value” if the vehicle is “materially improved” by the charity that receives the donation and not sold within the 30 day time frame allowed before the Form 1098-C must be sent to the donor.

What if my donation is valued over $5,000?
Effective January 1, 2005, you are no longer required to have vehicles appraised. The value you may claim will be the amount of gross proceeds received from your vehicle, or the determined “fair market value” if we materially improve your donation.