Nonprofit organizations looking to raise money by accepting donated vehicles need to do their homework before selecting a third-party vehicle processor. What these companies charge the nonprofits varies…widely. Some take as much as 95.5% of the value of the vehicle leaving the charity with a measly .5%. And then there are others that may return more than 80% of the vehicle’s value to the charity.
Admittedly, there’s a lot of work and expense involved with vehicle donations, and some companies do more of the work than others. They can handle the advertising to solicit donations and the vetting to determine if the value of the vehicle is worth the effort. If a vehicle is accepted, then it must be towed, stored and sold in some manner, with the requisite paperwork completed along the way.
Unless the nonprofit has the staff and expertise to do all the work itself, as well as the storage space and means to sell the vehicles, this avenue of fundraising should be left up to a third-party processing company. However, before jumping onto the vehicle donation bandwagon, it’s important to do the research in order to select wisely and reap as much money as possible.
See The Orange County Register for an informative article with more details on this topic.