Donors and Property Donations
Why Americans Donate?
Each year the citizens of the United States prove themselves to be more charitable than others throughout the world.
Whether the need is in a foreign land or within our own borders, Americans have been consistent in their generosity and support of worthwhile causes. Through their gifts of cash, volunteering or property donations that can be liquidated, the American people are supporting charitable missions every day. ASC believes that this generosity is one of the hallmarks of the American citizen.
Individuals donate for a variety of personal and professional reasons. However, regardless of their primary motivation, most derive personal satisfaction in knowing that they have done something worthwhile that has truly benefited another person or Charitable Organization.
Tax Deductions
The government of the United States encourages its citizens to donate to worthy, charitable causes. The Internal Revenue Service (IRS) allows Donors of property to take advantage of tax deductions for their charitable giving. These deductions make charitable donations comparable in savings to the outright sale of property.
DONATING IS GOOD FOR YOUR WALLET AND YOUR SOUL.
How is the tax deduction calculated?
Currently, Donors are permitted a tax deduction equal to THE SELLING PRICE of the donated property.
The typical procedure for liquidating donated property amounts to picking up the property and selling it at auction as quickly as possible in an "AS IS" condition. This liquidation approach results in LOWER SALE PROCEEDS and CORRESPONDING TAX DEDUCTIONS for Donors.
Unlike our competitors, ASC's repair shop is able to make significant improvements to a large percentage of donated property which allows it to sell at a greater price. The Donor will then receive a tax deduction equal to the greater selling price.
ASC makes significant property improvements in order to increase the tax deductions for Donors and to significantly increase revenue for its charitable clients.
THERE IS NO COST TO THE DONOR FOR ANY IMPROVEMENTS MADE BY ASC TO THE DONATED PROPERTY.
When property improvements are made, ASC will provide the Donor with a detailed listing of improvements made by ASC and the related cost. This detailed listing should be attached to the tax receipt (IRS form 1098-C) and both should be included on the Donors tax return when claiming deductions. To assist the Donor, ASC will mail one (1) copy of the repair listing to the IRS, and two (2) copies to the Donor as soon as the property is liquidated. Providing this detailed property improvement listing helps ensure the receipt of tax deductions for those who itemize deductions on their individual tax returns.
Claiming tax deductions can be confusing. ASC removes some of the burden by providing the Donor with all of the required IRS forms necessary to complete the tax filing; however, we recommend contacting your tax specialist to ensure that you are in compliance with all rules and regulations.
Why do Charitable Organizations and their Donors use ASC?
ASC strives to achieve the maximum financial result for each property donated to benefit the Charitable Organization and the Donor. When ASC repairs or refurbishes donated property, the selling price increases resulting in greater tax deductions and Charitable revenue.
When we believe that improvements will result in a higher selling price, we advance OUR OWN CAPITAL to make the necessary improvements. ASC never asks the Donor or Charity to advance funds for improvements in order to increase the selling price, which is why our services are so valuable to both Charities and Donors.
The typical liquidator's "AS IS" mentality for auctioning donated property results in significantly less revenue to Charities and tax deductions for Donors. WHY? Simply because these organizations DO NOT INVEST in IMPROVEMENTS to the donated property. Charities and Donors who don't use ASC are likely loosing valuable revenue and receiving lower tax deductions. In today's economic climate, it is imperative for both Donors and Charities to choose their liquidator carefully.
Partial Cash Payment - Bargain Sale
Afraid to donate high-yield items because you think you will miss out on money from the sale? Consider a 'Bargain Sale' and earn cash while making a difference for a Charitable Organization.
For those Donors debating a high-value charitable gift versus a sale, ASC utilizes PARTIAL CASH PAYMENTS to encourage donation of the property for charitable purposes. This approach allows Donors to receive some cash as well as the maximum legal tax deduction permitted. The combination of these two offers makes the benefits of donating comparable to an outright sale. The IRS refers to the partial cash payment as a 'Bargain Sale' which permits the Donor's gift to be treated partly as a donation and partly as a sale.
The Donor is permitted a tax deduction equal to the difference between the cash payment received and the proceeds generated from the sale. The 'Bargain Sale' approach is generally limited to higher valued donations such as; automobiles, yachts, boats, motor homes, and recreational vehicles, etc., whose value is at least $5,000.
ASC cares so much about the success of our Charitable Clients that we UTILIZE OUR OWN CAPITAL as the 'cash payment' to encourage Donors to gift higher valued property. The 'Bargain Sale' approach PRODUCES HIGHER REVENUE FOR Charitable Organizations.
I want to donate, but getting the property to ASC is such a hassle.
We are grateful for your donations and want to make the process as easy as possible for our Clients. ASC provides Donors with free pick up and transportation services to the ASC facilities. Additionally, we provide both Donors and Charities with free storage of their property donations in our secure lot.