Your Old Car Still Has Value: How We Maximize Your Tax Deduction
When you donate a vehicle to Newgate School in Minneapolis, MN, we work hard to maximize your potential tax deduction under IRS rules. Not only do you get the full benefit of your gift, but you are also helping the local community as it supports great training for underserved young adults who go on to good-paying jobs in a career that they love. Unlike other organizations that accept vehicle donations, the majority of cars given to Newgate School are repaired and refurbished prior to sale, so your fully loved car goes on to have a second life. If it qualifies, it can also be given as a life-changing vehicle to a single, working Mom in the community who doesn't have access to reliable transportation.
All donated vehicles are assessed individually as they come to the school. Our primary goal is to use the vehicles in training for our students. Newgate is a self-sustaining program (we do not receive any federal or state funding for the school) which means we rely almost 100% on the sales revenue from cars that are sold to continue running the program. While we strive to repair every vehicle, if the cost of repair or refurbishment is more than we can recover on the sale, we're unable to use it in training. Even in those cases, however, the vehicle helps support the school and our students when it is sold "as is" or used for parts to repair other vehicles. Every donation is important to the continued success of our students!
If Your Vehicle is Used for Training
If your vehicle is used in either of our training programs, you are able to take the fair market value as your tax deduction. Our students learn the general auto mechanic skills they need to become auto mechanic technicians by repairing mechanical issues that get the vehicle back on the road. It may also be refurbished by students who are learning auto body and collision repair skills. All vehicles receive basic maintenance checks and are thoroughly detailed so they look as good as they run when sold at auction.
If Your Vehicle is Used for Wheels for Women Program
If your vehicle is selected as a Wheels car to be given to a single, working Mom who doesn't currently have reliable transportation, you are able to take the fair market value as your tax deduction. To be eligible for this program, vehicles must be in good overall condition, have minimal rust and reasonable miles, pass a strict vehicle maintenance check, and be insurable and repairable by a future owner at a reasonable cost.
If Your Vehicle is Sold "As Is" or Used for Parts
If your vehicle cannot be used in our programs, Newgate will use it for parts or sell the vehicle "as is" to a variety of potential buyers. Newgate works with a local auction house, specialty car buyers, individual dealers, local car clubs, online auctions, and salvage yards to ensure we are always getting the best possible price for your donated car. We appreciate your decision to support our programs and will never take your donation for granted. Your vehicle's selling price determines the amount of your deduction.