If your nonprofit organization needs a vehicle either for your own use or for a prize in an upcoming fundraiser, it's often worthwhile to approach car dealerships. A single dealership won't always be able to afford to give away cars and vans for charities, but the odds are much better if you approach the right company with a compelling opportunity that would benefit you both.
Finding Car Dealerships That Donate Vehicles to Nonprofits
Most car dealerships are small businesses, so they won't always be able to afford to donate vehicles to charity. Those that have donated cars in the past may be willing to help your charity now or in the future. Perhaps the best way to find out who may be a good candidate is to simply ask by writing a letter, making a phone call or dropping by in person.
Networking is always a good idea, so talk to the people in your organization, particularly those on your board who may have contacts in the business community. A business owner may be more likely to discuss your proposal if he knows someone involved in your organization as opposed to being approached by a stranger.
Sending a form letter or a generic email to every dealership in the county may save you time but is unlikely to be your best approach unless your organization is extremely well-known. Keep in mind that a vehicle is a sizeable donation for anyone, so investing the time and effort in making your request personal will likely open more doors for you than a form letter.
Matching Your Request to the Right Company
There are several reasons nonprofits need vehicles and several reasons they may approach a dealership. If you need a new vehicle as a prize for an event, approaching used car dealers won't be a good investment of your time. However, if you're looking for a vehicle that your organization will be using to drive around town, a used-car dealer may be more willing to help since the cost is lower than a brand-new vehicle.
For a used vehicle, a car dealership isn't your only option. Car rental companies, for example, may be willing to make car donations to nonprofit organizations. You can also contact local repair shops and auto-body shops. If they have a customer with an expensive repair, the customer may be willing to donate it to charity and buy a new car instead. You'll then just need to talk to the shop owner about donating time and parts to help you get it in working order.
Keep in mind that local dealers are more likely to help local charities. If your nonprofit isn't local, you may be better off contacting an automobile manufacturer directly. Manufacturers that work with nonprofits usually make applications available only during specific times of the year. Be certain to read the requirements carefully to see if your organization qualifies before filling out the application.
Approaching a Dealership for a Vehicle Donation
When approaching a dealership or other company for a vehicle donation, make certain that you explain exactly what you need and why you need it. You should also explain what your organization does and how the donation will benefit others beyond your own organization. Be prepared to provide information on your organization's budget, testimonial letters and letters of recommendation from people your organization has served in the past.
Give the dealer good reasons to help your charity, like adding the dealership as a sponsor in your advertising. You should also develop a media campaign to help promote the gift, which will promote your organization while promoting the donor as a benefactor and a community-minded business. Be certain to remind the dealer that he can be eligible for a significant tax deduction based on the market value of the vehicle, and that you will provide him with a written acknowledgement of the vehicle to be filed with the IRS.
If you need a vehicle to use as a prize in a fundraising event, explain how much money you expect to raise and for what the proceeds will be used. If the dealer is unable to provide you with a vehicle, perhaps the owner will be interested in making a cash donation or giving you a free or reduced-price lease on a vehicle.
- Enterprise Holdings: How to Submit a Request
- Cars Helping Charities: Non-Profit Benefits
- General Motors: Charitable Event Sponsorship Guidelines
- General Motors: Apply for Funding
- US Hole in One: How Much Do Hole In One Prize Packages Cost?
- Cars for Your Help: Dealerships With Car Donation Programs
- FundraisingIP: How to Ask for Car Donations
- IRS: Instructions for Form 1098-C
- Do not hesitate to call and be sure that the person is still at that location before sending your request. Always be careful to spell the contact person’s name correctly before you send out any mail.
- Avoid sending requests to car dealerships by express mail, as funders may see this as wasting money. If you want to ensure that it is received, just choose a delivery confirmation option when mailing the letter.
A published author, David Weedmark has advised businesses on technology, media and marketing for more than 20 years and used to teach computer science at Algonquin College. He is currently the owner of Mad Hat Labs, a web design and media consultancy business. David has written hundreds of articles for newspapers, magazines and websites including American Express, Samsung, Re/Max and the New York Times' About.com.