Car Donation To Charity Rules Have Changed!

Car Donation To Charity Rules Have Changed!

by Sam Ness

A change in the last years made car donation charity less attractive for taxpayers, and delivered mixed results for charities that take cars. Some are reporting little or no change in the number or value of charitable auto donations for a tax deduction. Others say the changes have hurt their fundraising efforts. In one case the car donation charity that usually gets more than $12 million per year from the sales, saw the figure dropped to less than $7 million. As it stands now, the deduction a taxpayer can claim for car donation charity is limited to the amount for which the car sells at auction.

When donating to charity, taxpayers can deduct what they are able to document as the car's fair market value. Because cars often sell for much less at auction than owners think they're worth, deductions will be much less and the charity must notify the taxpayer of the amount the car sold for before a deduction can be realized, unless the car is worth less than $500. An exception is if your giving is to a car donation charity that is going to use the car and not sell it. Then you can deduct the fair market value for the charitable auto donations. Car donation charity feared lower deductions would scare people away. Some charities and firms that auction cars for charity think that the lower tax deduction won't hurt donations and charity fundraising. That's because most of the people who donate to charity don't itemize, so they can't take a deduction anyway.

Most people are participating in car donations to charity because of convenience. They don't want to have to spend money to get the car in shape, to sell it. It is simple to participate at charitable auto donations! People like you and I, donate their cars to charity, and increase its funds, thus making a profound change in the overall standard of living of the neighborhood, and the nation. Your vehicle donation helps support a charity of your choice in their vital work. Theoretically, every charity may choose from a number of fundraising activities, including car donations, for financial support. Because of the substantial unit values, receiving car donations, and selling them for profit, is one of the favorite funds gathering models. How a charity operates a car donation program may have tax consequences. The program can affect the charity's exempt status; and impact the tax-deductibility of the donor's contribution. If any charity operates a car donation program in a manner that confers improper benefits on private parties, the charity's exemption may be adversely affected. If the charity loses its exemption, its income is subject to tax, and it must file the appropriate federal income tax return. However, if the tax laws are adhered to, the program should not negatively impact on the charity's tax-exempt status. Donors may deduct their contributions (if all legal requirements are met).

The car donation charity may hire a private, for-profit entity as an agent to operate its car donation program. Both of them must establish an agency relationship that is valid under the applicable state law. Generally, an agency relationship will be established where the parties agree that the for-profit entity will act on the charity's behalf and that the for-profit entity's activities covered by the agreement are subject to the charity's audit. Accordingly, the charity should actively monitor program operations and have the right to review all contracts, establish rules of conduct, choose program operators, pre-approve all advertising materials, and examine the program's financial records. Although it seems quite strict, the idea is to prevent any wasteful actions on part of the operator, that have the potential to reduce the net profits available for the charitable causes, and thus limit your impact, as a donor, on the beneficial work of your chosen nonprofit organization.

Honda Civic IMA: Hybrid doesn't have to be boring

Honda Civic IMA: Hybrid doesn't have to be boring

by Jerick Brooks

The call for eco-friendly vehicles has made automakers from the US and Japan to compete for the cash, hearts, and mind of the growing green car buyers. And presently it seems like the Japanese brands Toyota and Honda are leading the green vehicle department.

Honda maker of Honda exhaust system and Toyota have provided green car buyers with solutions in the shaped of modern design hybrid cars which were very much welcomed in both US and Japan reflected by the huge sales that these two hybrid brands have obtained. The success of hybrid vehicles has also reached other countries as a matter of fact the Irish government has responded positively to the arrival of hybrids in their market. It has given 50 percent Vehicle Registration Tax (VRT) rebate on hybrids. This is the government's way of encouraging the Irish people to purchase hybrid vehicles.

Despite the alluring tax incentive that the government is offering it is not enough to convince people to purchase a hybrid vehicle. People buy cars based on three factors and these are looks, performance, and price. Honda Civic and Toyota are very much aware of this and that's why they have taken the effort to create the Honda Civic IMA and the Toyota Prius in accordance to the preference of their customers.

Honda hybrid cars make use of advanced Honda exhaust technology that lessens harmful emissions same with Toyota although it employs a different exhaust system but the end product is just the same. The new Civic IMA hybrid leads in terms of strict engine performance. Its 1.3 liter Honda engine and 10 kW electrical system revs up a total of 115 bhp while the 1.5 liter petrol Prius produces only 76 bhp. The Honda system compared to Toyota produces more torque and can achieve a higher forward speed.

On the other hand the Prius score much higher in terms of acceleration and economy. It's almost half a second faster in terms of acceleration to Honda---11.5 seconds compared to the 12.1 seconds for the Civic IMA in a 0 to 100 km/hr race. The Toyota Prius is also more economical than the Honda Civic IMA that is despite the fact that IMA is rated as very clean with CO2 output level of just 109 g/km.

At the heart of the Civic IMA is the new Honda Hybrid System which is consists of a new 1.3 liter 3-stage iVTEC engine plus Integrated Motor Assist (IMA) ---which explains the IMA in its name. The new Honda Hybrid System makes use of intelligent engine functions plus it is said to give the performance similar to that of a 1.8 liter engine while improving fuel economy, achieving very low levels of exhaust emissions, and reducing the system size by five percent.

The Honda Civic IMA's 3-stage iVTEC engine utilizes three hydraulic pathways to couple and uncouple five rocker arm assembles, providing three stages of valve control depending on the driving conditions---to achieve a combination of responsive driving and fuel economy. In times of deceleration when the cylinder are idle, the combustion in all four cylinders is stopped and sealed shut, which reduces pumping losses caused by the engine aspiration for a ten percent improvement in recovery of braking energy. Everything has been done on the IMA to reduce friction and that includes the use of aluminum die-cast pistons.

The electric motor system of Honda utilizes coils with high-density windings and high-performance magnets to achieve high output. The inverter that is used to control the motor speed is integrated with the motor's EGU for more precise digital control which is said to contribute to an even greater motor efficiency and fuel economy.

The battery output of the IMA has also been increased by almost 30 percent. Honda also claims that the IMA's more compact, custom-designed battery storage box provides better cooling performance as well as vibration resistance for long term reliability.

The regenerative braking system of the IMA is engaged hydraulically to allow optimum braking regeneration along with smooth deceleration that conforms to brake-pedal pressure. IMA's air conditioner unit features a hybrid compressor that is powered by both the engine and the motor. In case rapid cooling is needed it is powered by the engine and the motor combined. Once the temperature is stable it runs off the motor alone for improved comfort and fuel savings.

The performance of both the Prius and Civic hybrids is almost similar however the Civic IMA is better in styling. Honda's designers have ensured that the appeal of the IMA would match the tastes of modern audience.