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Overview
Melwood got its start in 1963 as an organization that helps people with developmental and intellectual disabilities. Currently, it serves more than 1,000 disabled people at more than 70 contract sites throughout the Washington, D.C., area. Melwood's largest contract is with the U.S. Naval Academy where more than 150 of its workers provide custodial services. Melwood's primary source of funds derives from donations of automobiles, trucks, vans, boats with trailers and recreational vehicles. Since its beginning it has processed more than 150,000 vehicles donated to it not only by area citizens but nationally.
Significance
Many organizations rely on vehicle donations. National charities such as the American Red Cross and Volunteers of America actively seek out such donation, while thousands of local charities make a plea for these donations to citizens in their areas. However, Melwood is unique in that it renders its services to the disabled in the Washington, D.C., area, yet operates its vehicle donation program nationally.
Time Frame
Melwood will arrange to pick up your vehicle within 72 hours of your call. Within five weeks, your vehicle will be sold and you will receive certification from Melwood of the gross selling price, which you can use as a deduction on your tax returns.
Procedure
While donating a vehicle to charity is a rewarding experience, many people do so because, in most cases, their donation is tax-deductible. Melwood understands this and is equipped to handle every detail required by the IRS. When you call it toll-free at 1-800-MELWOOD, you will be asked the make, model and year of your vehicle, its condition, the vehicle identification number, and whether a lien is to be released before you make your gift. At the time of your call, arrangements will be made, at your convenience, for towing, as well as Melwood setting in motion the procedure necessary to guarantee your maximum deduction.
Tax Deductions
The amount you can deduct from your federal taxes was altered by a change in IRS regulations in 2005. Before then, a taxpayer simply entered the amount he thought the vehicle was worth on his returns. However, many people deducted an amount that exceeded the value of the vehicle; so, in most cases, you will now be limited to a deduction of $500. However, if you donate a newer vehicle that is worth more, you must provide the IRS with a form that states what a charity received for the vehicle at auction. Melwood has received many such donations and is equipped to provide whatever you will need to support your deduction.
Potential
When people face difficult financial times, they choose to keep their vehicles longer before replacing them. Consequently, there will be greater opportunity to make gifts of used vehicles to charity than during easier times, and organizations like Melwood will benefit more than ever.
