Frequently Asked Questions from Charities

 

Is Action Donation Services (ADS) a registered Commercial Fund Raising organization?


Yes, American Donation Organization dba Action Donation Services is registered as a Commercial Fundraising Organization in every state where we either advertise or have client charities. We are meticulous in following all state and national guidelines including registration requirements, DMV and IRS regulations. Of course registration with any government organization does not imply in any way their endorsement, sanctioning or approval of any commercial fundraising program.

Please explain what the liability is to our charity when using Action Donation Services to facilitate our property donations?

Whatever liability there is in accepting cars, boats, RV's, etc, it is absolutely minimized when using ADS! From the minute donations are picked up, ADS assumes responsibility and any potential liability for the donated property. ADS executes all necessary title transfers with exactness and completes the necessary legal paperwork to insure release from liability. In addition to being a registered Commercial Fund Raising Organization, ADS is a licensed and state regulated auto dealer and auto auction.

We protect our client charities and their boards by carrying exceptional liability insurance coverage. We are told that our coverage is considerably greater than what most of our competitors carry. Our national network of wholesaler and towing partners are also carefully screened, insured and bonded. When you are a participating charity with ADS, the IRS will recognize autos, boats and RV's processed by ADS for you as legitimate donations to your charity. There is no sign-up fee. Our Agreement can be cancelled at any time by the
charity. Our program is essentially a risk free proposition.


We want to do a thorough "due diligence" investigation of Action Donation Services, will you provide us with references?

Yes, references are available on request. We welcome and expect legitimate charities to check us out thoroughly. We have the highest standards of honesty and integrity and invite a thorough and comprehensive "due diligence" review of our company and its principal officers. Our best references are of course our client charities.


Why should our charity select ADS to facilitate our auto and boat donations?

why we are the bestSimply put, ADS is much more effective and efficient than any other facilitator at maximizing the value for each donation. Read "Why We Are the Best!" That means much more revenue for the charity and greater deductions for the donor.

 

Each property is processed in the manner that will generate the greatest return, which includes such things as detailing, bodywork, and mechanical repairs depending on the condition and marketability of the car, boat, or RV. Some are retailed, others are auctioned, and some are sold to dismantlers. This attention to maximizing the return on each and every donation is what sets ADS apart from competitors. Additionally, ADS is able in many cases to offer "Partial Cash Payments" to donors for donated property. In so doing, ADS can often obtain property with a higher value when compared to straight donated property. ADS also provides detailed and timely reports to the charity on each and every donated item including up-to-date inventory, funding, and donor source reports available on-line 24/7 to participating charities. Action Donation Services® does print media and internet advertising to benefit its client charities. They do not charge for print media advertising such as Yellow Page and other print media advertising – and only charge a modest fee for donations generated through internet promotion. These are donations that a charity would not otherwise receive! As much as 60 to 90% of donations going to many of our client charities are generated by ADS advertising. See "Summary of Benefits" for a list of unique ADS benefits. This list can be used as a checklist so you can compare the ADS program with others - you will see there really is no comparison!


We see that your fee structure is comparable to your competitors with some being a little higher and others slightly lower in the fees they charge. What should we look for when comparing fees?

We believe our Agreement (contract) and fee structure is by far the most attractive in the business. Note: you can't properly compare "percentage of payout" claims alone. Fees charged are important, however what is most important is to compare the services that are being provided. You want to be sure that all possible services are being provided that will result in the maximum resale value for donated property. Action Donation Services is unsurpassed in maximizing the resale value of donated property benefiting both the charity and the donor! When donation programs and services are properly facilitated, marketed and executed, the caliber of the property will be much more valuable when compared to what most charities are accustomed to receiving.

 

ads al 2Our fees are comparable to most of our competitors, however, the service and support we provide our client charities goes way beyond what others provide. For example, the way we process vehicles "fixing them up" whenever feasible and selling them both at auction and/or retail, dramatically increases the revenue going to the charity and the amount the donor can claim for a deduction. (See Tax Info) Note: as much as 60-90% of the donations received by our client charities may be generated by ADS advertising, which is free to the client charity. A competitor who claims a 70% payout to clients but does not advertise to benefit client charities and/or does not "fix up" donated property when feasible prior to sale, does not sell retail whenever possible and doesn't provide charitable cash purchases, can never generate the income that the Action Donation Services program can generate. Equally important is the ability to provide maximum legal tax deduction. Your donors deserve to receive the MAXIMUM LEGAL TAX DEDUCTION possible.


It is important to us that donors are properly thanked. How are donors acknowledged?


Donation acknowledgement is as follows:

 

(1) When the property is picked up, the donor receives a temporary receipt,

 

(2) When the property is sold, the donor is mailed a thank you on behalf of the client charity and a tax receipt.

 

(3) Client charities can go online 24/7 and download all donor info and thank again if they wish, or add the info to their newsletter, donor and mailing lists.

 

 

Our client and donor relationships are our number one priority!


One of our board members says car donation programs have a "bad image", what's that all about?


Prior to 2005, there was some "bad press" about car donation programs in general but the criticism was aimed primarily at some donors who were claiming unrealistic and inflated deductions when they donated vehicles and other property. The criticism was not directed at charities or the companies who process donations for charities.

 

Recent IRS rulings put in place January of 2005 have eliminated the previous problems of donors claiming inflated values. No longer can donors claim estimated market values of donated property (unless the value is under $500). After the property is sold, ADS is required to send the donor an official IRS form 1098-C. A copy of the form is also sent to the IRS. This new IRS process should eliminate any more donor abuse. In fact, the IRS encourages donations of property to charities by the deductions they offer. When all regulations are complied with, it is a perfectly honorable and productive way to generate income for a charity. It is rare these days to find a major non-profit that does not have a property donation program. Hundreds of millions of dollars are going to non-profits every year as a result of property donation programs. You really should have a quality property donation program as a part of your fund raising portfolio!


How do we sign up?

Please (1) study the Information For Charities pages on this web site and (2) view our on-line video, The Action Donation Services Story, then (3) go to our Sign Up Your Charity page and request an Application and Agreement (contract). Review our Application and Agreement carefully. Secure the necessary approvals for your charity. Return your signed Application and Agreement. We will review your application. If your application is approved we will sign a copy of the Agreement and mail it back to you for your file. We can begin accepting and processing donations for you as soon as the documents are signed and approved.

 

To learn how you can enjoy the benefits of the Action Donation Services® Fundraising Program and receive more information about our service including a copy of our contract for your review: Click here:

http://www.actiondonation.org/ADS/ApplicationAgreement.aspx