How much will my tax receipt be?

How much will my tax receipt be?

Donate A Car Canada has a few different ways to process your vehicle. We ensure that we are raising the highest donation we can for your charity of choice! Because of this, our fee structure is unique for each method, and so is your tax receipt outcome.

Three options for processing a donated vehicle

We assess each vehicle’s particulars to determine the best course of action, breaking it down to one of three options:

1) We may auction your vehicle. This method is generally applied to vehicles that are within 12 years of age. Mileage will be close to, or under, 250,000 kms. Furthermore, the vehicle will be in good running condition. All vehicles sold at auction are sold with an ‘as is’ and ‘unreserved’ status (sold to the highest bidder).

There is not a hard and fast rule or an easy way to predict an as-is sale auction value.  What we can tell you is that we have had donations as high as $66,000 as a result of our auction process! For this reason, there really are no limits to how much your charity could receive.

2) We may recycle your vehicle. This process is typically used for vehicles that are older in age, higher in mileage, and often requiring repairs to major components of the vehicle. These types of vehicles are recycled, and we receive a donation value based on the curb weight of the metal.

3) We may re-sell/recycle your vehicle. This option applies to vehicles that may not perform well at auction, but may not be ready for recycling. Through our re-sale/recycle process, we have our tow agent assess your vehicle once they have it on their yard. If they see re-sale value in your vehicle, they will advertise it to their own buyer base. They will sell it as-is, to the highest bidder. If they determine that they will not find interested buyers, they will recycle it.

What else do I need to know about my tax receipt amount?

For auctioned/re-sold vehicles, Donate a Car Canada’s commission structure is to retain 0-17% off of the gross sale price, up to a maximum of $1000. Each sale outcome is reviewed individually, and allowances are made for any vehicles we feel have not performed as well as hoped for on auction day.

Donate a Car Canada will always send a donation to the charity, regardless of the sale outcome. In the event of an auction sale that results in a negative sale outcome (where, for example, transport and auction fees exceed the sale amount), Donate a Car will apply a negative commission (out of pocket) to ensure that those costs are covered. The charity will receive a donation, and the donor will receive a tax receipt.

Commission on recycled vehicles varies as scrap metal prices fluctuate across the country. You will receive an email to advise you of the amount specific to your donation prior to your vehicle being picked up. We will always honour this quote. Please call if you have any questions about this (1-877-250-4904).

Donate a Car Canada is partnered with CanadaHelps to assist all charities in processing the tax receipts to their donors. This service provided by CanadaHelps withholds a 2.5% fee from all donations before they are disbursed to the charities.

Donate a Car Canada keeps overhead and expenses to a minimum with each option. Moreover, we are here to provide optimal returns for all receiving charities. The fees recovered from donations go towards office expenses and supplies, payroll, marketing, bank charges, phones, website and system maintenance, and other regular business costs.

If you have additional questions about our donation process, please feel free to call us toll free at: 1-877-250-4904

If you have a vehicle you are ready to donate, please submit your information using our DONATE NOW feature.

It would be our pleasure to help you raise a valuable charitable donation!