DRIVEN TO GIVE; WHAT TO ASK BEFORE YOU DONATE.

Byline: Jason Takenouchi Staff Writer

Sometimes giving is receiving, especially when charitable donations before Jan. 1 become tax deductions on April 15.

But amid the morass of advertisements and charities, people who choose to donate vehicles should pay close attention to the fine print. Specifically, how much does a charity actually receive, and is the charity legitimate?

First the hard facts: Your charity will only receive a small portion of the value of a donated vehicle. Contract agencies - generally for-profit entities - process the donation, handle the eventual sale and get most of the value of that used car or truck. Agencies usually take either a flat fee or a percentage of the resale value of the vehicle.

``The charities usually end up with 5 to 20 percent, after everything is paid for,

Charities usually sign on with for-profit agencies because it's too costly for the charity to handle the paperwork, towing and other complications of vehicle donations. Without the agency, most charities wouldn't be able to take vehicles at all.

So before you donate, do your homework. If you're unsure whether the non-profit charity is legit, check with the Registry of Charitable Trusts in Sacramento (800-952-5225, http://caag.state.ca.us/piu/charity.htm) or ask the charity to send you a copy of its two-page tax exempt status determination letter from the IRS.

You should also research the charity's activities and goals.

``Quite a number of local charities have gotten involved with vehicle donation appeals, ``With a few phone calls, you may be able to find something that matches your particular given interests. Some agencies pay out 30 percent or more of the eventual sale price of a donated vehicle or, more commonly, a donated vehicle's parts. For example, Donated Property Systems Inc., a Van Nuys agency, returns about 38 percent of its revenue to charities such as the American Red Cross and the Make-A-Wish Foundation.

The easiest way to check out a charity's vehicle donation program is to ask the charity itself. An agency's overhead is usually written into a charity's contract with the agency.

As with any charity, vehicle donation programs must register with the Charitable Services section of the Los Angeles Police Commission. Each company must have a permit from the commission that includes an organization's name, address, phone number, permit expiration date and purpose.

If any of that information is missing, it's not a real permit, Flucus said.

Paul Besterveld, chief executive officer of Donated Property Systems, said a legitimate agency will not accept cash payments when it sells donated cars or car parts. And when an agency's towing contractor picks up a vehicle donation, it should provide a bill of sale and a release of liability.

The state Attorney General's Web site, www.caag.state.ca.us, also has a searchable database of charities.

After a donation is made, it's up to the vehicle donor to state the fair market value of the donation to the Internal Revenue Service.

The vehicle's blue book value is a good starting point, but Besterveld said donors should also check out the selling price for similar cars. And if a car needs repairs, donors should deduct accordingly from the declared value.

``The IRS doesn't recognize values that the charity says a car is worth, ``You make a decision based on good common sense.

Once the transaction is complete, be sure to keep the paperwork for your IRS 1040 form. If the claimed value of the vehicle is $500 or more, you'll have to fill out a Form 8283, too. And if you claim your donation is worth $5,000 or more, you'll need an independent appraisal.

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PHOTO (color) Donated Property Systems Inc. of Van Nuys receives between 30 and 40 cars daily, given to charities.

Charlotte Schmid-Maybach/Staff Photographer