501(c)

[JamesVincent]

My mother and I recently started doing work for a 501(c)(3) animal shelter. We are actually 2 of the very few paid employees of the shelter. My question is this. They are using two older cargo vans to transport and deliver animals to other shelters and customers, one of which, the bigger one, is constantly in the shop. If I go to a Dodge dealership and try to get a Sprinter donated to the shelter, what is the shelter liable for, as far as taxes on that donation? I want to try to help them out, especially getting something with a higher capacity and better mileage, but I don't want to put a burden on them at the same time. I know Kentucky is different as far it's own taxes but what about Federal? I'm going to be the one doing the bulk of the transports so it would be nice to have something reliable to drive on 800 mile trips.

[Arthur Rubin]

At first glance, the shelter has some added paperwork, and must issue a statement to the dealer saying the vehicle will be used in support of the shelter's purpose. (That way, the dealer gets a full tax deduction for the value of the vehicle.) If the vehicle will be used for other than the support of the shelter's purpose, or maintenance, there will be unrelated business income to deal with, or, if for your (or other employees') personal use, those employees would have imputed income.

But the last sentence applies to existing vehicles, as well.

I'll research this further and get back to you tomorrow, if no one else jumps in. I have to take my wife to a doctor's appointment.

[JamesVincent]

The vehicles are used only for business of the shelter, either dog transports or picking up food or donations. We have to keep a log of every run and its purpose since they are past their point of probation and can be audited.

On a side note, hey Gregg, was in your neck of the woods yesterday. Apparently one of their biggest supporters is in Bowling Green, Oh and I spent all day going from Morehead, Ky to Bowling Green and back. Got to see a lot of Ohio off of 75, found several things I want to take the kids to when I get time.