GBC News

Century Engineering donates fleet vehicles to Vehicles for Change Inc.

Posted: November 1, 2006

Century Engineering
10710 Gilroy Road
Hunt Valley, MD 21031
410.823.8070
(Fax) 410.823.2184
jschingeck@centuryeng.com Contact: Jacquelyn Schingeck
Vice President, Business Development

HALTHORPE, MD - Vehicles for Change Inc. (VFC), a non-profit organization based in Halthorpe, assists less fortunate families by selling them a reliable automobile at a minimal price, providing a fifteen month loan, a six-month warranty and identifying assistance with insurance, title, tags, and taxes.

Francis X. Smyth, President, of Century Engineering felt that this was a great way to retire his 100 fleet vehicles. The cars not only assist families in gaining employment, they increase the local tax base by increasing the number of taxpaying individuals and his firm can benefit through the tax deduction.

Mr. Smyth stated that “donating his fleet made good moral and financial sense. In the past, we simply disposed of the cars in the easiest way possible, realizing little or no value. By donating them to Vehicles for Change we increase our net gain by as much as 100% and help someone improve their lifestyle.”

Under the tax law, enacted in January 2005, the fair market value deduction is only available on cars donated to a nonprofit who, as part of their mission, sell the donated car to a low income family at significantly below market. Car donations to VFC and a few other non-profit organizations meet the exceptions in the new tax law.

The families receiving these cars are able to gain or maintain employment, as well as take children to daycare and after-school recreational and athletic activities. Recipients typically see an average increase of $4,800 in their annual salary in just the first twelve month after receiving their car.

Martin Schwartz, President of Vehicle for Change” notes that even the most financially conscience Fleet manager selling the retired fleet at the local auction will only realize a net gain of $60 per car over donating it to a similar non-profit.

Since October 1999 Vehicles for Change has awarded more than 2,000 cars. For more information, visit: www.vehiclesforchange.org .

Computations based on a 1999 Ford Taurus with 100,000 miles
$2,840.00 FMV X .40 tax rate = $1,136 cash result

Amount realized on the sale of sample car at auction, $1200.00
Difference between donating to VFC and selling at auction. <$60.00>

(Average selling price of 8, 1999 Ford Tauruses at the local auctions, $1400. less auction fee of $100.00 and towing fee of $100.00)

Century Engineering is a full service, multi-discipline professional engineering firm, provides a comprehensive range of design and construction engineering services to government agencies and various private industries throughout the United States. Century’s headquarters is located in Hunt Valley, Maryland with offices in York, Pennsylvania; Dover, Delaware; Elkins, West Virginia, and Oakland Maryland.

For more information please contact Jacquie Schingeck at 410.823.8070.

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