Federal legislation changes tax deduction law so that people who donate cars can only claim the amount the charity earns on their deduction and not the fair market value. Volunteers of America estimates the change will cost them about 45 percent of their revenue.
Seventy percent of Lansing's VOA funding comes from the sale of used vehicles. In anticipation of the new law, the VOA is making plans to close the New Hope Day Shelter. The shelter is a place to get advice on getting back on their feet, use the phone and fax machine, and come in from the cold.
The VOA says closing the shelter may be the only way to keep funding for overnight shelters and food programs. There are no immediate plans for closure yet, and the organization plans to look for alternate ways to fund it while they finish using the money they have set aside so far.