Charity Car Washing

1. Charity Car Washing Building Community Goodwill While Watching Your Bottom Line Grow.

2. Community Support • City Manager • Environmental Compliance Officer • Delta County School District • Redeemer Lutheran Church

3. City Support July 11, 2002 Lorie Cady Cruisin’ Clean Car Wash 153 Main St. Delta, CO 81416 Dear Lorie, I would like to take the opportunity to thank you for your efforts and involvement in our community through your organization related to car wash fund raisers. Your sensitivity to the environment is only a single component to this success. From the standpoint of community, “Cruisin’ Clean Car Wash” has allowed numerous youth groups the ability to successfully raise funds without the traditional methods of door to door solicitation from our business community. As a business owner I am sure you have been subject to the seemingly day-to-day requests for assistance to help one organization after another to meet a financial goal. Your program has had great success in assisting while taking the pressure off our other businesses throughout the community. Your program also provides an atmosphere on our Main Street that characterizes what our community is about, commitment to our youth, home town family spirit, and a safe and energetic quality of life. On behalf of the City of Delta we thank you and wish you continued success. Rich Englehart City Manager City of Delta

4. Environmental Support Dear Cruisin’ Clean Car Wash, Thank you for helping various fund raising organizations operate in an “Environmentally Smart” manner. Too often, these well-meaning organizations hurt the environment and may unknowingly be breaking the law. Due to recent enforcement of federal stormwater regulations, the City of Delta has had to order legitimate charities to cease and desist their parking lot or street-side washing activities because soap, oil, grease, and other contaminants were being washed into the curb and conveyed to our ditches and rivers through city owned drains and discharge points for which we are responsible. Thanks to thoughtful and knowledgeable car wash operators like you, pollutants can be partially removed at the car wash and receive full treatment at our wastewater plant before being discharge back into our important waterways. Now due to your efforts fund raising groups have the option to use great facilities in a high profile area where many were going to wash their vehicle anyway. Your efforts have shown respect for our water resources and have cut down on the need for enforcement actions. Thanks again. Sincerely, David SmithEnvironmental Compliance OfficerCity of Delta

5. School Dist 50

6. Tokenote Promotion Tiny Treasures Preschool Redeemer Lutheran Church 1000 Pioneer Road Delta, Colorado 81416 Thanks to the generosity of Mocady Car Wash, Tiny Treasures Preschool at Redeemer Lutheran Church in Delta, Colorado, was able to purchase playground equipment. Since the preschool opened in March 2001, fundraisers are very important to get needed equipment. We certainly appreciate the efforts of Mocady Car Wash in helping us achieve this goal. Preschoolers as well as church members helped sell carwash tokenotes, so the fundraiser was a huge success. We plan to sell tokenotes again since it was so effortless and very successful. God’s Blessings! The staff at Tiny Treasures Preschool Sheron Driessner Redeemer Lutheran Board of Education

7. Our Charity Programs • Fundraiser car wash held at Cruisin’ Clean Car Wash on Saturday from 10:00 am to 3:00 pm. • Tokenote program at Mocady Car Wash allows flexibility for the group. You should however establish a time frame for them.

8. Church groups ($6,911) Delta Christian Church Redeemer Lutheran Church Vineyard Youth Young Life Delta United Pentecostal Saint Michael's Boy’s Club Assembly of God Youth Calvary Baptist Youth Pathfinders Gunnison Valley Church of the Nazarene First Baptist AWANA Club First Baptist Youth Spanish Assembly of God Youth Sports Teams ($6,035) AAU Basketball Babe Ruth Baseball Calhoun Outfitters Baseball Delta Sweet Cleats Cardinals Baseball Delta Karate League Grand Mesa Bambinos Delta Youth Football Colorado Special Olympics School groups ($14,186) Thunder Mountain Christian Academy Delta High School Senior Class Junior Class Sophomore Class Student Council Cheerleaders Dance Team Tech Student Association LEO Club LULAC Golf Volleyball Football Starmakers (Show Choir) Cedaredge High School Band Volleyball Delta Middle School Cheerleaders Other Groups ($2,810) Big Sky 4-H Boy Scout Troop 479

9. How Much Did They Make?

10. The Rules • No horseplay allowed. • Signs holders are not allowed to stand in the median. • Kids are not allowed to drive cars. • Do not spray each other with wand. • Do not suck your face or other body parts with vacuum. • Pick up vacuum hose after each use. • You will use high pressure wash and rinse only. • Keep the hose in the bay hung up when not in use. • Turn the rotary switch to off, if any time is remaining on meter. • Bring the empty coin containers to the office for a refill.

11. Signage • This sandwich board sign is provided by the car wash and is changed for the group of the day.

12. More Signage • The groups are encouraged to make additional signs.

13. Vacuuming • They are issued 25 blue painted quarters. • The line forms at the vacuums. • Two kids, one on each side of the vehicle.

14. Vacuuming • Pass the vacuum hose back and forth to get the job done quicker. • After vacuuming the car will proceed to the wash bay.

15. I Thought You Said No Horseplay! • The horse is named Skeets and comes twice a year for a bath.

16. Washing • Tokens are issued 25 at a time for washing. • First they high pressure wash. • The wand operator is followed by the hand washers. • Then high pressure rinse.

17. Drying • Shamies were donated by local businesses. • Donated money is received by youth.

18. Tokenote Program • Tokenotes have a $5.00 value and work in the automatic car wash. • The group is issued a block of tokenotes that have been sequentially numbered. • They sell them for the face value and keep 40% or $2.00 for each one sold. • They return any unsold tokenotes and $3.00 for each one sold.

19. Insurance and Tax Issues American Family Insurance Jeffery Henion, CPA

20. Insurance Liability • Talk with your own insurance agent about their companies policies.

21. Tax Issues Jeffery Henion – Public Accountant (Enrolled to practice before the IRS) 231 Grand Ave.; P O Box 1029 Paonia, CO 81428 (970) 527-2350, Fax (970) 527-6191 Mocady Inc. Delta, CO 81416 Dear Lorie, I have researched your question regarding a deduction (as a charitable contribution) for the value of car washes that have been donated to local charitable organizations and have found that they are not deductible as a charitable contribution. The reasoning is that you can not take a deduction for something you have in fact never paid, have not recognized as income or there are no actual out of pocket expenses (the actual expense of the car wash is deducted as part of cost of goods sold, see later documentation). Section 42.8. CONTRIBUTIONS OF SERVICES AND UNREIMBURSED EXPENSES A taxpayer is not entitled to deduct the value of the taxpayer’s time or services contributed to a charity. Reg. Section 1.170A-1(g). Since the taxpayer does not recognize the value of the services contributed to a qualified charitable organization as income, to allow a deduction under such circumstances would provide an unwarranted benefit to the taxpayer. SECTION 1.170A-1. CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS; ALLOWANCE OF DEDUCTION. Any costs and expenses pertaining to the contributed property which are incurred in the year of contribution and would, under the method of accounting used, be properly reflected in the cost of goods sold for such year are to be treated as part of the costs of goods sold for such year.

22. The Dollars • What day is the busiest? • How much revenue will I lose? • Dollar comparison for advertising. • How my automatic use has increased. • How my total sales continue to rise.

23. Usage By Day

24. Usage By Hour

25. Comparison • If a bay makes $1500.00 per month divide that by 30 days your potential revenue is $50.00 for the day. Multiply $50.00 by 44.55% and your loss for the day would be $22.28 in revenue. • Newspaper service directory - $20/wk. • Phonebook yellow pages – $47.50/mo. • Radio ad (1 min.) - $18.80.

27. Automatic Use Increases

28. Total Sales

29. WCA Materials Available

30. Final Action • Start holding charity car wash events and you will see the following benefits: • You will gain high exposure to your car wash and see the benefit of new customers. • You will help the environment by conserving water and preventing contaminated water from polluting our waterways. • You will gain free advertising. • You will become known in your community as someone who cares. As your image in the community grows, so will your car wash sales.