Unfortunately I'm a little late on this, but it's still an amazing cause and hopefully more shops will start doing something like Joe.
"Joe Doebele, owner of Joe Bike, will take $50-$100 off the purchase of a new bike when customers bring in a repairable clunker. Joe says his mechanics get last word on whether or not the bike is “repairable”. If it is, he will issue the rebate and then donate the old bike to a local non-profit (like the Community Cycling Center, Bike Farm, etc…)."
Cash for Clunkers full article.