How to Donate a Car

There are many deserving agencies and organizations that could benefit from the donation of your car. Included in this article you will find some suggestions on how to donate a car, so that your donation has the greatest benefit to the organization getting the vehicle and yourself.

First of all, you should donate directly to the organization and not used an intermediary. There are several for-profit organizations that offer to help in your car donation to charity. Do not be fooled into using one of these organizations. These companies typically pocket over 50 percent of the value of the vehicle for themselves. The charities lose out on half of the donation before they even see the car. Most major charities already have a built-in system for accepting the donation of vehicles. If the charity you wish to donate does not accept car donations, then check around and find another charity that does. You should look for a reputable charity before you donate. You can contact the local Better Business Bureau office and find out what the charities’ track records are online.

If you still decide to donate via an intermediary, find out beforehand how much of your donation is actually going to go to the charity. Some organizations give charities a flat fee or monthly donation from each donated car.  If you are looking for a tax deduction at the end of year from your donated car, make sure you understand exactly what the intermediary is giving to the charity. You don’t want to later find out that your donation is not eligible for a tax deduction. Remember that to qualify for a tax deduction from the Internal Revenue Service (IRS), the receiving organization must be designated as a non-profit 501 (c) (3) organization.  The IRS website has a list of non-profit organizations that qualify for having your car donation to be accepted as a tax-deductible expense.

Avoid having to pay a tow truck or another person for delivering the donated car to the charity by doing it yourself. This maximizes the amount of donation you give and that the charity receives. It is very important to transfer the title of the vehicle as soon as you donate the car. You do not want to be responsible for any citations or tickets the car gets when it’s no longer your responsibility. Go to the department of motor vehicles in your state and re-title the vehicle under the charities name. Never hand a charity a transfer of title document with the new owner’s space blank.

They are times when you can report the fair market value of the donated car. If you want to claim more than a $500 donation for your car, then the IRS will likely require further evidence that the vehicle was worth as much. Make sure to get a receipt from the charity stating the amount of money they made from your donated car. If your car is worth less than $500, or if the charity uses the vehicle in their charitable work, then further evidence of the donation is not needed by the IRS.

Photo Credits: The Consumerist

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Posted by How To Car on January 9, 2012 in Buying and Selling, Car Tips. You can skip to the end and leave a response. Pinging is currently not allowed.