Donate Your Car to Charity - Find Out the Facts Before You Donate
When you want to donate your car to charity, many people only see the potential tax write-off. Right now, you can deduct around $500 depending on the vehicle you donate. An accountant can help you find out if this changes. What kind of car can you donate? Most charities want cars that run. If your car needs some minor repairs before it will start, it might still qualify for a donation. The best way to see if your car is acceptable is to contact the charity of your choice. They will let you know what they will accept and what they won't. In addition, you can donate not just cars. Many charities will accept trucks, RV's, motorcycles, and other motorized vehicles.
If you have any questions about what happens when you donate your car to charity, call the charity, and ask. Some of them sell the cars off and use the proceeds for their work. Some may choose to keep some vehicles if the charity can use it for transporting people or goods. Some may use the vehicles for clients' who need a car to find work. This is often not a permanent use, but a loan for a good cause. If the charity sells the car, you need to know how they do this. Some do it themselves. Others, to save overhead, use third parties to get rid of the cars. A portion of the proceeds goes to these third parties, but it helps keep costs down at the charities.
Check with local organizations to find out where to donate your car to charity. Many people have organizations where they regularly donate money and goods. If you don't have a favorite, ask your friends and family for recommendations. You may find some passionate people who know which charities are reputable and which ones to avoid. If you still have questions, contact the local Better Business Bureau to verify they know of the charity and see if there are any complaints filed against them. This will insure you donate to the right organization.
When you donate your car to charity, you should receive paperwork that includes a receipt of the contribution. If you don't, that is a red flag. All reputable charities will gladly offer their tax-exemption credentials when you ask for them. They should provide a receipt upon collection of the vehicle. Take the time to make the right choice for a donation site.
