Donating Cars - A Popular Option to Keep Your Privacy
Donating cars has become increasingly popular. It is often preferable to trying to sell it privately with so many predators out there nowadays. If the car is not worth anything in trade-in, many people find donation a good alternative to junking the car. It keeps the car off the scrap heap and makes it available to someone that really needs it. This is a win-win situation for everyone including the charity, the donor, and eventually the person that buys it. The car should be in running condition when you donate it. Some charities will accept cars that need minor repairs, but check with the charity to see what their requirements are.
Donating cars comes with very little hassle for the donor. The charity handles the entire process after you contact them. The only thing you have to do is get the proper receipt, file your taxes, and take the deduction you get. This is great for people who have busy lives and still want to get rid of that old clunker from their college days. Many charities will accept other motorized vehicles such as trucks, vans, boats, and RV's. Again, check with your preferred charity to find out what they will accept. All of them go to auction and the charity receives the profits from the sale.
Some people get leery of donating cars when they hear about groups that auction cars off for charities and keep some of the proceeds. Charities come in many sizes and shapes. A few of the larger charities have enough specialized personnel in house to handle these donations. However, many smaller charities don't have that level of workers or expertise. They hand the cars over to the selling specialists. While the specialists do receive a portion of the profits, it helps keep costs down with the charity. It is a common trade-off of many charities.
When donating cars, make sure you get a proper receipt for the donation. The receipt should list the charity, full indentifying information on the car, as well as when and where the charity received the car. All of this, along with pictures of the car, will help answer IRS questions about non-cash donations. Keep copies of all documentation surrounding the vehicle, including the title and repair receipts. This will all prove the value of the vehicle at the time of donation. Keep the documentation with your tax return in case the IRS has questions.
