Do you have an old car that you don’t really want anymore? Do something great for you and somebody else by donating it to charity! A car donation program not only offers you a tax deduction, but money from the car usually goes to a charity such as Donate-Car-For-Charity (an international humanitarian aid organization), Gifts for Sight (a fund for the research of the keratoconus eye disease), and Christ Cars (benefits San Antonio Youth for Christ – a Christian youth ministry). These are non-profit programs that use car donations to fund research or aid organizations.
Not only can you donate your car, but organizations also accept RV’s, boats, airplanes, motorcycles, jet-skis, campers, trailers, trucks, vans, SUV’s, classic cars, construction equipment, farm equipment, stocks and bonds, homes, real estate, and timeshares. These charities will most likely sell your car and then use the proceeds for their program. They may also use an auction as a way to sell the car.
When participating in a donation program a portion of the proceeds goes to overhead, which includes any administrative fees such as towing and repairs, and an intermediary (if used). The intermediary is a third party such as an auto auction or car broker. If you want to make sure your donation is going to good use check out how much of the proceeds go to the organization and how much go to overhead.
Most charities ask that the donor figure out the car’s “fair market value”. You can find this out by visiting one of links provided on a donor organization’s Web site such as Donate-Car-For-Charity’s site which has the Kelly Blue Book. This is a reputable site that is recommended by many organizations. Donate-car-for-charity.com also advises that a site such as Kelly Blue Book will only be able to appraise your car if it is less than $5,000. If the car’s value is more than $5,000 you must get it confirmed by a certified vehicle appraiser. Most organizations even accept cars that aren’t running. Some require your vehicle be only a certain number of years old. And if a vehicle requires too many repairs, the organization may not accept it. Keep in mind the condition of your car will affect its value.
It is always wise to be aware of scams. Research the charitable organization before donating your car. Non-profit organizations should meet the standards of the Better Business Bureau. If they provide a phone number it would be smart to call the organization with any questions you may have. Make sure to ask how much of the proceeds go to an intermediary. It also may be a good idea not to sign anything over to an intermediary, make sure it is signed over to the charity. The bottom line is to research your charity and make sure there is nothing fishy going on. Unfortunately, as we all know, the Web is a breeding ground for scams. There are also some good FAQ’s on the Charities Review Council Web site. Also try visiting the above charities for various car donation program.
By Nila Steinkamp