Do you have an old car sitting around that just won’t sell? Is there a car you are thinking of getting rid of to make room for something newer? You can avoid the hassle of buying ad space, worrying about how to get rid of it, and setting up appointments for people to come see your car. Feel like giving to charity? If so, you are eligible to make a charitable car donation! Charitable car donations help charities raise money—and help you save money by avoiding repair, insurance and selling costs on your car, not to mention the tax deduction you will get.
What constitutes a donation?
Charitable car donations aren’t just about cars—you can even donate RVs, boats, trucks, and trailers. Even vehicles that don’t run are often acceptable. The only reason a vehicle might not be accepted is if the car is unlikely to run again. The charity that receives the car has to cover the expense of towing, titling and refurbishing the vehicle in preparation for sale, as well as the sell fee imposed by the seller. This means that older vehicles whose value would not offset the cost of towing are unfortunately rarely accepted.
Charitable car donations are almost always tax deductible, but all states are different so be sure to check with a tax professional to see if you can receive a tax benefit from the donation.
How do I donate?
Most collection agencies would prefer to have the title to the vehicle when they pick it up, but check with them to see what your options are if you don’t have it anymore. Sometimes you don’t need to have it with the vehicle. The IRS (Internal Revenue Service) allows you to appraise the fair market value of your vehicle. The Kelley Blue Book is a great source to use. It will help you analyze your vehicle for engine type and bonus features. If your car has a feature like automatic windows and doors, or power steering, it might boost the car’s value and help you out. When appraising, you should also remember to take into consideration mileage and vehicle condition when appraising to get the fairest price.
The pick-up process.
When the donation agency comes to pick up your vehicle, they will provide you with a donation receipt to verify your donation and help you with your tax deduction. Usually this receipt won’t say the price value directly on it, so make sure you keep your own records as well.
Many collection agencies will conveniently and quickly pick up your car donation, free of charge. They often work with a local professionally licensed, insured towing company. The vehicle can be picked up any time you request, but at the most you should be contacted within three or four business days, depending on the collection agency.
Where does my donation go?
When you make charitable car donations, the proceeds go to various charities. Some of these include financial assistance and research money for those suffering from eyesight ailments, help for needy families, or money for charities like the Cancer Research Institute or the American Diabetes Association.
By Lyndsey Payzant