Many charity organizations have a program of having people donate automobiles for different charitable causes. Auto donation programs have been around for quite some time, and the Internet now facilitates the process for people who wish to donate. This is how the donation actually works.
If you were to do a search on the Internet looking for Web sites asking people to donate vaehicles, you will see a whole bunch of them. A variety of charity organizations use the car donation program as a means of raising money for their respective organizations. Most charity organizations will have a liaison between the people who make donations and the actual charity organization. This liaison is the company who actually sells or auctions off the automobiles. They are usually not nonprofit organizations; the charities they represent are the nonprofit organizations. In other words, the intermediate company is in business to make money; and they are trying to make as much money as they can.
A suggestion that might help you when considering whether or not to donate a car is to find out who is the intermediate representative for the nonprofit organization. If you are worried about how to donate, this intermediating company might be the best for information. You can ask this company to give you specifics on the auctions they hold for the charity organizations they represent. You can even go as far as asking them what kind of profit they make and what percentage of the proceeds they actually give the charities after the process is completed. People who donate automobiles should know this information.
Probably the next best thing to do is contact the actual charity organization and find out what kind of “cut” they receive from the liaison. If they receive a good portion of money from the auctioned car, it’s probably pretty safe to donate your car to the charity. If people donate automobiles, for example, and the charity doesn’t receive a fair “cut,” it might be better to find another charity that uses a different liaison. You may also want to consider just selling your car and giving the money to a charity organization to avoid the whole issue of how to donate a car.
If you wish to donate a car, you should typically go through a reputable charity organization — one you know will actually receive the money from your donation. If you don’t know any reputable organizations, you should ask friends or relatives for the names of such. Just remember to donate to someone you know and trust, or someone you have heard you can trust.
People who make car donations will be able to receive tax deductions from the donation. One thing you need to keep in mind is that if you donate automobiles, you need to itemize your tax information. If you don’t itemize, you won’t get the tax break. You should consult with your tax professional for more information about what tax write-off you can expect when you donating to charity organizations.
Hopefully some of these guidelines will help you as you make a decision to donate automobiles to the charity organizations that need this kind of financial assistance.
By John Ivie