Is there a car sitting in the garage that isn’t needed, doesn’t run, and is simply taking up space? If so, then consider donating a car to charity. When donating a car, the first step is selecting an intermediary company which arranges the towing and selling of the vehicle. These companies sell donated cars, taking a certain percentage of the profits and giving the rest to charity. When deciding to donate a car it is a good idea to research the different charities and decide which one you wish to support. Many of these intermediaries have a list of suggested charities to choose from. One might assume that if the car is not in good condition that no company will take it; however, this is actually not the case at all, and often vehicles which are not even in running condition are accepted. Another little-known fact is that most of these companies will also accept other types of vehicles such as trucks, boats, trailers, and motorcycles. Searching for a car donation service is a breeze with the Internet, as there are many websites to browse through. Select a qualified charity so that the IRS will offer tax deductions.
One of the best reasons to donate a car to charity is the ease and convenience it provides. Selling a vehicle usually entails placing an ad in newspaper and taking potential buyers on test drives, or trekking around dealerships looking for a high trade-in value. If the car is broken it might be easier to donate it rather than spend time and money getting it repaired. With car-donating services there’s not much to do except making the call and letting them tow the car away. Many companies serve all fifty states and can show up within a matter of days.
One of the great aspects of donating a car to charity is the tax deductions. The IRS has a policy of giving tax deductions for charitable contributions. To apply for a deduction on a donated car, the first step is to search for the fair market value using a service such as Kelly Blue Book. Take into consideration that the fair market value is the maximum the IRS will allow to be deducted from the income tax return; this is often considerably less than the Blue Book value. When donating a car it is important to keep all paperwork, because the IRS will request the signature of an authorized official from the charity; if the donation is valued at over $5,000 then a written appraisal from the charity is required.
Donate a car to charity and benefit all parties involved. The charity gets much-needed money, and the person donating gets a tax deduction. The convenience alone makes the choice of donating a car a valuable alternative to other choices. If there’s an old clunker that you want to get rid of sitting in your garage month after month, don’t hesitate to get in contact with one of these services.
By Edward Griffiths