Donate Car To Charity

Donating a car to charity is a good thing. By donating your used, broken down and unwanted old car to charity you are really helping to make a difference in the lives of others. It helps the charity and it lowers the amount of tax you owe. Donating a car to charity is a very appealing way of making a contribution because it is such a simple process.

Most car donation programs make it very easy to donate. All you need is an old or unwanted vehicle and its certificate of title to be eligible to donate. Donating a car to charity can be an alternative to going through the hassles of selling an older car or having to settle for sub-par trade in value despite your vehicle being in reasonably good condition.

Car Donation Benefits

Donating a car to charity is also a great way to help those individuals, groups, and families in need. Every year lots of less fortunate people benefit from the donation of a car. This is a great way to give back to one’s community.

Despite the 2005 donation law changes, donating a car still benefits both the donor as well the charity and others. Donating a car is an excellent way to get rid of old unwanted vehicles.

What To Watch Out For When Making A Car Donation

There are hundreds of car donation programs on the Internet. However, do your due diligence. Check out these programs carefully with the assistance of the better business bureau before signing over the title to any vehicle. Unfortunately, there are some unscrupulous companies that steal cars and never deliver the cars to the charity. Research the background of all companies that look promising to make sure they are legitimate. Make sure the organization is qualified to accept charitable gifts. If you donate your car to an organization that is not qualified to accept charitable gifts then you are not eligible for tax deductions.

How To Donate A Car Step-by-Step

You will need have the following things available before your start the process:

1. Car
2. Car title
3. Registration
4. License plate
5. Insurance information

First things first. Choose your charity organization. There are many charitable organizations around the country that take cars, including Purple Heart, the American

Red Cross, the Ronald McDonald House Charities and the Salvation Army. You also have the option to look into local charities as well. Whatever you do, make sure the charity is a registered 501(c)(3) if you want to deduct your car donation on your taxes.

Next make sure to talk to a representative of the charity you choose. Your goal is to find out what the organizations is going to do with your car. You need to find out of it plans to sell your car outright or keep it to drive or give to someone else to drive. If the response is to sell the car, you can deduct the greater of the price the charity gets for your car or $500. If the response is to keep the car or give it to someone else to drive, you can deduct the entire fair market value.

The third step is to make a trip to your local Department of Motor Vehicles and get a title transfer. Be sure to ask the charity representative for the official name of the organization beforehand and have the title transferred to this exact name. You must then turn in the car’s license plate and cancel the registration. Also, notify your insurance company that you no longer own the vehicle. It is important that you understand that you cannot legally drive this car after completing these tasks.

The next step in the process is to call the charity and notify a representative the car is ready to be picked up. If the charity does not have the means to collect the car, you’ll have to have it towed. Any of the national charities listed above should be able to come get the vehicle.

The fifth and final step. Make sure to put away all of your donation records, wait until tax time and claim your appropriate deductions.

Conclusion

When you donate a car it is usually a win win for all involved. You get the old junk taken off your hands, the charity gets the proceeds donated towards it, and you get a great tax break.