A donation car given to charity can solve a lot of your problems regarding taxes, money, and garage space. Giving a donation car to charity is easier than it seems; all you need to do is choose your charity, visit their website, fill out their donation form, and wait for them to pick your car up. In some cases, however, you may experience a few hassles from third-party brokers or wrongly listed charities. To avoid such incidents, follow these tips before giving away your donation car.
Check with the authorities
The charity should be listed under Section 501(c)(3) of the IRS Publication 78. This is available from the IRS website or most public libraries. You will only be eligible for tax deductions if the charity is of this type.
Do a background check
You want to be sure your donation car goes to a reputable charity who shares your views. First of all, find out what they are about: their goals, major projects, main office, and other basic information. Next, find out what they are doing with their earnings. The Better Business Bureau requires that at least 50% of the charity's earnings go directly to their programs and activities, so make sure your charity complies. Try getting a copy of the charity's annual report to see how much they are earning from fund-raising projects and how they are using the money to support their purpose.
The value of your car
You can get tax deductions of $500 or more with a donation car. To find out how much you can benefit from your donation, you can consult your tax advisor or check for the Blue Book value of your car. Upon the arrival of the tow truck, the driver will give you your tax receipt, which you can use to claim your tax deduction when the time comes.
What happens to your car
A vehicle donation program is one of the best ways for a charity to earn money. Usually, your charity will sell the used car in an auction or to a junk shop, and the total earnings will go to their activities and programs. Non-profit organizations can actually rely entirely on vehicle donations to keep their programs active. Some of them even have their own used car lots where they process those used cars by themselves, while others make use of third party brokers who handle donations in exchange for a small percentage.
Not just used cars
You can actually donate any type of vehicle to an eligible charity's vehicle donation program. For instance, the Children's Wish Foundation (http://www.childrenscharity.org) also accepts used boats, cars, RV's and even trucks so you can help us grant the wish of a deserving child.
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