If you’re considering a charity car donation, I’m going to summarize some of the facts you should know. You can receive a nice IRS tax deduction for your old or used car and help someone in need in the process.
It’s called a car donation or charitable car donation when you give a charity your vehicle: car, automobile, truck, ATV, RV, airplane, or any other vehicle that may or may not be in usable condition. In the US, charitable vehicle donations provide a large tax benefit for the donor and are quickly gaining popularity.
First, you want to know the mission of any charity you are considering. If you have a specific charity in mind for car donation, do some research on it, especially if you’re unsure of the charity’s reputation. There are many national and local charities that advertise in newspapers or on television and openly advertise that they are looking for car donations. You’ve probably seen a few of these, but are they your best bet?
Donated cars are sometimes used by charities in their daily charitable activities, sometimes to transport people. Maybe they can use it to transport people in need to medical appointments, social worker appointments, hospital tests, etc. More often though, the vehicles will be sold at auction or on their car lots to raise money for charitable programs or their general fund. Yes, it is not common knowledge that many charities have their own car lots. Many Goodwill Industry stores have their own.
Many people choose to donate their used and junk cars to help others. If you buy a new car or own a car that is not running, you may want to consider donating the car, truck or other vehicle. You can also donate boats, RVs, ATVs, planes and other vehicles, or even real estate, depending on what your charity agrees to. Your donation is tax deductible, helping you and the organization to which you donated the vehicle.
Day after day, charities provide needed services and support to people in communities across the country. While some may receive government grants or private donations, this is never enough to serve the many causes they pursue. Charitable car donations are a planned part of the nonprofit organization’s budget. These vehicle donations can make all the difference in the type of services you can offer. So if you donate vehicles you will help these organizations continue to function
Simply put, car donation means acquiring vintage cars from donors and donating them to charity. There are car donation companies that are intermediaries or links between donors and the people who benefit from these donations. They are a great help in funding charities. Some companies even help organizations that don’t have their own charitable programs. Car donation companies can auction off the donated car or other vehicle on the market and the money is given to charities or the car can be used by the charity or sold on their used car lot.
When you donate your car to charity, you receive a charitable donation IRS tax receipt. Vehicle donations when made to a bona fide and reputable charity are tax deductible. The IRS allows the donor-taxpayer to claim a tax deduction on the assessed value of the vehicle up to $500. The donor of the car or vehicle must have title, so be sure to have it handy when you start the process.
Be sure to ask if the charity handles car donations – have your own charity car donation program or pay an outside company to do it. If the for-profit company handles car or vehicle donations, find out how much money the charity receives from the sale and how much will go to the for-profit company.
You’ll see the car donation program in almost every major city in every state in the US, including California, Massachusetts, Minnesota, New Jersey, New York, and Michigan. There are no laws that prevent charities from accepting these types of donations.
Some of the car donation charities you might check out are: Target, Purple Heart, Kidney Foundation, Salvation Army, Goodwill Industries, and various cancer organizations.
Either way, you’ll benefit greatly from donating your car to charity, both by claiming a nice donated car deduction or tax benefit and by helping charities continue to operate so they can help people in need.
