The ABCs of Car Donation - O is for Opportunity

When you donate your car to charity, it opens the door to a lot of valuable opportunities. You get the opportunity to divest yourself of a car you do not need and you get to do it in the most opportune way.

There are only a very few requirements for donating a car to charity. You just need a valid title, your car has to be intact and it has to be in place where the tow truck can easily get to it. And, your car will be picked up at no charge to you. There is no muss, no fuss involved. There are no car repairs required, no negotiations with a car dealer or a private party, no wasting time or money advertising or showing the car. Car donation only requires a very few minutes on the phone or on the internet.

Car donation offers you the opportunity to get a very nice tax deduction. Your tax deduction is equal to the amount the charity sells your donated car for or $500, whichever is more. All that is required of you to claim your tax deduction is to simply itemize on your federal tax return. The charity you donate your car to will provide you with all the paperwork you will need to claim your valuable tax deduction.

When you donate your car to charity, you have the opportunity to assist a charity whose mission you believe in. The money generated by the sale of your car donation can support International charities that are helping to promote human rights, animal rights, environmental issues or who provide food, shelter, medicine, health care, education, etc. to third world countries or to countries who have been struck by a natural disaster. Through your car donation, you have the opportunity to support National, regional or local charities that are striving to cure disease, illness and injury, or to provide services and education for those currently suffering and their families. You also have the opportunity to help charities that provide food, shelter, health care, counseling, etc. to the homeless, poor or those who are suffering from mental illness or substance abuse. You have the unique opportunity to help charities that provide assistance to victims of child abuse, sexual abuse,  abuse against women, animal abuse, or who provide education, training or other programs for young people, the disabled, the unemployed or the under employed or to charities who provide services to the elderly and/or their families. You can also help support charities who assist veterans, active duty members of the military or their families. The proceeds from your car donation will also afford you the opportunity to support various religious organizations or ministries. Or, you can help charities that support the arts, music, libraries, etc.

If you have a car you no longer need, you have a chance to help yourself and to make a difference in the life of someone else. All you have to do is seize the unique opportunity and donate car to charity.

The ABCs of Car Donation - N is for Need

When you donate your car to charity you do not just satisfy your needs. You also satisfy the needs of the charity you donate car to and those of the community.

Car donation satisfies your needs in many ways. First, you get rid of a used car you no longer need. You also save yourself the aggravation of haggling over the trade in value of your car with a car dealer. No one needs that! You will not need to pay for advertising your vehicle for sale privately. And you will not need to waste your valuable time waiting for people to call or come to look at your car or negotiate the sale price for the car. It is very difficult to sell a vehicle that has a major problem and/or does not run.

When you donate car to charity, you will not need to fix it. Most car donation charities will gladly take it no matter what condition it is in. And the charity will have your car picked up fast and free, thus satisfying your need to get rid of it to make room for your new or newer car. You will also get a valuable tax deduction for your car donation. Who does not need that?

Most charities sell donated cars. Newer cars or cars that run are generally sold through public or dealer only auctions. This helps to supply the market with much needed used cars. Older cars, cars that do not run, are significantly damaged or rusted are usually sold directly to parts yards. There, the valuable parts are removed from the cars and the remainder is crushed. This not only helps to provide needed used car parts to the market, it also is a needed source or scrap metal, most of which is sold overseas for construction.

Charities rely on car donations for some much needed revenue. When you donate your car, there is an extremely wide variety of needs it can help to fill. With your car donation, you can provide food, water and shelter to needy people in third world countries or in your own community. It can go to help fund needed research for many diseases, illnesses or causes. It can be used to help fund educational programs or other programs to help young people. The proceeds from your car donation can help fulfill the needs of those currently suffering with physical or emotional problems, or those that have been abused or abandoned. Or, it can provide services for veterans, soldiers and/or their families. Your car donation can help animals either worldwide or in your own area.

There is a lot of need in our world, especially now because of the state of the economy throughout the world. The used car you do not need any longer will be used to help fill some of that need and also fill some of your needs. To do that, you simply have to donate your car to a charity that fills a need you believe in.

The ABCs of Car Donation – M is for Money

When you donate your car to charity, you will save a lot of money. First, you will save money at the car dealership. Most auto buying guides say you will be able to negotiate a much better price for a new or used car without a trade in.

Through car donation, you will save the money you would have paid to advertise the sale of your car either on the internet or through the newspaper. Also, if your car does not run, has a major mechanical problem or a lot of body damage, you may have to fix it in order to sell it for a decent price. Donating your car will save you the money you would have paid in repair costs. Also, you will not lose any money by having to take time off from work to show the car, fix it, etc. And, if your car is in really bad shape, you will not have to pay money to have a junk yard come and tow it away.

Most car donation charities will be quite happy to accept your car no matter what condition it is in. You will simply need to give them a valid title. When you donate your car to charity, they will pick up your car fast and free and at a time that is convenient for you. That will save you money on the unused part of your car insurance, registration, license plates, etc.

You will be eligible for a tax deduction of at least $500 when you donate car to charity. To claim your money saving tax deduction, you just need to itemize on your federal income tax return. In most cases, the charity you donate your car to will sell it. If they are able to sell it for more than $500, that sale price will become the amount you can claim as your tax deduction. Unlike many things in life, getting a tax deduction by donating a car to charity is not a gamble it is a sure thing.

The charity you choose to donate car to will use the money generated from its sale to help further their mission. They may use it to help fund research on a wide variety of illnesses or diseases. They may use it to provide information and services to those inflicted with aliments, or with mental illness. The proceeds might be used to provide counseling services, for education or for programs for young people. The money may even go to help fund services for wounded soldiers, veterans or their families. Some charities use the proceeds from the sale of car donations to help provide shelter, food and medical services to needy individuals or homeless animals.

When you donate car to charity, you save money in many ways and the charity is able to use the money generated from its sale in many ways too.  Car donation is a very good thing for your bottom line and for that of the charity as well.

The ABCs of Car Donation – L is for Learn

Learn everything you can about the entire car donation process and its benefits to you. First, learn whether you can claim the tax deduction  you will receive for donating your car to charity.  You can only claim the tax deduction if you itemize on your federal income tax return. 

If you regularly itemize on your taxes, you will get a financial benefit if you donate your car. If you do not normally itemize, you should learn whether you will be able to if you donate car. A simple way to learn whether it will make a difference is to re-calculate your previous years’ taxes as if you donated a car. If car donation would have allowed you to itemize on your taxes last year, it probably will this year as long as there are no other major changes in your financial situation.

Next, learn what charities will let you donate your car based on its condition.  Many charities will only accept vehicles that are under ten years old, run and have no significant problems, rust or body damage. If your car does not fall into this category, you only have to do a little research to learn what charities will accept it.

Once you compile a list of charities, learn all you can about them. One of the first things you will want to learn is whether the charity is an IRS qualified organization. If you donate car to an unqualified organization, you will not be able to claim your tax deduction. In general, qualified organizations are 501 (c) (3) organizations. To learn more, see IRS Publication 78. Other things you will want to learn about the charity is their reputation in general, any complaints that have been filed against them, the portion of proceeds from car donations that go toward charitable purposes, etc.

Next, you will want to learn about the entire car donation process. Learn where and how to sign over the title to your car. You are the seller and will need to sign the title in the space marked “seller’s signature”. You need to sign your name as it appears on the title. If there is a lien listed on the title, you need to learn whether a lien release is necessary.

Once you sign the title, you need to learn what to do with it. Some charities ask you to leave it in the car. This is never a good idea. Some will ask you to give the title to the towing service when they pick up the car. Still some charities will ask you to mail the title to them. They ask that because it is safer for you to have it in their hands rather than those of the towing service.

You also need to learn what to do with your license plates. Most states require you to remove them.

Finally, learn what type of documentation you will receive from the charity. If your car is sold for more than $500 the IRS requires the charity to provide you with IRS Form 1098-c.

The more you learn about car donation the smoother the process will be for both you and the charity you donate car to.

The ABCs of Car Donation – K is for Knowledge

Knowledge is power even when it comes to car donation. The more knowledge you have about the car donation process, the better decision you will make about whether to donate your car and what charity to donate car to.

The answer to the question of whether to donate your car is determined by your motivation for donating it. If your motivation is simply to help the charity, the answer is of course; donate car.

If your motivation is get a tax deduction you will need to gain some knowledge about what the tax deduction is and if will you be able to claim it. To claim the tax deduction, you will need to itemize on your Federal tax return. That means you will have to file Schedule A. Your actual benefit from your car donation is determined by the tax bracket you are in. For example, if you are in the 35% tax bracket, your actual benefit is 35% of the amount you claim for your car donation.

There are several things that will determine which charity you donate car to. One of them is the mission of the charity. There are a very wide variety of charities that accept vehicle donations. They include international and national charities as well as state, regional and local ones. Their missions range from conducting research on many diseases and afflictions, to helping those who are afflicted, to animal rights issues, to environmental issues, to programs for young people, to care for the elderly, disabled, injured or abused, to local food banks, homeless shelters, hospices, etc.

Once you determine the mission you wish to support, you will want to obtain some knowledge of their efficiency, effectiveness, reputation, etc. There are a number of ways to can check them out. Some of the places you can check are Charity Navigators, the Institute of Philanthropy, GuideStar, etc. If the charity you are checking on does not have a good rating, those guides will show you alternative ones.

Once you have narrowed down you choices, you will need to gain some knowledge about their car donation process. One thing you will want to know is whether they handle donations themselves or use the services of a car donation center. Many use a car donation center. One reason they do is because the vast majority of donated cars are sold. There is a certain level of expertise required in operating a car donation program. It requires the knowledge of the rules and regulations involved in the sale of vehicles, the transfer of titles, what to do with the license plates, etc. These rules and regulations vary by state. Many charities prefer not to use their resources for this and often find it to be more cost effective to use a car donation center.

Next, you will want to gain some knowledge regarding the qualifications the charity has for accepting a vehicle. Many prefer to only accept those cars that run and are less than ten years old. Other charities accept vehicles in virtually any condition as long as they have not been stripped of their parts and are in a location from where they can be towed.

The more knowledge you have regarding the intricacies of car donations, the more you will know whether and where to donate your car.

The ABCs of Car Donation – J is for Joyful

Car donation is a very joyful thing when it is done correctly. To make it a joyful experience, you simply need to follow the instructions given to you by the car donation charity. Those instructions are designed to make the entire process joyful for both you and the charity.

They will include the details on where and how to sign over the title as well as what to do with the license plates for the vehicle. The instructions will vary by the State the car is located in and where the car is parked. For example, if your car is parked on the street you may need to be there when the tow truck arrives. If you car is parked in a driveway, you may not need to be present as long as you let the towing service know where the car keys are.  Following these instructions will ensure that the title is joyfully transferred out of your name and will help to prevent you from receiving any unpaid traffic tickets which may be acquired by the next owner of your car. It is joyful for the charity since they will not have to deal with any title or ticket issues which could delay the sale of your car.

When you donate your car to charity, they will be very joyful because the revenue generated from the sale of your car donation will help them to further their mission. Those that benefit from the programs of the charity will also be joyful to receive that assistance. The poor economy is putting a lot of strain on charities to provide more assistance.

When you donate car to charity you will receive a joyful tax deduction. You will also be joyful because you will free up space in your yard, and not have to pay anymore for the car insurance, registration fees, inspection fees, etc. In fact, you may get money back for any unused insurance or registration.

Most charities are very joyful to let you donate car that is old, no longer runs, has a lot of body damage or needs a lot of mechanical repairs. That makes it joyful for you since you will not need to make any repairs to the car to continue to drive it or to get it to pass inspection or to be able to sell it.

When you donate car to charity, you will be joyful to know that your car donation will help to support a very good cause. You will also be joyful when you see the wide variety of charities you can donate your car to through Cars4Charities. They represent charities that provide international aid, or support research on many diseases and aliments, or help young people, or assist people or animals who have been abused or who are injured, sick or in need of food and/or shelter.

To donate car, just go to the Cars4Charities website, http://www.cars4charities.org/ or call them toll free at 1-866-448-3487. They will joyfully provide you with all the car donation details.    

The ABCs of Car Donation – I is for Investigate

Investigate the charity or car donation center you are thinking about donating your car to. All charities and all car donation centers are not alike. As with everything is life, there are some good ones and there are some unscrupulous ones. You will not know if you do not investigate them. There are some relatively easy ways you can do that.

Before you donate your car to a charity or a non-profit car donation center, you should check out their tax filings by simply logging onto irs.gov. Once you do, click on the charities and Non-Profits tab and then the Search for Charities button on the left. You can also check them out through sites like Charity Navigators, GuideStar, etc. You should also check with the Attorney General’s office for your state to see if any complaints have been filed against the charity. In 2010, the New York State Attorney General launched an investigation into several alleged “scam” car donation charities in the New York City area. One of them was actually shut down because it used less than two percent of the money from car donations for charitable purposes.

The other thing you should investigate is the tax deduction you will receive when you donate car. Most charities sell car donations because there is too much liability involved in giving a car to a needy person or selling it to them at a really low price. In addition, charities rely on the proceeds from the sale of car donations to help them fund their mission.

If the charity sells you donated car, you can claim the greater of $500 or the amount the charity actually sells your car for. To maximize your tax deduction, you will need to investigate how the charity or car donation center will sell your car. Some charities sell all car donations to the same vendor. This is never a good idea as the more competition there is the higher the sale price is likely to be.

Other charities auction all cars. This is a good thing if the donated car is in decent shape. However, if the car needs repair or is in poor condition, it may not bring the best sale price. The reason for that is because the buyer has to pay a fee to enter the auction and another fee to purchase a car at the auction. Buyers often take these fees into consideration when bidding on vehicles.

Often, the best sale price comes from using multiple vendors for selling donated cars. Here’s why. If the donated car is in good condition, it makes sense to sell it at auction so that more buyers are allowed to bid on it. If the car is in fair condition, selling it directly to a used car dealer may bring the highest price since they may be willing to pay more money for the car to avoid the fees charged by the auction facility. If the car is really in poor condition, a parts yard may be willing to pay top dollar for it so that they can re-sell the useable parts and the scrap metal from the car.

Investigating the method the charity or car donation center will sell your car for will help you determine whether they will get you the best tax deduction for your donation.