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 – 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 – H is for Help

If you have a car you no longer want or need, please consider car donation. When you donate your car to charity, it helps in a lot of ways. If your car donation is in good shape, the charity may decide to use it themselves. This helps them tremendously since they will not have to spend money on a vehicle to use. If your car donation is not in good condition or the charity does not need it for themselves, they may sell it.

The sale of your car will help many people. The charity will use the proceeds from the sale to help them further their mission. They may use it to conduct research on a variety of illnesses or issues. They may use it to provide information or services to those inflicted with illness, or they may use the proceeds to provide counseling services or for education. They may also use the proceeds to help provide shelter, food and medical services to needy individuals or animals.

In addition, if your car donation is sold it will help your community. Most car donations are sold through auctions, or directly to used car dealers or salvage yards. Auction facilities charge a fee to sell donated cars. Those fees help them employ more staff. The used car dealers have to repair car donations so that they are road worthy before they can sell them to the public. This helps provide a source of revenue to the dealer as well as the repair shops. It also helps to provide reliable transportation to the public. If your car donation is in poor condition the charity will probably sell it to a salvage yard. The salvage yard will sell all the useable parts from it for a price that is a lot less than the cost of new parts. That will help people who do not have a lot of money keep working by keeping their car on the road. Once all the useable parts are removed from the car, the salvage yard will crush the rest and sell the scrap metal. That will help provide construction materials both here and in other countries.

In a few cases, charities will give or sell donated cars at a greatly reduced price to help a needy person. Usually, they do this so that the person will have adequate transportation to and from work. This helps the person become independent, which in turn helps the economy since they will be purchasing more goods and services. A person who is working is paying taxes instead of receiving assistance from the government. That helps their self esteem and helps all of us taxpayers.

When you donate car to charity, you also help yourself. You get rid of a vehicle you no longer want. That helps to clear your yard. You will also help your wallet when you donate car since you will probably get a rebate on your car insurance, registration or license fees. Best of all, you will be helped by getting a valuable tax deduction.

The ABC’s of Car Donation - D is for Document

Document everything between you and the charity you donate your car to. You will need these documents when you do you taxes or if you are audited by the IRS.  If you cannot provide the proper documents regarding your car donation you may not be able to claim the tax deduction.

If you complete an on line car donation form, print the form. If you speak to someone on the phone, make notes including the name of the person. You should also make a copy of the title to your car and lien release if there is one. It is also a good idea to take some pictures of your car. If the IRS disputes the amount you claim for your car donation, pictures will help you prove your case.

Many car donation centers will ask you to mail your title to them. They ask you to mail the title because it is safer for you to have the title in the hands of the charity rather than those of the tow truck driver. Most towing services pickup car donations for multiple charities. Therefore, it is very easy for them to get the paperwork mixed up and leave a receipt from a different charity. Keeping all the communication between you and the charity actually simplifies the process. When you mail your title, make sure to mail it certified, priority, registered or overnight. That way you will have a tracking number. That tracking number and post office receipt will be a record of your car donation.

If you do decide to allow the towing service to pick up your title along with the car, make sure the tow truck driver signs a statement acknowledging your donation. Never leave the title in the car and let the towing service to pick them up without anyone being present. If you do and the tow truck driver fails to leave a receipt, you have no car, no title and no documentation of your donation.

Whether you mail your title to the charity or give it to the towing service, it is very important to keep a record of the name and phone number of the towing service. That way, you will know who ultimately took possession of your car.

Once you donate car, the charity will send you an acknowledgement of your car donation. Most charities sell donated cars. If that is the case with your car donation, the charity is required to send you IRS Form 1098-c if the vehicle is sold for more than $500. If the charity keeps you car donation for their use, makes major repairs to it before selling it, or gives it to needy person, they are required to send you a letter indicating that. It is very important that you keep the letter or 1098-c form from the charity. You will need this documentation to claim your tax deduction when you file your taxes.

Keeping all the documentation regarding your car donation will also protect you if you receive any notices, etc. from the Department of Motor Vehicles. It often takes States several months to record title transfers in their computer systems. If your car donation is sold in a neighboring State, the title transfer will not be recorded in your States’ system.