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.

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 ABCs of Car Donation – G is for Good

There are good car donation centers and there are some not so good ones you can donate your car to. In 2010, the attorney general for New York State launched an investigation into several possible “scam” car donation charities in the New York City area. One car donation center was actually shut down because it used less than two percent of the money from car donations for charitable purposes.

You can easily find out whether the car donation charity you are thinking about donating your car to is a good one or not a good one. You can check them out through the attorney general’s office for your state. You can also check them out through the internet. With all of the really good car donation centers out there you can donate car to, there is no reason to choose any center that is not good.

Once you do find a good charity to donate car to, you will feel good about your decision. Your car donation will do a lot of good as well. If your donated car is in good condition, the charity may decide to use it themselves for their own charitable purposes. They may even decide to sell it to a person in need at a greatly reduced price or even give it them.

If your donated car is not in good condition, but is easily repairable the car donation center may repair it before they sell it. If your donated car is not easily repairable, the car donation center will sell it as it is. You can still feel very good about donating a car that is rusted or is basically junk. Since the price of scrap metal is up, the charity will be able to sell it for good money.

Most car donation centers sell all donated cars in the condition they are donated in. They do it because it is good for them. It is good for them because they do not have the expense of making repairs, they do not have any liability issues and they get the cash for the cars quicker. Improving their cash flow is a very good thing for the charity.

Another good thing about car donation is the good tax deduction you will get when you donate car. In general, your good tax deduction will be the amount the charity sells your donated car for or $500, whichever is more. However, if the charity uses your car, sells it to a needy person for an extremely low price or gives it to them, your good tax deduction will be the fair market value of the car.

There are a great many good things about car donation. You get rid of a car you no longer want or use. That alone is a good thing. The charity you donate car to will either put it to good use or get some good money for it which will help them do good things. You will also get a good tax deduction when you donate car. Car donation is truly all good.

The ABCs of Car Donation – F is for Free

When you donate your car to charity, you will be free from many things.  You will be free from the hassle of dickering with the car dealer over the trade in amount of your car. According to most auto buying guides, not having a trade in will free you up to negotiate a better sale price on the purchase of a new car or quality used car.

You will be free of the cost of having to advertise your car for sale in the local paper or on line. You will be free in any costs involved in repairing your car to make it easier to sell. Most charities will gladly let you donate car that needs a lot of work or does not run.

You will be free of the inconvenience and risks of having to wait for strangers come to your home to look at your car. You will be free of the aggravation of having those prospective buyers offer you a low ball amount for your car. Since you will not have to wait for prospective buyers to call or visit, you will have a lot more free time to do other more important things.

If your car is in really bad shape and does not run, you will be free from the cost of having a junk yard come to haul it away. You can donate your car to charity even if it is junk. The call to the charity is also free. Once you have everything is coordinated with the charity, they will dispatch a tow truck to pick up your car. The pickup of your car is another thing that is completely free.

Once your car is picked up, you will have a lot more free space in your garage or driveway. You will also be free of any more car insurance, registration, inspection, licensing fees, etc. In fact, you may be due a rebate on some of the fees you have already paid.

When you donate car to charity, you will receive a free tax deduction on your itemized federal income taxes. In most cases, the amount of your tax deduction will be the amount the charity is able to sell your donated car for or $500, whichever is greater. The charity will indicate that amount in the tax paperwork they send you. That paperwork will, of course, be free.

Finally, the best free thing is the wonderful feeling you will get knowing that your car donation will be used to help support a very worthy cause.

The ABCs of Car Donation – E is for Execute

Once you have determined what charity you want to donate your car to, you have to execute the transfer of your car and its title to the charity. With respect to the title, make sure you fill in the correct odometer reading and sign your title in the correct location. You are the seller, the charity is the buyer. Therefore, you have to sign it in the place marked “seller’s signature” If your car is titled in the states of Arizona, Kentucky, Louisiana, Montana, North Carolina, Ohio, Oklahoma, Pennsylvania, or Wyoming, your signature on the title has to be notarized. Do not sign the title in the “re-assignment by licensed dealer section”. If you are not sure where to sign it, find out from the charity or your local Department of Motor Vehicles.

You also need to make sure you sign your name the way it appears on the front of the title. For example, if the title is in a maiden name, the signature needs to be as well.  The exception to this occurs when the title is in the name of someone who is deceased. In this case, the title should be signed by the executer of the estate. In addition, you will need to provide a copy of the death certificate and a copy of the will or power of attorney.

If you make a mistake on the title, DO NOT scribble it out or use correction fluid. If you do, it will void your title and you will have to get a duplicate title before you can donate car. If you make a mistake, put one line through it and sign either above or underneath it. You can also use an affidavit of correction.

Next, fill in the name of the buyer. That name will either be the name of the charity you are donating your car to or the car donation center representing them. DO NOT leave the name of the buyer blank!

There are basically three ways to deal with the title. You can simply leave it in the car, you can hand it to the tow truck driver or you can mail it to the charity or the car donation center. DO NOT leave the title in the car! This may seem like the most convenient method, but it also has the most risk. If you leave the title in the car and the tow truck driver does not leave you a receipt, you will have no proof of your car donation. Leaving the title and the keys in the car is also an invitation for someone to steal your car!

Handing your title directly to the tow truck driver is safer, but still has some risk. Most charities do not pickup car donations themselves; they hire towing services to do that. Therefore, the tow truck driver will not be able to examine your title and other documents to make sure they are all in order. Also, most towing services pickup car donations for multiple charities. Therefore, you will need to make sure you get a receipt that is for the correct charity.

Another risk associated with giving the title to the tow truck driver is that they could lose it. This is a major inconvenience for you and the charity. It is for you, since you will probably have to get a duplicate title and the sale of your car will be delayed.  The average cost of getting a duplicate title is $20. It is an inconvenience for the charity because of the delay in the sale of your car. This means that they will not only have to wait for their money, but they may have to pay storage fees as well.

DO NOT hand over your title unless you have the name of the buyer completed.  If you do and the tow truck driver is unscrupulous, they could write their own name in as the buyer and can in effect legally steal your car. This is rare, but it can happen.  

Many people are hesitant to mail their title for fear of it being lost in the mail. Mailing it in a manner that provides you with a tracking number will minimize this risk. Mailing the title to the charity is actually safer for you and the charity. First, once the charity or car donation center receives your title they will be able to tell you if everything is in order before your car is picked up. If there is a problem, they will advise you on the proper way to fix it.

Now that all the title issues are handled, you just have to execute getting the car to the charity. First, make sure you remove all your possessions from the car, including the toll tag, garage door opener, etc. You should also vacuum out the car. This will help it to sell for a higher price, giving you a better tax deduction and the charity more money.

If the car is in your driveway, position it where the tow truck can easily get to it. Make sure all four tires are inflated. If one tire is flat, your driveway may be scratched when it is pulled onto the tow truck. If your car is licensed in any state except, Alaska, California, Delaware, Hawaii, Kentucky, Minnesota, Oklahoma, Oregon, South Dakota, Texas or Washington, you should remove the license plates. You will need to transfer them to another car or return them to the Department of Motor Vehicles so you can cancel your car insurance. If your car is licensed in New Jersey, New York or Pennsylvania, you should scrape the inspection and/or registration sticker off the windshield. This will prevent you from receiving any unpaid tickets issued to the next owner of your car.

If your car is parked on the street, you will need to wait for the tow truck to arrive before you remove the license plates and stickers. If you remove them prematurely, you may receive a ticket.

Car donation is a very charitable act that has many rewards for you and the charity. As always, the correct execution is the key to a successful outcome.

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.