Some people are fortunate enough to get a new car every few years and are left with the trouble of getting rid of the old one. If fixing it up and putting it on the market seems like too much work for you, why not consider car donating. Many people or organizations would be more than happy to receive a donating car and will certainly put it to good use.
So, if you have a used car that is basically taking up space, consider a car donating charity. There are several options in which you could accomplish the removal of the car from your yard and the transfer to a non-profit charity. Some car dealerships work with local charities in car donating. They will tow the car to their site and make repairs or pay the charity cash for the donated car. This way you can still help a worthy charity by donating a car that doesn’t run.
Establish a direct connection to a charity. Stay away from businesses with car donating advertisements on television or in the newspaper promoting a donation service. Many of these organizations are for-profit and will actually keep a large percentage of the profit for themselves, resulting in only a small amount being passed on to the charity. Charities such as Habitat for Humanity, United Way of America, The VFW Foundation and The Salvation Army all accept and welcome car donating.
Car donating to a charity auction is another way to help a non-profit group. Charities often conduct charity car auctions to raise money for their programs. By car donating to the charity you will receive a receipt for the donation, as most car donating auctions generate large sums of charitable funds. However the donated car must run properly and should offer the right aesthetics to draw a large crowd. You will also receive a receipt for the amount generated by the sale of this car to use as a car donating tax deduction on your income taxes the following year.
Donate the car to a charity that provides cars to the needy. Church congregations usually operate these charities and offer a small amount of compensation for these cars. These cars are then donated to individuals who are unable to afford a reliable method of transportation and have families. You will also receive a receipt just as you would a charity auction.
Check to see if your donation will qualify for a tax deduction. If the charity is an IRS-approved 501(c) (3) organization, you will be eligible. If you aren’t sure, you can always look on the Internal Revenue Service’s website in Publication 78 where there is an alphabetized list of organizations that result in tax deductions if donated to.
Drive the automobile to the drop off location if it still runs. A charity will most likely have to pay to have the car picked up if you don’t deliver it, which will take away from the organization’s funds.
Transfer the automobile out of your name to eliminate the chance of being charged for violations such as parking tickets. The automobile should be re-titled under the charity’s name.
Tips and comments
Obtain a receipt from the charity establishing the value of the vehicle. If the value is over $500, the IRS will want proof.
Attach IRS Form 8283 to your tax return if your automobile generated more than $500 to ensure that you receive the proper return.
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