What You Need to Know When You Donate Used Cars

What You Need to Know When You Donate Used Cars

Donating a car to a charity has been becoming increasingly more popular in North America. This is largely in part to the many benefits that donors are entitled to.

When you donate used cars to charity, as a donor you are able to take advantage of many benefits. Let us compare the notion of making a donation out of your used car as opposed to going through the trouble of selling your vehicle:

No loss of time spent going through the trouble of finding a potential buyer

Save money on not having to list your vehicle on various markets
Save money on not having to pay maintenance on a used vehicle
Avoid the possibility of unknown buyer complications
Lend a helping hand to a charity which is important to you
Claim a car donation tax deduction in the amount of the value of your vehicle*

Once you have decided that you want to donate your car, there are some essential pointers to be aware of to familiarize yourself when learning how to donate used cars:

Become familiar with how the IRS (Internal Revenue Service) treats car donation, and the claimed deduction amount based on your vehicle and related laws.

There are many types of charities which accept a used car as form of donation. Start by selecting a charity which contributes towards a cause important to you, or check local and on-line listings for nearby car donation charities. Remember that some educational institutions and non-automotive related charities can still accept car donations. In the case of the latter, the donated automobile will be sold at a car auction, with the sales value going towards the charity of your choice, provided they arrange such forms of donation. Check with proper listings to ensure the charity selected is reputable.
Ensure that whatever type of charity to which you choose to donate, that a proper, written record is kept of the donation. Also be sure to obtain a copy of this record within a month of the date of donation. It will be helpful for claiming the tax deduction.
Often times charities to which people donate used cars will arrange the towing. Before your used car is towed away for donation, be sure to inspect your automobile and confirm it is in good operating condition. Check the tire pressure as flat or low tires can often cause donation process problems.

When it comes to donating used cars, it can be an extremely smooth, rewarding process for all parties involved. Taking the time to learn more about the donation process as well as researching the right type of charity can mean all the difference.

* When you donate used cars for a value of more than $500.00 a proper IRS form must be filed and attached with your annual return. As for cars with a value of above $5,000.00 an appraisal will need to be conducted and written confirmation will be required to process your tax claim.