Donate your used car to charity
KEY POINTS
1. Donating a car could be one of the least cost-effective ways to aid a charity, says industry expert.
2. The car-donation industry is riddled with fraud and deception, with multiple states investigating outfits for false advertising and self-dealing.
3. These eight tips can help donors protect themselves while trying to help out others.
The biggest winner in the car donation process is usually the donor and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, then you can maximize the amount that actually gets to charity and minimizes your risk of an IRS audit.
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Is it worth it to donate your used car to charity?
To answer this question, we have to expand it to two questions. First, is it worth it to the person donating the car? And second, is it worth it to the charity receiving the car?
It's easy to assume that donating a jalopy is easier than trying to sell it. And, the thinking goes, even though a donation won't result in a pocketful of cash right away, it'll pay off at tax time when the donation results in a bigger tax refund. Unfortunately, that's not necessarily true.
The IRS is taking a harder look at vehicle donation deductions to make sure taxpayers' paperwork accurately reflects their donated vehicles' value. In the past, taxpayers who donated vehicles got to claim a deduction based on the car's fair market value, but these rules have become more complicated.
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HOW TO DONATE YOUR CAR
1. Complete our donation form
2. We’ll be in touch within 3 business days to confirm your details and arrange the collection
3. Remove the number plates before your collection
4. Our tow trucks will come to collect your vehicle (you don’t have to be there) and take it to our auction partner Manheim for auction
5. We’ll send you a tax-deductible receipt within 8-12 weeks to thank you for your donation. Too easy
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Car Donations Sponsor Libraries For Slum Schools in India.
Car Donations Sponsor Values Based Libraries to Indian Slum Schools
We are often asked by car donors what their car donation is helping to support. The Values in Education library sponsorship program in India is an example of a wonderful project which has been made possible thanks to the generosity of those who donate their old or junk vehicles to Donate a Car 2 Charity. These libraries aren't just any libraries either.
Each Values in Education library is a complete Morals Based Curriculum Library have been and continue to be used to teach core values and morals to over 20,000 underprivileged and slum children throughout India. In addition to the library donation, Activated Ministries sponsorship enables the VIE team to host workshops for teachers, care-givers, parents and social workers to teach them how to best utilize these unique libraries.
This is something you make possible whenever you choose to donate a car to our program.
Thank you for playing a part in making this and other such programs possible.
There is a fairly good market of used car sales in India
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Donating a car to charity
1. People are always advised to ignore the brokers as they might give lucrative schemes but the car will not be delivered to the person in need. While donating a car, direct deals are always beneficial as these middle parties keep half of the vehicle's value to themselves only.
2. One can search for a worthy charity for vehicle donation through the internet or enquire in the local market. If the work is to be done for the purpose of goodwill, then it should be done properly so that the maximum benefit is going to the agency in need.
3. In order for a person to qualify for tax deduction on car donation, he/she must first check if the recipient charity is registered by the Internal Revenue Service (IRS) or not. Be it a church or a charitable trust, people should first examine the background of the same and then only go ahead for vehicle donation.
4. The IRS decides certain limit on goods being donated to a charity. If the amount while donating a car exceeds the limit, then the required papers and documents for the deal have to be submitted in order to avail tax deduction. After giving the car for donation, all the valid papers must be signed with the consent of all the parties involved.
5. It is also recommended that while donating a car to the charity, its delivery must be made with by the users only and the same shouldn't be asked by the charity. This will increase the profit of that concerned agency and it would not have to pay any vehicle transporting firm to pick up the car and deliver it.
6. After all the procedures of car donation have been completed, people should always re- title the vehicle from their name to the name of the charity. This process benefits the real owner during later stages if by chance the vehicle has been used for illegal purposes or has been given a ticket for not following traffic rules.
Reasons to Donate Your Car to Charity
Why Donate
1. Avoid the hassles of selling the car yourself. You won't need to pay for newspap
2. Free pick-up. Many charities that accept cars will collect and tow them away for free. But you do need to realize the charity will deduct this cost from the car's value, which will reduce your tax deduction. Of course, if towing amounts to a significant percentage of the car's worth, you can always drive it in yourself.
3. Get rid of a car that does not have proper title. Some charities will take a car for which you cannot find the title. They probably will only be able to sell it for scrap or parts, reducing the value of your deduction, but at least you can get it out of your driveway and can avoid the expense of replacing that title.
4. Help a charity whose work you believe in. Maybe that seems obvious (most of us make donations to charities whose work we support), but it's true.
5. Provide a vehicle for the charity to use. As long as your car is useable, many charities can make good use of it: delivering meals to the elderly, taking people to doctors, or anything else that furthers the charitable mission. Some of your best choices for charities that actually use donated cars for their activities include the United Way, Goodwill and the Salvation Army. On the local level, think about community colleges and vocational schools; their education programs use donated cars to train mechanics.
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