If you missed out on Cash for Clunkers, don’t despair! There are still many ways you can get rid of your clunker and help some great charities at the same time.
While many people don’t think of donating their used car, it’s a great way to give back to your local community. And although you won’t get a $4,500 rebate off a new car, most car donations are tax deductible and your donation will support a wide array of deserving charities.
But donating your car is not as simple as it seems. There are a number of things you should do before you hand over your keys. If you are interested in donating your car, here are a few tips to help you get started:
1. Find an Organization You Trust
There are many organizations that accept donated cars, however, before you hand over your keys, it is important to do some research. Find an organization that supports a charity that you would most like to support. Sites like Free Charity Cars often support a diverse portfolio of charitable projects ranging from sustainable farming to eliminating homelessness. Other sites such as Cars 4 Causes also support charities for animals and patients with serious medical conditions. If you prefer a more local charity, some local Salvation Armies may have car donation programs and will generally tow your car for free.
2. Find Out How the Donated Car is Used
Once you donate a car, it can be used a variety of ways. If the car is in working condition, sometimes the charity sells the car or will give the car to a deserving recipient. If a third-party broker is involved, the charity may only receive a portion of the resale price of the car or simply a flat free. It is important to find an organization that can benefit the most from your donation.
3. Verify The Organization is Tax Exempt
Before you donate your car, verify the organization you are donating to is tax exempt as a charity under section 501(c)(3) of the IRS code. You should check the IRS database (http://www.irs.gov/app/pub-78/ ) to make sure the charity is eligible to receive tax deductible contributes. Keep in mind that while donations to a church are tax deductible, churches are often not included in the IRS database.
4. Keep Detailed Records
For tax purposes, you should take a photo of the car and keep copies of estimates for your used car. If your car is worth more than $5,000, you will need to get a written professional appraisal. Once you donate your car, you should keep any proof that you made a charitable gift. It may be smart to transfer the title of the car to the charity and keep a copy of the document.
For more tips on donating your car, you can visit the Better Business Bureau.
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Very good points made here! If you are in the San Francisco Bay Area, you should consider looking at Car Donation Services (www.CarDonationServices.com). Since the laws changed that only allow you to receive market value for your donations, they get top dollar for them as opposed to just sending them all to auction. Plus they do all the work (towing, paperwork, etc..) so all you have to do is pick your charity!
Cars4Charities offers hundreds of respected charities for you to donate your car to. They are a 501 (c) (3) charity so you can donate a car with confidence. When you donate car, you’ll get a tax deduction of at least $500 and your car donation will help a needy charitiy.