Car Donation the Good, the Bad and the Ugly

There are some very good car donation charities available to select from, and some not so good ones. If you are thinking about donating a car, you will need to do some research before you hand over your car keys. You will want your chosen charity to get the most from your car donation proceeds as possible. You also will want to make the donation go as smoothly, quickly, and professionally as possible.

Many charities use a car donation center to handle their car donations for them. Most of the centers are for profit centers. Some keep most of the proceeds from the sale of donated cars and send a very small amount to the charity. For profit companies do not have to have their books audited. You will have to do your homework to find out what portion of the sale of your car the for profit company gives to the charity you have chosen and how much they keep for themselves to operate their center.

A few car donation centers are non-profit charities, also known as 501 (c) (3) charities. These non-profits are recognized by the I R S. These centers share a larger portion of the revenue with the charity and since they are a charity, themselves, cannot make a profit. In addition, they are scrutinized more closely by the government and the IRS. Most are required to have their financial statements audited annually. You can check out a non-profit charity at irs.gov.

Another factor in the car donation process is the type of car that will be accepted. Some charities only accept a car that is less than 10 years old, runs, and needs little or no repairs. Some will take the good, the bad and the ugly with very few questions asked. Others are in between.

In addition, the amount of your tax deduction depends on what the charity does with your car donation. If you donate car that is in good shape, some charities will use it themselves or give it to a person in need. In this situation, you can claim the fair market value of your car as your tax deduction. There are very few charities in this category. The reason is simple; there is too much liability involved. Most car donations that are in good condition are sold at auction. In this case, the donor can claim the sale price of the car as their tax deduction or $500 whichever amount is greater.

If you donate car in the bad or ugly category, almost all charities will sell it. If that is the case, again your tax deduction is the greater of $500 or the sale price of the car. As always, you should consult with a tax advisor for assistance with determining the amount you can claim for your tax deduction.

All car donation centers are quite different. There are many variables in their structure and their procedures. Before you donate your car to charity ask some questions and do some research to separate the good, the bad and the ugly! Then choose http://www.cars4charities.org/ (1-866-448-3487) as your final choice. They have the best reputation for getting the most money for your used car donation. They have an extensive list of very reputable charities you can choose from to donate car to. Your car donation will be picked up fast and free of charge and you will become eligible to receive a valuable tax deduction.