Instead of dealing with the hassle and headache of trying to sell that vehicle, you might be thinking to yourself, “maybe I should donate my car.”
You might have an old car sitting around your house that is just taking up space. Maybe it doesn’t run as well as your newer car, or perhaps it’s just not needed anymore.
Why Donate Your Used Car
There are plenty of reasons to consider donating your used car. Many charities and non-profit organizations benefit from these kinds of gifts. In some cases, the organization needs vehicles to help maintain its mission. For example, a charity that delivers food to the elderly can benefit greatly from adding a car to their fleet.
Other organizations will sell the car and use the proceeds to help fund their mission. There are even schools that use donated cars as hands-on textbooks for their auto-mechanic programs. These kinds of schools rely on car donations to improve student education and exposure. The cars are then either sold or donated to people in need.
Beyond supporting a local charity, your car donation can also earn you a credit on your taxes come April. You can deduce the fair market value or final sale price of the car. Make sure to work with the charity to obtain the correct paperwork and guidance on how to best utilize your potential tax credit.
The best part is that reputable charities and non-profit organizations can help make donating your car extremely straightforward. They may be able to transfer the title on site, arrange to pick up of your car and help with any necessary paperwork.
How Do I Donate My Car?
The simplest way to donate your car is to just call the charity of your choice and ask about their procedures for car donations. Of course, there is more to consider than just picking any random organization in your area. Sadly, there are groups that take advantage of people looking to make a difference.
While donating your car to a charity is generally safe, you want to make sure that your gift is going to good use. Start by making sure that the charity or organization you choose is actually a federally-recognized non-profit organization. That’s to say that there aren’t amazing for-profit or not-for-profit organizations out there doing great work. The reality is that you can’t claim the deduction on your taxes unless you donate to the appropriate non-profit entity.
If you find an organization that seems too good to be true like they make claims about how you can claim any amount on your taxes, be careful. In the past, people would take advantage of the tax rules and deduct an inappropriate amount for their car donations. The IRS has tightened its rules so that you can only claim the car’s fair market value or sale price. It’s worth taking some time to explore charities in your area to determine who would best benefit from your donation. Find an organization with a mission you support.
Make sure you get an official receipt from the charity. You’ll need this for your taxes and records in general. Don’t forget to remove your license plates once you’re no longer driving it and sign over the title to the organization. Some places can do this on-site or at least help you through the process.
Donate My Car The Easy Way
There’s no real trick or special sauce when you are ready to act on the thought to donate my car. Find an organization that you support, and that helps with the process. Make contact and follow their procedures, and that old car will be out of your way in no time. You’ll not only have the feeling of supporting a local mission, but you can earn a nice tax deduction. It truly is that easy.