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Car Donation Tips

Read these 260 Car Donation Tips in 17 categories ranging from Alaska & Hawaii Car Donations to Western US Car Donations. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Car Donation tips and hundreds of other topics. Become a Guru or Become an Advertiser.

Car Donation Services Benefit Donors in a Variety of Ways

What are you looking for in car donation services?
If it is simply speed, convenience and a program that will take an inoperable car, you may want to contact a national clearinghouse that represents a lot of charities.
These companies specialize in collecting just about any vehicle, no matter the condition. The companies will tow away and sell junk cars for their parts.
If you are seeking a charity than can make full use of your vehicle donation, you may have to do a little more work.
Check with your local United Way or Attorney General's Office to find a list of registered charities in your community.
Call the ones that interest you, and ask a lot of questions. Make sure the charity will use the donation for the services you want to support.
You may want to avoid charitable organizations that have high overhead costs for their vehicle donation programs. The high costs mean less money for the charity's programs and services.

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Expect Helpful Service From Charities Seeking Car Donations

Donate Car For Charity Tip: For some people, their car is their most valuable possession. Deciding to donate a car to charity is not an easy step. So you want a charity that provides the best car donation services. Here are services to ask for, and expect, from charities:
-- Many charities will send a driver or tow truck to pick up your unwanted vehicle, or they will have a drop off location in a convenient area.
-- If your car doesn't run, ask for free towing to remove the car from your property. Your only responsibility is to have the tires inflated.
-- Get tax forms from the charity acknowledging your gift and its value at resale. You should receive this acknowledgement within 30 days of the sale.
-- Find application forms online for many charities that have car donation programs.
-- Some charities offer free hotel vouchers as an incentive for giving your used vehicle to their charity.

Make Sure Donating Your Car, Not Selling it, Is Best

Car donation services are appealing because they benefit good causes, but also because they provide a tax write-off for Americans. But understand that the tax write-off may not be the value donors can get selling their vehicles through classified ads. Why? Because new federal tax laws limit the deductions that taxpayers can claim for their vehicle donations.
Look for car donation services that plan to keep and refurbish donated cars to use in their charitable works. The IRS permits donors to take fair market value for their deduction, when charities use the car donation in their programs.
Chances are, though, that the charity will sell your vehicle or its parts at auction, for a lower price than you can get on the market.
Say you think your donated vehicle is worth $1,200, but it sells at auction for $725. The lower amount is what you are entitled to claim as your tax deduction. Before contacting car donation services, make sure that donating your vehicle is the right choice for you.

Follow Rules for Transferring Car Titles

Donate Car For Charity Tip: Car donations require the donor to transfer the title to the charity. A legitimate charity will not allow your to donate a vehicle without the title.
If you lost the title, you can get a duplicate from your local department of motor vehicles. Make sure to copy both sides of the title and retain them for your records. Take responsibility for transferring the title when making your automobile donation.
Assign the title to the charity, not to the towing company that may collect the car, or the fundraiser that is handling the donation for the charity. Make sure you have the correct mileage from the odometer on the title and sign and date it.
If you have any concerns about the transfer, contact the consumer division of your state Attorney General's Office.

Car Donation Services Under Tighter Regulations

Car donation services have become such an industry -- with fundraisers, middlemen and auction houses -- that Congress enacted tighter laws in 2005 to regulate them. The goal was to end abuses in car donation services, where donors were inflating the value of their auto to get higher tax deductions.
There also were reports of individuals and groups, including used car dealers, trying to pass themselves off as charities to get car donations. The tougher laws end a lot of the problems and return the focus to giving. Donors with vehicles valued at more than $500 now must limit their tax deduction to how much the charity gets when reselling the vehicle. Many charities go through auction houses and hire fundraisers to handle vehicle donations. Some charities get a flat fee for each donated vehicle, no matter its value, while others split the proceeds with the for-profit companies that handle the sales.
It makes sense to check with various car donation services to find out what portion of the proceeds from car donations actually go to charitable programs.

Charities Choose How to Spend Proceeds

Donate Car For Charity Tip: Charities that offer programs to donate autos decide how much money in proceeds they want to spend on charitable causes.
Generally, the amount is divided between the charities and the fundraisers that help run auto donation programs.
When choosing a charity, try to optimize the value of your auto donation.
It is routine for charities to resell vehicles donated to them from private individuals.
Ask the charity how much money from auto donation resales actually goes to charitable services and programs. Are those services and programs in the community where you work and live?
Also, confirm the role of the representative at the vehicle donation program. Is the rep a fundraiser with a for-profit company handling charitable car donations, or someone from the charity?
It is common to deal with management companies that handle car donations for charities. It also makes sense to contact the charities directly to learn how proceeds are used from vehicle donation programs.

Appraisal Guide Offers Listing of Car Donation Services

Want a quick look at 300 car donation services in the U.S.? Just click on NADAguides.com and link to vehicle donations. The Web site offers a database of 300 charities that have car donation services. N.A.D.A. Appraisal Guides (nadaguides.com) publishes vehicle valuations on new and used vehicles, including cars, trucks, RVs, motorcycles and boats. The company's Web site offers a thorough guide of car donation services as well as information on valuing your new and used vehicles.

Look to the Office of the Attorney General for information on charities in California.

Donate Car For Charity Tip: The State of California's Office of the Attorney General maintains a current list of all charitable trusts and organizations operating programs to donate a car in California. You can access this list at http://caag.state.ca.us.

Internet Is a Boost for Car Donation Services

The Internet is a giant boost for car donation services. In an instant, vehicle donors can access hundreds of charities that offer car donation services. What kind of information can you find on the Internet?
-- Locate the charity's Web site, and read about its car donation services.
-- Pick a car donation program that handles your community and neighborhood.
-- Determine if the charity is in good standing with the consumer division of your state Attorney General's Office.
-- Fill out application forms to donate your unwanted car to specific charities.
-- Look up the number and location of the nearest branch of the Department of Motor Vehicles. The DMV will replace lost titles.
-- Access and read a charity's annual report.
-- Check the rating a charity gets from various Web-based watchdog groups.
-- Go to the IRS Web site to learn more about the new rules for claiming tax deductions for your vehicle donations.
-- Read news articles and blogs on vehicle donations.

Charities Compete for Car Donors

There are hundreds, even thousands, of car donation services competing for your charitable donations. Take full advantage of the competition to ensure your needs are met when giving. The unwanted vehicle sitting in your driveway may be the most valueable charitable gift you make in a year.
The nonprofit group Network for Good encourages donors to be informed, and to ask questions. This is especially true for car donations, where you may not be sure how your donation will benefit the cause or service you want to support. Unless you ask. Hidden costs for processing cars sometimes leave little for the charity's mission.
Here's some giving advice from Network for Good:
-- Use the Internet as a research tool to find the charity and cause you want to support. Network for Good, for example, offers a free database of more than a million charities. Look up the charities in your zipcode.
-- Ask the charity how it plans to use the proceeds from selling your car donation. Ask to see its most recent annual report, which will show its financial health.
-- Protect your privacy. Ask if the charity shares, or sells, your personal information with other organizations. You may want to tell the charity not to share information about you. Most charities have a policy that allows refusal.
-- Keep your receipts. Expect to get a receipt when you make your car donation, and a second receipt when the car donation is sold. You will need these for tax purposes.





 
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