A Short Guide To Car Donation

30 October 2017
 Categories: , Blog

If you have an extra car that you are thinking about donating, then you'll want to read this short guide so you know what things you should be aware of. This will help you to successfully donate the car without any issues arising that may surprise you.

The charity may use your car in different ways.

If you are thinking of donating your car to charity, you may think that the charity will give the car right to a family in need. While this may very well be the case, they may also sell the car for a profit and then use the money from the sale of the car to put toward their charity. They may do other things with the car, such as offering it as a raffle prize in which the earnings from the raffle go toward the charity. No matter how they use your car, you can feel good knowing that you have given your car to an organization who will be using it to help others in one way or another.

There are some things you should understand about tax deductions.

If the charity that you donate your car to ends up using it for their charity operations or they give it directly to a family in need, then your tax deduction will more than likely be based on the fair market value of the car. If the charity sells the car for money that they will put toward their organization, then the amount of your tax deduction may be based on the amount that they sold the vehicle for.

Driving a car to the charity may be best.

If you can drive the car to a charity like Action Donation Services, then you can save them the fee for having it towed. This means they will be able to keep more of the money they have to go toward their charity's needs. Make sure you are given directions on where to donate the car and not directions to the home office, which may not be the proper place for car donations to be taken.

Keep documentation on the car.

Make sure you take pictures of the car and keep copies of receipts for any aftermarket upgrades, new tires, or anything else that can increase its value so you will have this information if you need it in the future for your tax purposes or for other reasons.