Car Donation Programs

Posted by Ray Lam

There are more than 100 notable vehicle donation programs across the United States, most of which are initiated by specific organizations or associations. Almost all these programs offer services to make the donation procedure simple for you. They will handle everything from free pick up to offering you a list of charitable or non-profit organizations for you to choose from. They also provide documentation for tax purposes and handle any problems that may arise in the course of getting proper documentation for your vehicle.

Finding a car donation program should be fairly easy as there are many charities that set up this kind of donation. Many charities will come to your home and remove your old car with no out of pocket expense to you. There are very little restrictions when you look for a car donation program to utilize your old car for the good of others. Most charities that run a car donation program only require that you have four inflated tires.

The IRS itself, in recent years, has become alarmed at the proliferation of car donation programs run by fundraisers which end up keeping the bulk of the proceeds they receive for donated cars. The IRS recommends that it you are considering any of the car donation programs, you contact the people running it and get a clear answer as to whether they are charity officials, or private group acting for the charity.

If you find that they are a private group running the car donation programs of several charities, find out exactly what they plan to do with the car you donate. Will the car be repaired and given to the charity to help in its work? Or do the fundraisers intend to auction the car off and if so, how much of the proceeds will go to the fundraisers, and how much to the charity?

Legitimate car donation programs greatly simplify the process of connecting you with a charity which will benefit from your gift. But it’s your responsibility to research the various car donation programs in you area and ensure that as much a possible of your car’s value will be channeled to the charity, and that the charity itself is one recognized by the IRS. Otherwise, your well-intended car donation may turn into a big problem at tax time, when you attempt to take an unwarranted deduction!

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Tags: Automotive

Under Automotive Tags: Automotive