Donate Car Charity
Charity Navigator, our primary purpose is helping America’s donors make informed giving decisions when they part with their hard-earned dollars by writing a check to charity. In recent years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2000, nearly ¾’s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.
As America’s car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these 10 Charity Navigator Tips For Charitable Auto Donations, you can minimize that risk, and maximize the amount that actually gets to charity.
Donate Car Charity
1. Find a Charity That Directly Accepts Car Donations
If at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car’s value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It’s possible that the charities you already support have a car-donation program that you don’t know about. Check with them first.
If at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car’s value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It’s possible that the charities you already support have a car-donation program that you don’t know about. Check with them first.
Donate Car Charity
2. If Your Charity Doesn’t Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You Respect
Remember that you’re still making a charitable donation, and don’t simply give your automobile away to any charity, just because they’re a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.
Remember that you’re still making a charitable donation, and don’t simply give your automobile away to any charity, just because they’re a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.
Donate Car Charity
3. If It Runs, Drive the Car to the Charity
Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization’s programs. If you can get the car to them yourself, do it.
Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization’s programs. If you can get the car to them yourself, do it.
Donate Car Charity
4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to Charity
The IRS does not require the car donation agencies to contribute a set amount of the auto’s proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don’t want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.
The IRS does not require the car donation agencies to contribute a set amount of the auto’s proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don’t want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.
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