Nearly everyone wishes to have all the comfort and luxuries of life, but not everyone’s life is the same. There are some people who are affluent and can afford anything they wish to have while there are many people who are not that financially strong and work hard to make ends meet. Well, apart from the two classes, there is also a class of needy people who require donations and charities for a better living.

Giving donations is a vital activity that nearly everyone who can afford must perform. There are millions of people who give donations for various charity organizations and causes. Many people think that only giving money counts as donation well that is not true as you can give anything of value for donations which include cash, any goods such as clothes, toys, or food items. Another popular form of donation is giving you to a charity. Gifting the used car to a charity organization has become a common activity for people who want to dispose of their automobiles because it gives them a tax benefit. 

Donating a car is an easy and simple process. If you want to help someone but not have the financial means, then you can easily do it by donating a car that you do not need. If you have a classic model car that is collecting dust or a car that is costing you money in terms of repairs and fuel consumption, then you should donate that vehicle. There are a wide range of automobiles that can be donated such as cars, trucks, vans, motorcycles, SUVs (Sports Utility Vehicles), ATVs (All Terrain Vehicles), or trailers. 

The charity organizations might use your donated vehicle as a transportation vehicle to transport volunteers or goods to a specific area. The charity organization may also repair and remodel the car and sell it for profit and then distribute that money to the needy people. The car should be donated at the fair market value so that it makes it easy for taxpayer paperwork that correctly shows the value of the vehicle. If you are wanting to give your car for the charity then the first step is to research the charity organizations as many fraudulent organizations may take the donation but not help the needy people. The considerations you must make before choosing the best car donation program are 

  • Research the charity organization, you plan to give your car. If the organization is not authorized by the government, then your donation would not be tax deductible.
  • You can evaluate different charities through Charity Watch which rate the numerous charity organizations based on their performance and reputation
  • You need to itemize the deductions on your return if you want to get a tax benefit for donating your car. There is a limit or fix amount that you can claim. There are three situations that the taxpayer can deduce the market value of the car which are the charity may use the car for its own use, the charity can donate or sell the car to a needy person, and when charity shows the proceeds from selling the car.
  • One of the most important thing for you is to get a receipt from the charity organization, which shows the amount of money that the car was sold or donated. A charity organization is liable to provide the document or receipt within 30 days. 
  • You should drive the car yourself and drop it off. You should also sign over the title of the car to the charity organization and ensure that the representative also signs the title. A proper exchange is necessary to secure the donation process and remove any misunderstandings. 
  • You should take pictures of the car before handing it over and also take pictures of the receipt to keep it as a record, and it also helps when you would be making a tax deduction

Charity organizations usually have sales locations where the cars are evaluated. The auction houses are used to sell most of the donated vehicles. The main emphasis or goal is to ensure that the charity or nonprofit organization receives a maximum amount of money so that the needy people can be helped. Once you donate your car, after 30 days you will receive a Thank You letter that you can use it as a tax receipt. Donating your car is the first step in forming an association with a charity organization and growing this association. You can become a regular member of the charity organization and get updates on all the charity campaigns where you can participate and also ask others to donate as well. 

The charity organizations provide wide range of plans, tools, and campaigns that make people more aware of the car donation program. You should always look for charity organizations that are efficient and send more than 70% of their proceeds to the helpless and needy people.