Donate your used car for charity
Charitable donations. All of us could probably afford to give a little more to charity and as it turns out, the process of donating a used car to charity is a very easy and straightforward process. If you have an older car, it might even work out in your favor financially to donate the car rather than try to sell it yourself, largely because of the benefits associated with a charitable donation.
Most charities that accept car donations are willing to take care of all the costs involved. For example, if you were to try and sell your car privately, there is a good chance that you would have to keep the vehicle insured during the process and then if the car is not in perfect working condition, it's perfectly possible that you may incur some rather heavy costs rated to towing and delivery. Tow trucks don't come cheap and these costs can easily build up to a bill of several hundred dollars! After you factor in all the forms and costs involved, you might even lose money by trying to sell your old car.
When you donate to charity, the organization will usually offer free pickup, making the process as seamless and painless as possible for you. Better still, you don't have to deal with the hassle associated with selling a car. No phone calls, no test drives.
And there are significant tax benefits! Donating a car with a fair market value of $2000 results in the exact same tax deduction as providing an equal cash donation. This is assuming that the car is worth at least $500. Typically, charities will take your car and then offer it up for auction. If the final price paid for your car, truck, van, or SUV at the auction is over $500, the receiving charity is obligated to provide you with a tax receipt for this full amount. The tax receipt will include your name and the vehicle's identification number (VIN). It will also note that the donation was at "arm's length", meaning that you are not related whatsoever to the receiving charity.
For any car that sells for less than $500, it will then be up to you to determine what is fair market value. In Canada, they have the Canadian Black Book. In the United States, they have Kelley's Blue Book. These are both good resources to get a ballpark figure, but also look around in the classifieds -- both online and offline -- to get a better sense of what the car is worth. The tax receipt you receive from the charity will not indicate the value of the car if it sold at auction for less than $500. Just be sure you can justify your declared value to the taxman.
There are numerous charities that are willing to accept used cars and trucks as donations. Some of the better known charities include certain Girl Scouts organizations, the National Center for Missing & Exploited Children, the YWCA, and several research-focused organizations.
Perhaps the greatest reason why you should donate your car to charity is the fact that you'll feel good about what you're doing. You've contributed something very significant to your community and that's something to be very proud of.
Most charities that accept car donations are willing to take care of all the costs involved. For example, if you were to try and sell your car privately, there is a good chance that you would have to keep the vehicle insured during the process and then if the car is not in perfect working condition, it's perfectly possible that you may incur some rather heavy costs rated to towing and delivery. Tow trucks don't come cheap and these costs can easily build up to a bill of several hundred dollars! After you factor in all the forms and costs involved, you might even lose money by trying to sell your old car.
When you donate to charity, the organization will usually offer free pickup, making the process as seamless and painless as possible for you. Better still, you don't have to deal with the hassle associated with selling a car. No phone calls, no test drives.
And there are significant tax benefits! Donating a car with a fair market value of $2000 results in the exact same tax deduction as providing an equal cash donation. This is assuming that the car is worth at least $500. Typically, charities will take your car and then offer it up for auction. If the final price paid for your car, truck, van, or SUV at the auction is over $500, the receiving charity is obligated to provide you with a tax receipt for this full amount. The tax receipt will include your name and the vehicle's identification number (VIN). It will also note that the donation was at "arm's length", meaning that you are not related whatsoever to the receiving charity.
For any car that sells for less than $500, it will then be up to you to determine what is fair market value. In Canada, they have the Canadian Black Book. In the United States, they have Kelley's Blue Book. These are both good resources to get a ballpark figure, but also look around in the classifieds -- both online and offline -- to get a better sense of what the car is worth. The tax receipt you receive from the charity will not indicate the value of the car if it sold at auction for less than $500. Just be sure you can justify your declared value to the taxman.
There are numerous charities that are willing to accept used cars and trucks as donations. Some of the better known charities include certain Girl Scouts organizations, the National Center for Missing & Exploited Children, the YWCA, and several research-focused organizations.
Perhaps the greatest reason why you should donate your car to charity is the fact that you'll feel good about what you're doing. You've contributed something very significant to your community and that's something to be very proud of.
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