If you want to give your car to a charity, big charities have easy steps on their websites to help you. You usually just need to fill out a short form. For smaller charities, you might need to call them to find out how to donate.
Before you reach out to the charity or program, there are some things you need to do first.
Be careful: If a charity tells you to leave the buyer’s name blank when you sign the title, don’t do it! Find another charity instead. Leaving it blank could mean you’re responsible if something bad happens with the car.
Be careful with programs that let you donate your car but want to take your money first. These programs might keep more money from selling your car than ones that are not trying to make a profit.
Charities usually like to take things with wheels that they think they can sell, like tractors, snowmobiles, and golf carts. The IRS (which is a government group) says that if you want to get a tax benefit for giving away a car, it has to be made mostly for driving on regular streets and roads. Boats and airplanes also count. If your vehicle doesn’t fit this description, it can still be donated and might help with taxes, but there are different rules for those types of vehicles.
If you want to buy a new car and have an old one to trade in, you might get more money back by trading in your old car than by saving on taxes. Check how much your old car is worth when you trade it in and find out how your state calculates sales tax. If they take the price of your old car off the price of the new one before figuring out the tax, it could be a better deal for you.
Giving away things like cars instead of money can sometimes make the people who check taxes (like the IRS) want to look more closely at your taxes. So, if you give away a car, make sure you know the rules about how to write it down on your taxes and keep all the important papers to show it.
Where are we headed?
If you look online, you can find some local charities that will happily take your donation. There are also some big organizations across the country that accept donations of cars.
Vehicles for Change uses donated cars to teach former inmates how to fix cars. This training helps them find jobs after they have served their time in prison, and all the people who finish the program get jobs in the car industry. Advanced Remarketing Services partners with groups like the American Cancer Society and Habitat for Humanity. They not only take car donations but also run a business that helps recycle and sell cars. Charitable Adults Rides & Services (CARS) teams up with many charities, including well-known ones like St. Jude Children’s Research Hospital and the Sierra Club Foundation. If you want to donate to a charity that isn’t listed, you can ask CARS to add it. The Car Donation Foundation works with organizations like Make-A-Wish, groups that help veterans, and animal rescues like Muttville Senior Dog Rescue. They help families and veterans by giving them cars if the car you want to donate still runs well. In short, giving away a car can help both a charity and the person donating it. But whether you get more than just a good feeling and extra space in your garage depends on how you do your taxes.
Charities really like when people donate their cars, and they often get help from other companies to make it simple. Knowing the rules and details can help you decide if giving away your car is a good choice for your money and budget.
The article talks about some organizations and companies just to help you learn, not to say that we like them or think they’re the best.
