Some tips and hints on how to donate your car to charity - Part 1

Dec. 7, 2010 - PRLog -- Some tips and hints on how to donate your car to charity


You might be deciding it's time to donate your car, or vehicle to charity, which might keep you from the hassle of selling your car (while getting a bonus by being able to claim a tax deduction). At times, it's just not that simple. Donating your car is a great idea, but you have to make sue to do a bit of research before you dive in. Before taking the plunge and donating your assets to just anyone, consider the following:

To begin, you should avoid middlemen, i.e. for-profit organizations that claim to help you with your car donation. The problem sometimes with organizations such as these is that they tend to pocket 50-90 percent of the car's value and, ultimately, the charity doesn't get much of what they could have gotten from the donation. To avoid having this happen, you should contact your favorite charities directly and find out if they will accept your car donation.

Additionally, find a charity you believe in and support. Finding a reputable charity is, of course, important, so do a little homework before making  a commitment. A good place to research a charity is online at sites such as Charity Navigator.

Also, ask questions about where your money will go and how your money is being allocated. If you are using an intermediary and they only give charities flat fees, your donation may not even be eligible for a tax deduction - that is something you definitely want to avoid!

Next, make sure the charity is an IRS-approved 501(c)(3) organization. Also, if it a religious organization, it qualifies, but you should check first.

Finally, deliver your car donation yourself. If you have someone pick up your donation, the charity will possibly have to pay someone to pick it up for you, when what you really want to do is maximize your donation (and your benefit).

In our next segment, we'll discuss the next steps in getting the tax-deduction you deserve.

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The Songs of Love Foundation is a national nonprofit 501(c)(3) organization that creates free, personalized, original songs to uplift children and teens currently facing tough medical, physical or emotional challenges.