Donate Used Cars To Charity

Donate used cars to charity and both the giver and the charity will benefit from the donation. The organization gets the benefit of the vehicle, and the donor of the automobile gets the tax break. Many organizations, including schools, churches, and nonprofit charities, accept the proceeds from people who give their vehicles to a worthy organization. Most people first think of trading in their older automobiles for a better price on a newer model. However, if their car is very old or has a high odometer reading, a car dealer may not offer that much for it as a trade-in. It may be financially wiser to give it away for the tax write-off.

Obviously another reason for generosity is to support a person's favorite charity, whether that organization is designed to help a children's hospital, a crisis pregnancy center, Girl Scout troops, or any other worthy cause. Agencies that accept and process the vehicles on behalf of the charities will have a list of those that they have agreements with. If the preferred charity is not yet on their list, speak to a representative at the organization and ask them to contact the agency so that you can donate used cars to charity of your choice.

People who choose to give in this way are advised to consult the IRS publication, "A Donor's Guide to Car Donations." The IRS recommends that the donor check out the agency first. In order to claim a tax deduction for donating, the organization must be a section 501c3 organization. The donor will also need to know the value of the automobile. The maximum dollar amount that a person can deduct is the fair market value of the vehicle, which is not necessarily the same as the "blue book" estimate. In order to take full advantage of the tax benefits to donate used cars to charity, the agency must provide a receipt that the giver will use when filing tax returns.

The process is fairly simple. Contact an agency that processes these types of donations (many can be located online) and complete the simple form. Designate the organization that will receive the proceeds from the donation. Then the agency will contact a local towing company to pick up the vehicle and the title. The entire procedure to donate used cars to charity is typically finished within a day or two. God tells us to give with a cheerful heart: "Every man according as he purposeth in his heart, so let him give; not grudgingly, or of necessity: for God loveth a cheerful giver" (2 Corinthians 9:7). We can find all kinds of ways to give, and donating a vehicle can be part of our giving process.

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