We are dedicated to helping underprivileged children of all
backgrounds, whatever their religious, ethnic or cultural heritage.
Your donation of a vehicle will support services that help these
children develop into healthy adults.
Need Help? Live chat with a representative.
or call 1-800-699-7566
A car doesn’t have to be in working condition to be a valid donation. In fact, you can donate a car that doesn’t seem to have any redeemable value at all. There is even a special occasion when someone will make sure the vehicle never runs again before trying to sell it. The resulting shape and state of these vehicles has been called “art” by some and “cubes” by others.
While some charities use a car donation as transportation within their own organization and others fix up the vehicles to sell them at auction, these options just aren’t available for vehicles that have been – in the best sense of the phrase – run into the ground. That doesn’t mean they are completely worthless, though. In fact, up in Winnipeg there is currently a program going on in which the Habitat for Humanity is benefiting from cars that have a certain “boxy” theme to them.
In an article in the Winnipeg Free Press they discuss the collaboration between Habitat for Humanity and Urbanmine – a metal recycler. This car donation program will give the proceeds from the recycled car to Habitat, which will then used those funds to help with the construction of new homes. This is just one of the many examples of people using charitable car donations to make a difference wherever they can. In this case, there are two distinct benefits. One, the Habitat for Humanity will receive some very important funding, and two, the recycling process will remove old clunkers from the road and make sure they don’t just waste away in a landfill.
No matter how attached you may be to your old car, there comes a time when you just have to let it go. You may not be fond of the idea that your faithful car or truck is headed toward a temporary career as “modern art” but the money made from recycling the steel and other components in the car can really help out a worthy organization.
If this is the first time you are taking the leap and donating a car to charity, then you probably have a few questions. Hopefully these answers will help you feel easier and understand the process behind car donations.
1. Can I still donate a car that hasn’t worked in years?
Almost always. If your car is so old that it would cost more to tow than the value it would give the charity, then chances are it will not be accepted.
2. I get a tax deduction right? How much is that deduction?
You can claim the value of your donated car up to $500. Or, if we can sell it for more than that, they you can use our receipt to claim that amount.
3. I don’t have the title to my car, can I still donate a car?
This depends on your situation. If you do not have your title, then contact us for the specifics.
4. Will my car be sold for parts or donated whole?
This depends on the condition the car is in. Regardless, when you donate a car to charity, you still are doing a good thing.
5. When you pick up my car, do I need to be home?
No. If you can’t be home, then just make sure that the keys and title are available in the car. Make sure you don’t leave anything personal in the car.
6. Do I have to pay for towing?
No
7. The owner of the car passed away. Can we donate for the deceased?
If you have a death certificate and the documentation saying you inherited the belongings, then we can pick up the car.
8. I saw an abandoned car, can I donate it?
Unfortunately, no. In this case, you would need to contact a junkyard.
9. What do I do with the license plate of the car?
Depending on the state where you live, usually you need to return the plate to the DMV. Some states require that the plate stay on the vehicle. Contact us for more details on your individual situation.
10. What should I do if there is a problem after I have donated a car to charity?
We accept all responsibility for your car after it has been picked up. However, if you have any previous fines, you are responsible for them.
Hopefully these answers help you in your decision, and make the process a little easier.
New York State Attorney General Andrew Cuomo recently announced on Tuesday June 22nd that he has subpoenaed 16 different car donation charities and fundraisers that could be scams. This is all part of an ongoing investigation that Cuomo hopes will halt fraudulent activity that takes advantage of trusting citizens.
One organization, Feed the Hungry (FTH) is charged with raising $430,000 with car donations between 2002 and 2009 but only donating 1.8 percent of that towards its said cause of feeding homeless New Yorkers. The rest of the money, was allegedly spent on personal purchases by the director of the charity, Nicholas Cascone Jr.
When you decide to donate a car, it cannot be expressed enough that you need to carefully consider your options. While you might believe you are making a charitable contribution, you might just be taken for a ride instead.
“We remain concerned that similar practices may prevail in other organizations and will diligently work to root out any other sham charities. As we continue working to clean up this industry, we encourage generous New Yorkers to stay informed and to keep donating to worthy charities,” said Cuomo.
Other charities that are under the microscope include Kars 4 Kids, Bless the Kids and Lechaim for Life. While you can still receive your car donation tax deduction if you were to donate to such charities, you might not be donating to a worthy cause and these companies are still taking advantage of their nonprofit status.
It’s usually pretty simple and straightforward to donate a car to charity, but there are still a few things you can do to make sure that everything goes smoothly. These tips are often overlooked because they seem like small things, but if you want to get the most out of your vehicle, it’s important to pay attention to every detail.
Make sure of the final destination
A car donation can lead to a fairly significant tax deduction, but only if it goes to the right place. The charitable organization must have 501(c)(3) public charity status in order for your donation to count as a tax deduction. Donations to a 501(c)(4) organizations are usually not tax deductible.
Fully transfer the car
Never just leave the assignment of ownership blank. When you donate the car make sure that it is filled in. If the car ends up getting sold to another user who doesn’t re-license it, you can find yourself in a lot of trouble. Any tickets that they receive or crimes they commit with the vehicle will still be attached to your name. Car donations are meant to help everyone involved, not cause a lot of new legal difficulties.
Finish all the paperwork
In order to get the full car donation tax deduction, you will need to make sure all the paperwork is completed. This means that if the car is worth more than $500 you must also complete and attach the IRS Form 8283.
Value your car correctly
The regulations on donating a car for a tax donation have gotten pretty strict. Since 2005 you can no longer deduct the market value of a car that is worth more than $500. If this is the case for your donation, you will be able to determine your final deduction after the car is sold and you find out exactly how much it went for.
When to use Fair Market Value (FMV)
There are some times when you can still deduct the fair market value for your car donation. FMV is usable when the charity keeps and uses the car, or when they make improvements to the vehicle before selling it. It is also available when the car is sold at a discount to someone with a low income, or just when it is worth less than $500.
We always want to make the donation process as simple as possible, but if you keep these tips in mind it will be even easier to donate your car and help out the best charitable organizations.
The James Bond Aston Martin DB5 from “Goldfinger” and “Thunderball” is going to be auctioned on October 27th. Since 1969, Jerry Lee, an American radio broadcaster, has owned the classic car.
Aston Martin has only made two special edition cars ever, and this one is completely operational with secret agent gadgets, like a tracking device, revolving number plates, oil slick sprayer, machine guns, nail spreader and a bulletproof shield.
Like many car donations, the proceeds from this auction will go towards charity, and while your car donation might not bring in the $6 million expected from the car driven by Sean Connery, you can still make a difference with a car donation of your own.
When you donate a car to charity, you help those in need. And who knows, maybe getting rid of that clunker will help free you up to purchase the ultimate car, the James Bond Aston Martin DB5.
When you want to donate a car, you have to be careful which business to which you donate. As with any business, there are some scams, and unfortunately, when it comes to charities, some people are all too willing to play on your heartstrings and take your money. We recently came across this video about car donation scams, and we thought it would be good to pass along.
This video describes something that is unfortunately, common practice for some car donation operations. Rest assured, when you donate a car to 1800CarDonations.org, we make sure your money actually gets into the hands of people who need it.
Try as we might, some of us just can’t quite get everything together for the April 15 deadline. We’ve done what we could, but now we need to file for an extension on our 2009 tax returns. If you’re in this situation, don’t feel too bad. More than 8.5 million taxpayers received extensions this year. The good news, though, is that you can still take a car donation tax deduction.
Keep Track of Your Documents
Many taxpayers have made their charitable donation only to lose the all-important tax deduction receipt somewhere between the time the car is taken away and the time to file for a tax return (whether filing for an extension or not). This situation is, of course, only exacerbated when deadlines get stretched out and other things start to get in our way.
The tax deduction receipt is critical to take the appropriate deduction, and it has all the information you (and, of course, the IRS) will need. It has the name of the charity that received the donation as well as its 501(c)3 registration number, the date the donation was made, and a statement that you didn’t receive any financial benefit in return for the donation. Hold onto this document. You will need it to get the full value of the deduction.
Keep Track of Your Deduction
When you’ve done something generous like donating a car to charity, you really do deserve some kind of recognition for it. The government has provided this in the form of a tax deduction, and there is no reason to miss out on it just because you filed for an extension. Get all your records together and make sure that when you do file your taxes you are deducting everything you can.
In the car donation business, a few charities are, unfortunately, less than stellar. In the news recently, you may have heard about Cars 4 Causes®, which is currently undergoing a lawsuit for allegedly failing to pay the funds owed to the fundraiser. You can read about the lawsuit here, but here is the short version of what happened:
Cars 4 Causes hired Charity Development, LLC to handle the logistics of car donations. Charity Development handles the repair, storage and selling of the cars given to Cars 4 Causes, and Charity Development in turn gives Cars 4 Causes the money.
Charity Development claims that they have been delivering more proceeds to Cars 4 Causes than the company has actually donated to charities.
Charity Development asserts that Cars 4 Causes is only giving about 16% of the proceeds to the designated charities, while they are spending the rest on their own internal overhead and other programs.
When you want to donate a car to charity, make sure you choose a reputable company that will do its part of the bargain. Make sure you research the charity company online and find out everything you can about them. If they are reputable, then they will not have anything to hide.
At 1800CarDonations.org, we care just as much about your charity car donation as you do. Make sure your donation goes to people in need, and make sure you choose a company that can help your donation make a difference.
One of the biggest incentives to entice you to donate a car is the tax deduction that you get from the government. A few years ago, the IRS buckled down on car donations and some things changed, but that doesn’t mean that you still can’t get your car’s value. Here’s how it all works:
When you decide to donate a car to charity, it used to be that you could deduct the fair market value of your car—which is not the same thing as the full “suggested retail price.” However, because people were abusing this, the IRS stepped in.
Now, when you do a car donation to charity, you do not have much (if any) control over the amount you get back from the government. If your car is valued over $500, then your deduction is based on the actual selling price from the charity. This means:
You need to donate your car, and within 30 days, the charity will send you the statement that says the amount for which your car sold. It can be a little scary donating a car without knowing how much money you’ll get back, but that is how it works with every charity organization.
When you file for your deduction, you will need to include this statement of sale with the tax return.
After that, it is easy, since you only need to wait for the money from the government—which is sometimes easier said than done.
The process to donate a car is especially easy, even with the changes from the IRS. It puts a lot more control in the government’s hands, but the end result is the same.
There has been a lot of talk about car donations to charity, and many people have discovered that this really is a great way to get rid of that old clunker while doing something good for the community or a favorite charitable organization. Everyone seems to have a different reason for donating a car, though. Here are 10 of the best reasons (in no particular order) to consider this as a final option for your vehicle.
The Tax Deduction – A car donation can lead to fairly substantial tax benefits. Every year, hundreds of thousands of people save a lot of money on their taxes because of this deduction.
Help a Family in Need – There are a lot of low income families that could use a working vehicle. It may not be the newest, sweetest thing on the road, but it will get them from place to place, which can be priceless.
Contribute to a Favorite Charity – Charitable organizations need your help. If you have a favorite organization that supports something you believe in, this could be a great way to lend a hand.
Provide the Charity with a Working Vehicle – Sometimes charities need more than money. Sometimes they can put your car straight to use within the organization.
Stop Making Useless Insurance Payments – Why keep paying insurance on that clunker when you never use it? You can easily eliminate this burden.
Stop Making Repairs on Clunkers – At what point have you put more money into your vehicle than it is worth? Donate the car and stop the money drain.
Stop Feeling Unsafe in Your Own Car – Have you ever driven down the road and felt sure that the axel was about to drop out of the car? It’s time to get rid of it.
Reduce Pollution – Those old cars weren’t the most environmentally friendly vehicles around. Donating it will get it off the road and reduce your carbon footprint.
Recycling Potential – Is your car completely unusable? It can always be recycled and put to use in a different way.
Feel Good About Something – Whatever other monetary benefits are involved with this process, you can walk away from your car knowing you’ve done something good.
There are many other good reasons to donate your car to charity, just take some time to consider your options and evaluate your vehicle. Is it doing you any good? Could it do some good for someone else? Car donations may be the simplest, most effective way to deal with those old vehicles.
"I found the Outreach Center to be a good organization. They arranged to pick up the car, came right away & it went smoothly. The gentleman that picked up the car was very coordinal. I'd recommend others to donate their car to Outreach when they are ready."
-Daniel Hollis
"I have nothing but good things to say about donating my car to you. It was picked up promptly from a very courteous driver. What more can I say? It was a very good cause."
-P. Fisher
"My experience with Outreach Center was that they were fast and reliable. They arrived here when they said they would. The guy who came to pick up the donation was very courteous and friendly."
