Sometimes we all need to go back to basics. Information overload can take its toll, and when it comes to donating a car, we often like to jump into all the details. Taking a step back with car donations, allows you to focus on how you can make sure you’re not being scammed.
- The first way you can check and make sure a charity is legitimate is you do your research. See whether there are any open investigations by researching online and with the Better Business Bureau.
- Check the percentage of money that goes to the charity. Charities will use a portion of their proceeds to operate their own business, but you can usually find a company that takes under 15% for their own needs.
- Know the write-off rules. You know the IRS has changed the rules, so take some time to learn how this will affect your individual situation. If you need help, call the car donation charity to ask questions.
- Value your car correctly. You usually can’t deduct the fair market value of your car, so make sure you get all the paperwork and know how much your car went for.
The biggest thing you need to keep in mind when you decide to donate a car to charity is to do your homework. It is an immensely satisfying experience, and it won’t take a lot of work, but if you don’t put in some time you might find that your donation didn’t do as much as you originally thought.