Donate Your Used Car

So you might be thinking about getting rid of your car or upgrading to a new one. Well you will be glad to know that aside from selling your car or sending it to the junk yard there is another option. This option that not many people seem to know about is known as car donation.

Donating cars is tax deductible which is a great way to save on your taxes. You can get either the Fair Market Value of the car that the charity sells if for or in the case of more expensive cars you might need an independent appraisal. There is a few things you need to consider before you actually donate your car to charity.

The first thing you need to consider is the value of your car. If you have an old vehicle that you can see the ground through the bottom of it. The chances are it is not worth a great deal of money it can actually cost them more money than they make from it. They will still accept the car from you in the spirit of donation but it is really not the right thing to do. Except when dealing with old or vintage cars, their individual parts can be quite valuable.

Also many donation charities have pick up services. The best way to save them more money and make your donation more valuable to them is to drive your car there yourself. Just make sure you have someone to drive you back home or to wherever you need to be after.

Next, get more FREE information on how to donate used cars to your favorite charity, at our blog here: http://www.waukoo.com/cardonation.

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Car Donation - An Introduction

Donating your car is a great way to get rid of your car when you do not have the time to sell it yourself, when you do not think you can get what you want for it, or when your car is just not worth bringing anywhere. Instead of making a couple of hundred dollars on your car or less you can easily and painlessly donate your car and reap the many benefits of doing so!

Why People Donate Cars?

Many people donate their cars because of the reasons stated above: they don't have time to sell it themselves, or they know they can't get much for the car. They also will donate their car to help out a charity and even get a tax benefit from donating their car.

How To Donate Your Car?

There are some very simple steps you can take in order to donate your car. Here are your steps to donating your car:

Step 1: Locate a charity that will accept your car without charging you a lot for removal. Some charities will take your car as a donation and come pick it up for you free of charge. However, it depends on if you have a preference as to what charity you would like your car to go to. The organization or charity must be a 501(c)(3) non profit organization. This is a specific certification non profit organizations receive from the government. If they do not have this, refuse and move on to the next one. If they are not certified you will not be able to get the tax benefits you deserve to get.

Step 2: Once you have chosen a charity to donate your car to, go ahead and donate it. Before you do though, you will have to determine the market value of your car using the Kelley Blue Book. The IRS will expect you to be able to provide them with your car's estimated value when you do your taxes. There is also a publication that the IRS has that will help you determine the value of your car and give you more information on this. Just visit their website to get publication 526: charitable donations. While you are there pick up publication 561: determining the value of donated property. If your car is worth more than $5,000 you must have a professional certify the value of your car.

Step 3: When you donate your car to charity make sure you get a receipt from them. The receipt must have this information on it - the charity's name and tax ID number, the date, your name, and the make and model of your donated car.

Step 4: Make sure you let your insurance company as well as the Department of Motor Vehicles (DMV) know that you have donated your car. Follow the law on what to do with your donated car's license plates and the car's title. Now you can complete the IRS form 8283 and keep it with your receipt and store it away safely for tax time.

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