Deal directly with the charity. Many people learn about the benefits of donating a car though advertisements in local newspapers and late night television commercials. These commercials are great that it brings awareness to information on how to donate a car and possible tax breaks, but these businesses are strictly created to make money, the end result is the charity may receive some money, but a majority of the money will go to the middleman website. Many charities will be willing to accept donations directly.
Donate to a charity that interests you. Regardless of the reasons behind why you are donating your vehicle, the end result is you are helping an organization that will help people. If you take a few minutes you can find a reliable charity by checking out websites such as Charity Navigator or the Better Business Bureau.
Know the value of your vehicle. Before you sign your vehicle away ensure you know how much money your vehicle is actually worth. The easiest way to find the value of your car if by Kelley’s Blue Book website to receive a accurate value before you donate a car.
Do some homework. Only donations to IRS-approved 501(c) (3) charities will qualify for a tax deduction. Usually religious organizations and schools qualify; a list of fully qualified charities can be found using this link.
Drop off the car yourself. This tip is not necessary for donating a car, but is nice to know since it will save the charity money instead of them having to pay a towing company to pick up your car.
Take pictures of your car, before transport. This tip will ensure that any disagreement in the condition of your car can be documented and accurately be represented if something should happen during transport from your house to the charity organization if a towing company was used.
Get a receipt. If your vehicle is valued over $500 a receipt from the charity stating how much money the charity received by selling the vehicle. Also a person can receive full market value id the charity keeps the vehicle to conduct charitable work with.
Transfer the title. This tip should be common sense, but I will state it anyway, since you no longer maintain ownership of the vehicle and do not want to be held liable for anything that happens with the vehicle, ensure you transfer the title over to the charity.
Resources:
http://www.howtodonateacar.info
http://www.charitynavigator.org/
http://www.give.org/reports/index.asp
http://www.kbb.com/
