We have all heard the advertisements for charities asking for car donations. It seems almost all charities will take them. And they don’t just take cars. You can donate trucks, boats, motorcycles, motor homes and trailers. But should you actually donate your car? Yes. And here are a few reasons why.
Charities are in need of donations, whether material or monetary. Donating your car allows the charity of your choice to use your vehicle in a variety of ways. If the car is in good or repairable order, the charity may use it as a vehicle for the office. They may need a delivery vehicle for food, drugs or necessities for their clients. Or they may have a list of recipients who are in dire need of transportation. Another option for them is to sell it themselves for cash. Even if the car can only be sold for scrap, it is still additional operating finances they wouldn’t have had if you did not make the donation. Additional information can be found at investopedia.com.
By donating, you may be eligible for a tax write off. If the charity of choice has been awarded a 501(c)(3) status, the fair market value of your vehicle is tax deductible. But this will only apply to you if you itemize your deductions. If you claim the standard deductions, or if your itemized total, including the value of the car, is less that the standard deduction, you will realize no tax benefit from your donation. That is not to say you should not make the donation. It simply means you cannot use it as a deduction. For a list of eligible charities, check out CarDonationWizard.
Many times the hassle of selling a used car is not worth the effort. Finding the right listing service, taking pictures, loading the ad are time consuming. Then dealing with emails, the no-shows, etc. Or you may have a situation where you simply do not what strangers coming to your house. Donating the car is a simple way to avoid these issues.
If you do not have a title for a vehicle, it is very difficult to sell it. A trip to the Department of Motor Vehicle to obtain a duplicate title can waste an entire day, to say the least. Receiving a car without a title is no problem for a charity. Understand, they will most probably be selling the item for scrap, but who cares?
Even without the tax break and ease of disposal, donating your car to your favorite charity is a rewarding feeling. Find one who’s cause you feel passionate about. The feeling you get when helping others is something you can’t place a value on.