Some Advice to Consider Before Donating a Car to Charity


kcampese
05-31-2009, 03:22 PM
Donating an old car to charity sounds like a great idea. You geta valuable tax deduction on your itemized federal return. The charity gets some much needed money to help fund their programs. It all sounds simple. It is if you know how to do it correctly.
Here's some advice to consider before you just blindly hand over the title to your car. Ask how much money the charity will receive. If you are dealing with a car donation center, ask them how much of the actual sale price the charity will receive. The term "net sale price" means the actual sale price minus auction fees, selling fees, or other fees charged by the center. In some cases, these fees may be more than the selling price of the car. If so, the charity may have to pay the donation center the difference. You won't know unless you ask! Always make a copy of your title. Know who you are giving your car to. You should either mail your title to the charity or hand it directly to the person towing your car after they give you a receipt. Never, leave the title in the car! If you do, you may not get a receipt and therefore, will have no proof of your donation. If you live in a state where you are required to remove the license plates, make sure you do! You won't be able to cancel your car insurance until you have either transferred the plates to another car or returned them to the Department of Motor Vehicles. You won't be able to do either if you leave them on the car! Make sure you keep all the correspondence between you and the charity. If you don't, when you go to do your taxes, you'll find yourself calling around to the various charities to find out which one you donated your car to.

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