Do you have any old vehicle sitting around that you no longer use? Then the best use of it is to donate it to a charity. But how can you do it? Here’s a complete guide for why and how to donate a car to charity.

If you have an unwanted or unused vehicle standing somewhere inside your garage, consuming a lot of space then we can understand that how much it must be bothering you. Also, the fear of tax implication on this extra asset you have must have ruined your peace of mind and sleep. There are technically many ways to get rid of your unwanted vehicle. You can sell it online, place an ad in the newspaper, or give it to a relative.

Or another amazing yet great option is to donate your car to charity. Now, I know that normally the thought of ‘donating’ a ‘car’ is not something that will come to your mind while thinking about your unwanted car but trust me – it’s something that will never make you regret it.

Gifting used cars into charity has become a favorite way for many people to get rid of unused or unwanted vehicles. But why exactly they do that? What do they get from it?

Why Donate Your Car into Charity?

After reading this suggestion, you all must be thinking that why someone would prefer donating overselling? But sometimes, my friend – one should see beyond the concept of loss and gain.

The cars you donate to the charity are used for the betterment of the less privileged people around us. Some cars are sold part-by-part into local markets to raise funds for the orphans or veterans. Some charities auction cars as it Is and used the money for the welfare of the impoverished part of the society. Also, some charities give these cars to needy people to make them earn from them by giving Them to services like Uber, etc.

So, indirectly you are becoming the reason behind someone’s welfare. This little donation of yours can make someone’s life, satiate the hunger of many and maybe give someone a better future. Isn’t it all making you feel like giving that old RV parked in your garage in the charity? Right? We knew that. Now learn how to donate a car to charity.

How To Donate a Car into Charity?

Donate a car isn’t a lengthy or time taking procedure itself. It’s like you can just contact a charity and arrange for them to come and pick up the vehicle from your place. Many big organizations are dedicated to doing this work with complete hotlines and websites with donations.

Another way is to sell a car, and donate the money to the charity. Your car, your choice. If you are good with donating a car itself, then there are few things you may need to consider to minimize the risk.

Select a Reliable Charity

Donating a car to a charity is generally safe, still, you wouldn’t want to get into any trouble or want your charity to be used in some negative things. To avoid this, it’s better to select a reliable charitable organization. Search and research how they are using donations, take reviews from other people, and learn about their goodwill.

Get a Receipt from The Charity

Make sure to receive a receipt from the charity for the vehicle that you donated. Also, ask for a document to certify how much the vehicle was sold for. Normally charities are obliged to provide that document within 30 days of receiving the vehicle. However, you may need to talk about their terms and conditions.

Remove Your Car’s License Plate

That may sound odd, but this is one of the important things you may want to do. Make sure to remove your car’s license plate once you are done driving it or transfer it to another car. Just don’t leave them to the donated car.

File a Transfer Form

Remember to file a transfer form to sign over your title with a transport or motor vehicle agency of your state.

Itemize It

Donate a car is a noble thing, but that sweetest feeling of tax exemption on it is different. To get a tax deduction on your car donation, you may have to itemize deductions on your return. Tax-filers may deduct the full market value of a donated car from their tax returns. However, there are certain circumstances that apply to it.

For example, if your car is operational under charity use, or the charity donates or sells it to a needy person for below market value etc. you can ask for a full deduction of market value. In other cases, you may only deduct as the charity received from selling the car.