Tired of looking at that old car sitting at the end of your driveway? Donating it to charity could be the best choice if you follow these suggestions.

If you have a vehicle you are no longer driving, you may be considering donating it to a worthwhile charity. There are a number of legitimate nonprofit organizations that have car donation programs. Here’s what you need to know if you want to donate your car to charity.

What Would a Charity Do With Your Old Car?

Do your homework before deciding on a charity. Look for evidence that the organization is well run and really makes a difference.

There are several things a charity might do with your old vehicle. They could use it themselves in the course of their charitable work, like delivering meals or transporting people to medical appointments. Some charities may attempt to gain some monetary value from your old car by selling or auctioning the vehicle. If it is in good shape, they might sell it for a low price to someone who needs it but cannot afford a new car.

How to Find the Right Charity to Donate Your Car

You can start by finding the right charity for you, one that does something you feel is important. There are many charities out there, and you cannot support them all. You will feel best about your donation if it furthers a cause that you believe in and maybe compounds previous contributions of time or money you’ve made.

Do your homework before deciding on a charity. Look for evidence that the organization is well run and really makes a difference. Check to see what portion of its funding is used for administrative costs instead of going to help people. Be sure it is a registered 501(c)(3) organization or tax-exempt religious institution.

Benefits of Donating an Old Car

There are several possible benefits to donating an old vehicle, including:

• Support a good cause:
  You might not have extra cash to give away, but the charity you choose can derive value from your old vehicle.

• Clear the driveway:
  If your car is a junker, you could get it out of your driveway for free. Most charities that accept donated cars will come to pick them up, saving you the cost of a tow and disposal.

• Gain a tax deduction:
  You could gain a tax deduction for the amount the charity gains from your donation, as long as you have a receipt from the organization. There are strict rules to follow and forms to complete regarding taking a deduction for this type of donation. Consult your tax advisor for guidance.

• Avoid the nuisance of selling the car yourself:
  Selling a used car yourself can be a hassle, from placing ads and showing the car to potential buyers, to haggling over price. By donating the car to charity, you can skip the hassle and the wait.

Avoid Vehicle Donation Scams

A stranger says they’ll come to your house, pick up your old junk car, and donate its value to your favorite charity. What could go wrong? One of two things, really. The charity never gets all or part of the value of your donation. Or, you continue to be the titled owner of the vehicle for several months, during which time it wracks up parking tickets and other expensive citations.

Scam artists are by definition tricky, so always keep an eye out for trouble. Dealing directly with the charity is one way to cut out the opportunity for someone to take advantage of your kindness. Avoid using an intermediate organization to complete the transaction. They will likely take a portion of the value of your old car instead of giving it all to your chosen charity.

Owning a motor vehicle, even one that does not run, is a liability. Be sure to complete all the forms to transfer ownership to the charity. Once that vehicle leaves your property, you do not want to maintain any responsibility for it. Do not leave forms blank and trust someone else to complete and file them appropriately.

How to Donate Your Car to Charity

Once you decide which charity to donate your car to, be sure to:

• Remove all registration, insurance, and personal items from the vehicle:
  You don’t know where this vehicle will end up or with whom. Keep your identity safe by stripping all evidence of your ownership from the car, including your license plate.

• Complete the title transfer information and sign the form:
  Ask the charity what name to use as the new owner when you transfer title of the vehicle with your state’s department of transportation or motor vehicles. Do not leave any sections of the form blank.

• Cancel your registration and insurance:
  Be sure the state and the insurance company know that you do not own the car any longer and should not be held responsible for it. Apply for any refunds you are entitled to from prepaid registration fees or insurance premiums.

• Find out from the charity who will pick up the vehicle:
  It is important that you identify the person who comes to pick up your old car as the designee of the charity to be sure there is no intermediary involved.

• Save copies of all the forms and documents related to the vehicle transfer:
  This documentation will come in handy if you have to prove you no longer own the vehicle. Keep the names, emails, and phone numbers of anyone you dealt with at the charity in case you need to refer to them. Also, save the donation receipt from the charity.

When your old car leaves your driveway, driven or hauled, you should no longer be the titled, registered owner of the vehicle.

Getting rid of that old car in your driveway will improve your home’s curb appeal and reduce your liabilities. For more ideas on how to make the best choices for your financial life, contact your financial institution. We’re here to help protect your interests.

0