There are plenty of misconceptions surrounding car donation. Prospective donors do not know how to spot a legitimate charity, and they mistakenly think that only traditional cars can be donated. There are false ideas everywhere, so do your research first.
Here are some of the most common misunderstandings.
- It’s better to sell your old car than to donate it
Selling or trading in your car might give you some financial benefit, but if your car’s value is less than $1000, it’s probably more hassle than it’s worth. Donating your car will provide far more value to a deserving non-profit organization, while giving you a good tax break.
- Your car has to be running to be donated.
Most charities auction cars or salvage it for parts to sell. The proceeds then go to funding the important programs and services the nonprofit provides. It doesn’t matter if the donated car is not running anymore; it’s still good for donation.
- The only vehicles to donate are cars and trucks
Most people think of donating a traditional vehicle when they hear of vehicle donations. Most nonprofit organizations take all kinds of vehicles, as long as they have the keys and titles. You can donate any kind of vehicle.
- All charities are the same.
When you find a charity that you can donate your car to, don’t think that you’re set. There are some fraudulent charities out there. In order to know if you have found a legitimately trustworthy non-profit organization, it’s important to verify its status and make sure it has a good reputation.
- You can deduct what you think your car was worth from your taxes.
Giving your car qualifies you for a tax deduction, but the amount is not a straight one to one in terms of its perceived value. Basically, it all comes down to the sale price. The charity will also help you calculate the proper deduction.
When you are ready to give away your old vehicle, put it in the hands of a good charity that can pass the benefits to the less fortunate in the society. You will make a big difference in someone’s life.