Have you thought about donating your car to a good cause? There are many groups advertising for car donations. Here’s what you need to know so you don’t get duped.
In order for your car donation to charity to be tax deductible, the charity must be a nonprofit tax-exempt organization that falls under the IRS section 501(c)(3). You want to make sure that you donate to a charity that qualifies, or else you will not be able to claim it as a tax deductible donation.
Here is what you need to know when donating your car to charity:
1. Make sure the charity qualifies for tax-deductible donations.
At Donate a Car, we have done this work for you! Each of our approved charities are IRS section 501(c)(3) qualified, taking the worry out of your car donation. In fact, we have hundreds of qualified charities for you to choose from for your car donation.
2. Make sure your vehicle is picked-up by a reputable towing company.
A trusted car donation service would never have your car towed by an unlicensed or unauthorized person. Be sure that you schedule your car to be towed by a trustworthy towing company. Towing should be free and scheduled at a time that is convenient for you.
3. Make sure you get a receipt for tax write-off purposes.
You should receive a receipt from the charity you are supporting that shows the amount you can use for a deduction on your tax return. Most often, this receipt is mailed to you after your car has been donated and processed. Make sure that all the proceeds from your donation go directly to the charity.
Donating a car to charity is easy with Donate a Car. We take care of all the paperwork for you and we pre-qualify all our charities, providing you with more choices to donate than anywhere else. Since 1994, we have been helping bring charities and car donors together to make a big difference. Call us today at 1-800-237-5714 or visit our Find a Charity page to look through our list of charities.