Donate A Car For A Tax Deduction - Which Car Donation Organizations Are Legitimate?

If you're thinking about donating a car to a charity or non-profit organization so you can get a tax deduction a few questions may come to mind

. First of all you're probably wondering what car donation organizations are legitimate? Of course, you want to know that the charity or charitable organization you donate your car to is qualified and just not out to get your car for selfish monetary gain. And know that you'll be able to take a tax write-off.

You'll find there are many types of charitable organizations including religious organizations such as churches, mosques, synagogues and temples. So where do you begin.

There are many national organizations as well as local organizations. Many with names you've probably heard like Goodwill, Purple Heart for our vets, and the Kidney foundation just to name a few. But local organizations or local chapters of the national organizations will be coming to pick up your used car or tow it unless you are able to drive the car to the charity after all arrangements are made.

You want to make sure that the charity or charitable organization you choose is operating legitimately. Yes, there are car donation programs or organizations out there just looking to take your car and not providing what you need in terms of documentation for your income tax return.

However, you can avoid that by asking the charity if they are a registered 501(c)3 charity or other qualified religious organization. Ask to see proof in writing. Once your car or other vehicle changes hands it will be hard to get it back. You need to verify this so you know that they can legally accept your car and that you can legally take a tax deduction. Religious organizations are not required to get registered however.

Be aware that there are car donation intermediaries. These are companies that advertise to get you to donate your car to them and they take a good chunk of the profit. (Charities hire them to handle their car donation programs.) It could be as much as 55% or more. Ask if your charity uses an intermediary. If you want the profit to go directly to the charity you need to choose one that does not go through an intermediary.

Some charities charge a vehicle removal fee. Most legitimate charities will pick up you car or truck or other vehicle without charging a fee. In addition, if you deliver it of course, there will be no fee. So make sure to ask if there is a removal fee.

So that's what you need to know to determine which charities or charitable organizations have legitimate car donation programs. You may want to pick a name that you know has been around for a long time and check them out first. Most have local chapters so it should be easy.

by: Helen Hecker

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