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4 Things You Should Do Before Donating Your Car To A Charity Organization

6 June 2017

Nino Clement

If you have a vehicle that is still working but you don't want to go through the hassle of selling or a vehicle that is not working but has a large scrap metal value, one of your options for getting rid of the car is to donate it to a charity organization that accepts car donations. Here are four things you should do before you go forward with donating your car to a charity organization.

#1 Check It's Charitable Status

Before you donate your vehicle to a charitable organization, you should check its charitable status to ensure that it is actually a charity organization. In order to be a charity, it will need to have a 501 (c) (3) status. It has to have that status in order for you to be able to write off your donation on your taxes and benefit financially from your donation.

There are sites online where you can check up on charities, or you can ask to see their paperwork that shows they are a 501 (c)(3) charity.

#2 Donate Directly

Second, you want to make sure that you are donating directly to the charity itself. There are many intermediary agencies out there that will purchase your old car with the promise to donate a portion of the money they make off of your vehicle to a charitable organization. Although that is a notable ambition, and a way to indirectly have a positive impact on society, it doesn't provide you with any tax benefits.

In that case, the organization that sold your vehicle and made money off it would be the one who gets a tax break for their charitable donations. You would not get any benefits from the charitable donation yourself.

#3 Transfer The Title

You need to make sure that you transfer the title and formal ownership of your vehicle over to the charity itself. This releases your liability for the vehicle and anything that happens with in the vehicle in the future, including accidents and tickets.

You are going to want to take the title and be sure to write the charities name into the ownership slot on the back. Do not leave this space blank and do not donate to a charity that asks you to leave this space blank so they don't have to pay to transfer the title again if they re-sell the vehicle.

It is important to properly transfer the title if you want to fully protect yourself.

#4 Drop Off The Vehicle Yourself

Finally, if you want to make the most of your donation, you should drop off the vehicle yourself if it is still running. If it is not still running, and you pay for a roadside assistance program, use those benefits to get your vehicle to the donation center.

That way, you don't have to pay for a tow truck to get your vehicle to the charity center and neither does the charity. Having the charity pay to tow your vehicle reduces the financial benefit of your donation to the organization. 

Remember these tips when dealing with organizations that have cars for sale and that may deal in charitable donations of vehicles.

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