How to Donate a Car

Having an old car can be a great nuisance. If they are in 'useable' condition, they tend to break down so much that the cost of fixing them is significantly more than what they were originally worth. If they are not in useable condition, they can take up valuable space in the garage or become an eye sore in the driveway. In fact, some communities may even fine residents who let old cars sit too long on their properties. So, what is the solution? The answer to this question is simple: donating the old car.

How does one go about donating their car? First, they must find organizations that are willing to take the vehicle. Churches, schools, charity organizations and companies that specialize in providing disabled people employment are examples of enterprises that are the most willing to accept a donated car. Many of them may even ask for donations through newspapers, circulars or the Internet. Either way, once a person has selected the organization they are going to donate their car to, they must get the process started by calling them or filling out an online form.

If the car can still run, it is best if a person drives it directly to the organization to avoid having to pay for towing. However, if the car does not work at all, towing is inevitable. One can expect to pay a couple hundred or more if they need to have their donated car towed to a destination that is far.

Fortunately, a person can try to bypass towing fees depending on the organization they are working with. For example, some companies accepting donated cars act as 'middlemen' to the organizations that will actually use them. They will assume the responsibility for towing and any other concerns associated with car donation. The person donating the car does not have to pay for these privileges; in fact many of these middlemen may actually pay the car owner. Granted, the pay is usually very low, but it's certainly better than receiving nothing.

Regardless, once a deal has been made, the organizations will do a variety of things with the car. For instance, if the car is in working condition, it may be used for transporting people or goods within the organization. Alternatively, it may get sold or even given away to poorer individuals who cannot afford to buy a car on their own. Lastly, organizations may strip the parts contained within the donated car. They then proceed to sell these parts to manufacturers who will use them in the assembly of new cars.

So, it's obvious that the recipients of donated cars have a lot of options when it comes to what they can do with their newly acquired vehicles. Yet, what's in it for the car owner? Well, firstly the car owner becomes freed from all the legal responsibilities associated with owning their car. Tag registration, emissions checks and auto insurance become things of the past when one donates a vehicle.

Secondly, through the process of car donation, they become eligible for a deduction on their taxes. To do this a person will need to request a receipt after having donated their vehicle. They will then use the information on this receipt to fill out Schedule A Form 1040. This is the tax document that has to be filled out if one wants to claim donation-based deductions. Of course, when filling out this form, a person must provide a value for their car that the IRS is likely to accept. Therefore, it's best to just supply the blue book value of one's vehicle. Otherwise, a person risks not having their donation get accepted for a deduction.