Have you a spare, useless and repairable vehicle in your garage or taking a lot of space in your driveway? Don’t you have time to look after, repaired and sell it? If you want to get rid of it, no need to worry about that. Just donate it to a charity. Our life is full of facilities and technologies.
Everyone has their own lifestyle and living standard. Everyone wants to live a luxurious and happy life in their budget. But 30% poor people cannot afford basic needs like clothes, food, gadgets and vehicles. They spend their 95% budget on basic needs and public transportation.
Car donation is the best way to help those poor and needy people who cannot afford their own vehicle to travel. In this way, you can get many benefits and rewards.
When you decide to donate your car:
There are many reasons that you want to donate your car to charity.
- You are a well-establish person and want to buy a new car and don’t need your old vehicle. You don’t need to just put it in your garage or driveway. Just give it to charity.
- Your car has much repairable work in it and you have no spare money and time for maintaining it so, you should give it to charity.
- You cannot handle government taxes, utility bills and other loans, you can give your old and useless vehicles in charity and claim for the tax deduction.
- You are not able to drive your cars due to some physical illness, you can donate it and earn blessings and prays for needy persons.
- Your car needs high amounted repayments like battery or engine problems and you don’t have much budget. Just donate it to charity.
- Instead of selling your junk or waste cars, you should give it to someone on low price through charity organizations or by self.
Advantages of donating a car:
Donate a spare and useless car to charity gives you so many advantages and comforts. Like
- Inner peace
When you donate a spare or old car to a needy person, you will feel inner peace and satisfaction that you are going to help a deserving person or family. You will get many blessings and good wishes from them.
2. Get rid of the old car
If you are going to buy a new car and the old one is not in good condition. You don’t have the place to put it on a side. Even you don’t have time to repair or sell it. Then you can give it to charity and get rid of old one or junk.
3. Donation for Social work
You can donate vehicles and spend the fair market value price on some selected needy families or in other social works and religious organizations. You can provide food, clothes and other basic needs of life to the poor families. You can also help through a donation of the vehicle’s funds to kidney, eyes and other patients.
4. Encouragement to others
Your little kind act will make you an ideal character of humanity so, the donation of a vehicle and spend the money on charitable purposes will encourage the other well-off and rich people to help and support the charitable organization. The more people will help through charities; the needy families will get benefits.
5. The donation of a car makes you contented
When you see there are a lot of people in your friend’s circle, or in the community that, they don’t have transport and not able to buy a second-hand car in their limited budget, you will be very thankful to God that you are blessed. You have own car facility. So whenever you will replace your old car with a new one, you will give it to another needy person, friend or a non-profitable charity organization.
6. Donation can claim as a tax deduction
When you donate a care in charity, you can demand to the charitable organization to deduct your tax on the donation. You can manage tax deduction according to donation’s fair value.
7. No need to worry about car’s condition
You have old and damage care and you want to donate to charity, you need not worry about damage or poor condition. Because charity organization will pick up your car from home and repair and sell it by self.
How to donate a car to charity?
After deciding to donate a car The second process is to select a non-profit able authentic charity organization. It is very easy to give your things to charity but, you don’t know whether they deserve your charity or not. When you select an organization some point must be considered.
1. Take a list of all charity organizations
Firstly, you have to collect information about all charity organizations who are working for poor and needy families or migrates. There are so many renowned profitable and non-profitable charity organizations in California like ACC senior services, Alzheimer’s Association National, Cars2charities and Wheels for Wishes (make-A-wish), Anaheim California Charities, San Diego California Charities, Harold’s car donation, etc. You can get information about that organization from internet, newspapers and television advertisement.
2. Pick a category
You must pick a category that you want to donate your vehicle. There are so many organizations work for different purposes. Some of them are working for kidney patients, for eyes patients, poor migrated or residential families to provide them food and clothes, to help in poor and abounded children or some other religious organizations. You must select a category to donate your car and money.
3. Wise Selection of an organization
You must be very wise in the selection of cherty organization. Make sure that organization work for deserving and poor people. There are many other organizations offer financial and materialistic benefits of donation. But actual mean of donation is not to get financial benefits. It means to help needy families whether it is the shape of money or things. You must select a non-profitable organization for charity.
4. Try to connect with non-profitable Organization
Always try to find and connect a non-profitable organization to donate your vehicles. There is so many fake non-profitable organization are working but you must find real charity organization who work for deserving people.
5. You must investigate the organization
When you select an organization for charity, you must investigate their charity performance.
You should ask them the different question. Like
1. What is the basic goal of this organization?
You must ask the basic goals and aims to of this the organization. Every charity organization must know that what are the purposes of their establishment.
2. What are the basic needs of the organization?
If they are running a religious charity organization, kidney, heart, eyes, or other diseases help centers, child protection organization and needy families. You must know about basic needs and funds to set their system.
3. What is the progress after founded this organization?
You must analysis progress after establishing the organization. Like, what they are doing or what they have done with the people’s funds.
4. what are the verification and authentication process of this organization?
Before donation, you must ask the authentication and verification process of the organizations when they take vehicles and another thing from people. Make sure that they are not collection stolen things. They must have the proper way to collect funds.
Documentation needed to Donate a car
You can not only donate a car also boat, bike, truck and other things to a charity basically to help a non-profitable organization. These organizations collect your vehicles, repair and sell them for charity.
They give you maximum 25% (through tax deduction) On the vehicle selling amount. You no need to search workshops for repairing or selling purposes. There are so many organizations in California that they pick your vehicles from your garage or driveway.
But there is a complete process to donate a car to charity through an organization. Whether you are donating a car to the charity organization or to a needy person, you must complete some paperwork.
You need to fill the online or official form for this purpose. So, you need to follow these steps.
- Original documents: You must have the original documents or papers of vehicles, license and insurance details for the documentation and filling the forms.
- You must transfer the vehicles to the charity in your presence: If your selected charity organization will say you to leave the vehicles and no need to stay in office and they will fill all documents or ownership columns. Do not trust them. Try to find another organization or make real transfer documents for charity purpose.
- Tax deduction paperwork: You’re giving your car for tax deduction purpose, then you will face many documentation and verification work. Whether you are selling your car by self or through an organization for charity purpose. You will face many verification processes. Doesn’t matter, what is the condition of the vehicles good, damaged or junked.
- You must take time if the process is slow: If you are feeling that the selling process of the organization is not progressing or delaying your paperwork, then you must fill extension form 4848 related to the IRS Publication 526. This is a process to get the six-month extension from the charity organization to submit the funds.
- Do not remove the license plate: Before moving the vehicles to charity, do not remove the original license plate from the car. Because in California removing the license plate is not allowing. So the original license plate will remain with the vehicles.
- The title must be changed: Your vehicle has your own title. When you decide to donate it to charity, you must transfer the title to the new person or charity organization. Do not empty the title column.
How to get the Fair market value of donated vehicles?
It is not easy to get the proper market value of your donated vehicles for the charity organizations. But you can make your vehicles more valuable and worthy if, you follow the main points.
Estimated fair market value of your vehicles
Estimated fair market value depends on the condition of the vehicles. If your car’s value is $5000 0r more. But your vehicle not running properly or there is something wrong with engine or battery then, actual price $5000 will be considered including maintenance expensive.
Make visible the vehicle’s manufacture date etc
When you donate the vehicle to charity, always mention vehicle’s model, manufacturing date, mileage, condition and proper documentation makes your vehicles more valuable. In this way, charity organization or another party can make the fair estimate on the vehicle.
Drive the car and take to the charity organization
You drive your car and take to the charity organization. This way you can get real worth of your vehicle. Obviously, fair market value depends on the good or bad condition of vehicles. So running condition of the car will be very beneficial for both, you and the organization.
Try to sell out outside the organization
The charity organization mostly take two or three years to sell out these donated vehicles. You can try to sale it by self without charity organization and give that money to the charity. Your tax deduction based on the fair market value price.
Tax deduction estimate
The deduction of your tax will be based on the fair market value and tax percentage. For example, your vehicle’s market value is $1500 and your tax percentage 35 then, your tax deduction will be $350. If your tax percentage is 20 then, your tax deduction will be $200 but I would depend on your monthly and yearly income.
You must get a receipt
After the completion, all process of donating a car to charity do not forget to collect your donation receipt from the organization. Because sometimes they have the record of donors and vehicles so you must keep that receipt and other documents in your record.