Charity

What happens after you donate a car?

Since 2005, when you donate a used car you can only claim the fair market value of the car. This means how much the car actually was resold for, or how much it is expected to sell for based on various considerations including mileage and condition. This change was made because some unscrupulous people were taking advantage of loopholes in the law.

So you might ask: What happens after I donate my car to charity? If you go through a reputable donation service such as CharityCarDonation.com, the answer is that we will handle the IRS paperwork for you. If we sell the car within 30 days, we’ll tell you how much it sold for so you can claim the right amount; if it isn’t sold within 30 days, we’ll tell you what the fair market value is for your tax purposes. This lets you claim the fair amount for your deduction without any hassles.

Vehicle donations are about more than just cars

When most people hear about a vehicle donation program, they usually think of just automobiles. One question they might ask is this: I know I can donate my car to charity, but what about a motorcycle or a boat?

The answer is that you can donate more than just a car to a charity. CharityCarDonation.com takes all kinds of vehicles for donation. This includes motorcycles, trucks, SUVs…even a boat or an RV. If it’s a form of transportation that you don’t need, CharityCarDonation.com is happy to accept it and sell it, with the proceeds going to help families in need in your area or around the world.

Of course, we’re happy to accept a car donation in NYC or any other city in the United States. But don’t just be limited by your car! If you have a boat sitting in dry dock or a motorcycle that you don’t use ,we can find a way to turn it into money for a worthy cause.

IRS on the lookout for people who break car donation rules

It’s important to be honest when you donate a used car to charity. That might seem obvious, especially since most people make their donation because they want to help people in need. But there are a few people who attempt to “beat the system” by playing fast and loose with the facts when making a car donation in Los Angeles or elsewhere in the United States, and the Los Angeles Times recently reported that the Feds are taking a close look at these people.

According to the story, Marcus Owens, director of the IRS’ exempt-organization division, has decided to pay extra attention to deductions claimed on car donations. Specifically, some people either claim a donation value that is higher than it should be (in order to get a greater deduction) or are donating their cars to organizations that are not charities. It’s important to claim only the fair market value of the donated car when donating vehicles, Owens said, and to make sure you the recipient of the proceeds from your car donation is a licensed non-profit that is registered as such with the IRS.

Challenges for charities doing their own car donation program

A recent story in the Hackensack Record highlighted the challenges faced by charities trying to put together their own programs for car donation in NJ. One of the charities highlighted was the American Children’s Society, which helps provide financial assistance for families whose children are facing long-term illnesses.

The story detailed the costs associated with a charity putting together and running a vehicle donation program. Among the expenses incurred by the American Children’s Society in running their car donation program were: paying local used car dealerships to advertise their program; towing cars to the charity’s dealership; and insurance, licenses, government fees, office expenses, parts and repairs.

One of the advantages of working with an organization like CharityCarDonation.com is that instead of having to worry about the management of a car donation program, a charity can let trained experts take care of the hard work, being able to focus their staff’s attention on their mission rather than running a program.