If you have any useless vehicle, you can make a vehicle donation. It can be a auto donation, truck donation, airplane donation or any kind of vehicle donation. This particular type of donation has been growing fast in the past few years. In the year 2000, the whole tax deductions from non cash donations were $47 billion. From this amount, 4% or about $2 billion came from vehicle donations. There are organizations and programs created to handle vehicle donation processing which we call the vehicle donation programs. The main ones being:
- Vehicle Charity
These are essentially mosques, educational or medical organizations. They can opt for handling vehicle donation’s process alone or leave it to fund raisers (below is the explanation of what they are). If you want to know more about In-house charities, click in auto charity to read all the information that you need about them. These organizations must be qualified to offer tax exemption by the government (IRS), here is a list with the qualified organizations: publication 78. Or you can easily find the qulified charity in your area through our search box Home page.
- Fund raisers
Fund raisers are large organizations that may target profit or not; they will handle the vehicle donation process and its tasks, such as auctioning, pickup and selling. They are essential in the vehicle donation business. After selling the vehicles they will usually take a percentage of the vehicle donation and split it with vehicle charities. This is what we like to call fundraising system.
How to do a vehicle donation (auto donation) ?
You will have to look for a vehicle donation charity. They are easy to find, you will see their advertisements on radios, internet and newspapers. Additionally, a vehicle donation is profitable. You will win money by tax deduction and also by helping people who needs it (contribution base). Furthermore, donating a vehicle is absolutely free. The donation car pickup won’t cost you anything.
When looking for a vehicle donation charity, make sure to choose a reliable one. It is a vehicle donation charity that is qualified to provide tax exemption. You must avoid doing an auto donation without having plenty of information about the vehicle charity exactly because such charities may not be regularized by IRS and therefore you will not qualify for tax exemption.
Furthermore, keep in mind that IRS will not approve deductions based on unfair market value. So if the organization is offering you a high price, distrust it. Otherwise IRS will not allow you to get a tax exemption for your vehicle donation .
Contact the vehicle car donation charity and inquire them about the processing details and any other questions that you might have. Another important factor is how much percent will be designed to charity purposes, if it is equal or above 70%, that’s fine. If it is lesser than 40% then you should look for another vehicle donation charity.