If you have a car that you are thinking of getting rid of, there are a few options. The one most people think of first is to sell the car, but depending on your tax bracket, you can often get an even better benefit from donating your car to a nonprofit organization.
Every car charity operates slightly differently. So, you will want to be sure to always ask about their policies. We base our assessment upon one of Los Angeles most-established car charities, Blok Charity Auto Clearance. They have sold an impressive 80,000 vehicles over the last decade and are the “go-to” charity for car dealers and the public alike.
Blok only accepts cars that are in working condition. They sell them either at their lot or at auctions they hold once a week. If you have a car that is not in driving condition, it can still be donated, but you need to determine whether the charity you are working with will take it. Many will take the car, unless the cost of towing it exceeds the value of the vehicle
Typically, you select which charitable organization you would like the proceeds to go to or you can donate your car directly to your charitable organization of choice. Whether you want to help battered women, starving children or finding a cure for prostate cancer, the proceeds from your car can go directly to what you believe in.
Your tax benefit is usually equal to the amount of money the car was sold for. Sometimes you can claim fair market value for your car if the charity you are working with directly gives your car to someone in need as a part of a charitable contribution. Within 30 days of your car being sold, the charity should send you the necessary paperwork for your taxes.
When you donate your car, you will need to answer questions about it – like indicate the year, make, model, etc. You will also be asked what condition it is in, if it is drivable, how many miles it has, etc. Make sure to have the title ready as well. Charities put cars in different categories depending on their condition. Cars that can be driven are typically put up for auction or sold on a lot. Cars that have major mechanical issues, are typically sold to scrap yards or sometimes fixed by the charity. Blok Charity Auto Clearance has a mechanic inspect all of their cars and fix them if needed.
If you would like to rid yourself of that old clunker that is taking up too much room in your garage, donation can be a great option for both the recipient and your taxes. There are a variety of charities throughout the nation that accept donated cars. Do your homework and find one that works for your situation. We have been impressed with Blok Charity Auto Clearance and their system of selling and inspecting vehicles. They also provide a great service to those who need an inexpensive car.
