Your changes will require approval by an administrator before they are published.
The article has been updated successfully but requires approval before it is published.Last Updated 31st of May, 2010
How can I be sure car donations are going to a good cause?
|
Enter your Zip Code below to get a Free Quote. We suggest getting quotes from multiple companies to ensure you get the best rate. There is no obligation to purchase. 
|
Checking on Charities
Making car donations is a way to help a non-profit organization raise money. Most will even take junked cars off your hands without you having to lift a finger, and you can take a tax-deduction to boot. But how do you know the money will be used appropriately?Most big national charities are easy to check up on to verify their legitimacy. Local charities may have less public information available. But even a local charity should have 501(c)(3) status, which allows it to be tax-exempt.
So, as far as tax exemption goes, donating to a 501(c)(3) charity should be tax deductible but donating for charity purposes (say, you just want to help out someone or some organization), you won’t see tax exemption. If you, for example, wish to donate a car to your kid’s elementary school, you will not be able to take a tax deduction unless it has this status.
Two Ways to Research Charities
There are two starting points to looking up a charity for a car donation:- Find its 501(c)(3) status on the IRS website.
- Look it up at the Better Business Bureau (BBB) to see if it has any complaints.
Questions to Ask
Additionally, during the donate car process you should ask the charity:- What it plans to do with the vehicle donation.
- How much of the proceeds will benefit the charity’s program directly, as opposed to overhead and administrative salaries.
Post Comment for "How can I be sure car donations are going to a good cause?"
To post a comment for this article, simply complete the form below. Fields marked with an asterisk are required.
User Opinions
No users have voted.
Visitor Comments