Kids And Car Donation

When you give your car to charity, it can help kids in many different ways. Depending on the type of charity to which you donate your car, you might be helping fund important programs or you may directly affect a poor child’s life by making it possible for a parent to work. Here’s what you need to know about car donation charities.

Direct Donations vs. Car Donation for Sale

There are 2 different kinds of car donation charities. The first type takes donations of vehicles that may be repaired, then gives or sells them at a minimal amount to families in need. The families must meet very particular guidelines, such as a requirement that the car will allow a person in the family to get or keep a task. The second kind of program accepts automobile donations of working automobiles or those that require very small work and sells them at a profit, that is donated to a children’s charity or used to fund the charity’s own work.

Donating Your Automobile for a Charity’s Use

There is another category of car donation – donating a car to a charity for the charity’s own use. For example, you may donate your van to a local children’s charity which outfits it with safety features and uses the van to transport children to recreational programs, or to pick up and deliver foods to low-income families.

Tax Treatment of Car Donations

The type of charity donation is important because it affects the amount of the deduction you can make on your taxes. Based on the use made of your car after you donate it, you may be able to deduct its full Blue Book value from your gross income or only the amount that the charity realized when selling your car. Before you sign any documents, make sure that you comprehend exactly what you’ll be able to subtract from your taxes when you file. Unless of course the car has a really low value to begin with, you’d do best to consult your tax accountant or a financial planner to assist you decide the best way to donate your vehicle to charity.

What Happens When you Donate Your Car

In many instances, donating your automobile to a charity for kids is a easy process on your end. You call the charity and inform them that you wish to give your car to charity. An agent of the automobile donation agency will meet with you and provide you with an appraisal of the car’s worth. He’ll also bring paperwork for you to sign. The paperwork is your receipt and ought to include the name and address of the charity, the value of your donation and any other information that your state and the federal government require the charity to collect. If the charity intends to sell the automobile and make use of the profits for their charitable works, they will explain to you when and how they’ll inform you of the final selling price of your vehicle, which will dictate the amount you can deduct as a charitable donation on your taxes.