Car Donations

One of the most admirable and generous acts you can do after buying a new car is to donate your old car to a non-profit charity.

Try to find a charity that accepts car donations directly so that the majority of the proceeds directly assist the non-profit organization in its activities. Smaller charities with limited staff and resources may utilize the services of for-profit car donation companies to save on overhead costs. If you decide to use one such car donation company, be sure to ask them what percentage of the car's sale price goes to the charity. Ideally, your charity should receive at least half of the generated profits.

This entire process requires very little effort on your part. Most commonly, the charity will come to your home to pickup or tow the car. They will then either auction it off to the highest bidder or sell it to an auto junkyard.

Not only will you feel great after donating your old car, but you may be able to deduct the market value of the car on your income tax return. If the tax deduction exceeds $250, you may be required to obtain proof from the charity in the form of a written acknowledgement. Also, you must itemize your deductions and take into account certain donation limitations.

Organization Non-Profit Ease of Use Popularity
Red Cross Vehicle Donation Center 5 out of 5 Stars 5 out of 5 Stars 5 out of 5 Stars
Wheels for Wishes 5 out of 5 Stars 5 out of 5 Stars 5 out of 5 Stars

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