Donating your car to charity helps raise millions of dollars for charities across the country. It’s a great way to get both a tax write-off as well as a feeling of generosity. But there’s something that should be known about this industry, which has become a rampant problem amongst many charities that accept donations. The cars you donate are given to a third party to auction off. The cars most always go for under their market value even if they are working properly. These consultants will take up to 75% of the value of the car and the remaining 25% will go to charity. (Unusable cars are junked for about $1000 or less) Excuse me? You heard it correct, your great cause doesn’t seem so noble now, huh? You’re better of selling the car yourself and giving the whole amount to charity if the car is in working condition. The same problem has happened in the business of donating clothes. Once your clothes are donated, they are sent to a third party location which sorts through them for clothes that could have resale value, clothes that are torn which can be turned into rags, and the remaining clothes will be sent to developing countries where the clothes are actually sold again and then resold by the local people (what’s charitable about that?) Most clothes end up being sold to Japan or other places that are looking for American fashion and this has turned into a big business. I know, it was shocking when I found out as well. Let’s examine a few other problems happening with car donations.

• When donating cars was a relatively new idea, you used to be able to write off the perceived market value of your car or sometimes give yourself a generous valuation. Now, you are only allowed to write off the amount at which the car eventually sells for at the auction (for working cars), or what the junkyard perceives it to be worth (non-working cars). It’s sad to see that what once seen as a great cause.

Things To Pay Attention To:

• Make sure the charity is legitimate and they are a 501 c classified charity. The charity is required to send you a letter which states your vehicle description and VIN number to verify the donation. This will come in handy in the event of a tax audit or any other problems that might arise. You also should keep records of the current value of your car in classifieds along with your letter to prove that you didn’t inflate the value of the car. If you really want to be charitable, just your car yourself and then give away the money. Even if you sell it for half of what you want, the charity you donate to will be getting more than they would have otherwise.

Getting Another Car Once You Donate? Make Sure You Know The Following!

• What Insurance Are You Geting? We reccomend AIG Direct or 21st Century for the most relaible and inexpensive young driver insurance. You can also check NetQuote.com to compare Insurance Prices around the web. Also relate to our Complete Guide On Auto Insurance

• Have You Read Our Guide On Buying Used Cars? Read This

• Will You Need A Loan? We reccomend using MyAutoLoan.com
  or Any-Credit-Auto-Loan.com

• Do You Have Good Credit? Why not check for Free with Equifax.

• Getting Another Car? Check out Edmunds.com to start searching today!