Your Options for Donating A Junk Vehicle

Considering donating your car to charity? Make sure you pick the right one. WeBuyJunkCarsFast can help you narrow down your options.

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 Having a car that you want to get off of your hands can be a bit of a daunting prospect. What exactly do you do with it?

You could sell it to a private buyer and get cash while also giving somebody a potential new ride. You could just junk it and get whatever the junkyard is willing to give you for it.

Or you could donate it to a charity. Donating anything comes with the benefit of not only getting “rid” of something you no longer want, but also making someone else’s life better. Cars are no stranger to being donated, but that begs the question:

“Which charity is best for donating a car?”

First and foremost, the majority of charities don’t handle the actual vehicle donation process themselves; they cost plenty of money and require a load of manpower most charities don’t have on hand.

They outsource to commercial or nonprofit fundraising organizations, which take care of the details, take their percentage of the proceeds, and forwards the rest to the charity.

In order to make sure that the charity you choose is getting an adequate percentage of the proceeds, it is imperative to donate through avenues with a strong reputation for giving 75 percent or more of the net proceeds to the charity. Anything below 60 percent would be considered unacceptable and not an organization you would want to utilize.

Furthermore, you’re going to want to deal with highly efficient charities, which are defined as those wherein 75 percent of their expenses go towards their programs oriented with their mission.

With these points in mind, here are several car donation programs that check off all the aforementioned boxes:

car made out of dollar bill

1. The Arc Vehicle Donation

The Arc serves and champions for people with developmental and intellectual disabilities. They contract with another charity by the name of Melwood, who is both highly efficient and employs people with intellectual and developmental disabilities.

2. V-DAC (Vehicle Donations to Any Charity)

A commercial fundraising organization that always passes on between 70 to 75 percent of their net proceeds, V-DAC shares their fee schedule in order to be fully transparent with consumers and charities. By removing the guesswork, V-DAC helps charities know exactly how much they will get after the sale of the car.

3. Charity Motors

Charity Motors accepts vehicle donations then sells them to people in need for 50 percent of the fair market value. They are a highly efficient organization that donates a high percentage of the proceeds to a charity of your choice.

Regardless of the sale price, you’ll get a deduction worth the fair market value. This is all thanks to Charity Motors selling the cars at a discount to people in need.

4. Riteway Charity Services

Riteway Charity Services passes between 75 to 100 percent of their net proceeds from donated cars to the charities on their contract. One of these charities is the highly efficient, reputable non profit Children’s Hospital of Los Angeles.

While Riteway Charity Services is highly efficient, some of the charities do get considerably less than others. While this is completely dependent on the value of the vehicle, it’s still usually above 60 percent.

client on computer

These are just the list that we provide, which is only a fraction of the nearly one million car donation programs in the United States today. If you choose to use another organization, make sure you do your due diligence in order to ensure the charity is both a highly efficient and reputable organization.

WeBuyJunkCarsFast: Another Way to Donate

Now, donating a car can be tricky because (unless the organization is highly efficient) then the amount of money donated to the charity is much less than the value of the car.

Furthermore, the deduction you can receive for this donation can only equal what the car is auctioned off for. That’s too much room for unfavorable outcomes after your donation.

Fortunately, WeBuyJunkCarsFast specializes in paying fair market prices for less-than-perfect vehicles. If you’ve got a car you’re willing to donate to charity, consider selling it to us and donating the entirety of your payout to the charity of your choice.

That way, you not only benefit from maximizing your tax deductions, but you also give 100 percent of your profit to the charity and make the biggest impact you can.

Contact us and get a quote for your car in under 90 seconds!

Is It Worth It To Donate A Car To Charity?

Depending on what “worth it” means to you, then donating a car to charity is absolutely worth it. As long as you include it in your charitable contribution deduction, then it can result in a significant tax savings. Also, you may be impacting someone’s life for the better altogether!

How Much Of A Tax Write Off Is A Car?

However much your vehicle is auctioned off for is what determines your write off. If it sells for more than $500, you will be able to deduct the full selling price. If it sells for $500 or less, however, you will be able to deduct the “fair market value” of the vehicle, up to $500.

How Do I Avoid Paying Taxes On A Gifted Car?

In order to avoid paying taxes on a gifted car, the title has to include the word “gift” as opposed to the purchase price. Also, form REG 256 has to be completed. California does not require you to pay taxes on gifted vehicles.

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