When it comes to car donations, many people wonder how to donate a car that doesn’t run? In this article, we walk through the process of donating a non-operational vehicle while also shedding light on the benefits and considerations of donating a car to charity.
Why Donate a Non-Running Car to Charity?
Before we go through the steps of how to donate a car that doesn’t run, we’ll explore why someone might consider donating a non running car in the first place! Here are just a few pros of donating a car.
- Supporting Charitable Causes: By donating a non-running car you can contribute to charitable organizations and their missions. Your car can be sold and the proceeds used to fund initiatives that make a difference in the community.
- Environmental Impact: Broken down or non-running cars can be detrimental to the environment, for example, due to leaking fluids or deteriorating components. By donating, you could help to mitigate these concerns by ensuring responsible disposal where required.
- Tax Benefits: Donating a non-operational vehicle can provide you with tax benefits and you can often claim a deduction based on the fair market value of the vehicle. It’s advised that you get a quote first to understand the approximate fair market value of your car and speak with a tax advisor.
- Free Towing: Although not all, most charitable organizations offer free towing services for non-running vehicles which means you can part with your car without incurring additional expenses for moving the car.
How to Donate a Car That Doesn’t Run?
Now that we understand why you might want to donate a car that doesn’t run, let’s take a closer look how to donate your non running car.
- Find a Reputable Charity: Before you can donate your car, you need to find a charity that accepts non running car donations. There are many charities out there and it’s important for you to find one that resonates with you. You should ensure the organization is a registered 501(c)(3) nonprofit organization as this is a requirement for tax deductions. Car Donation Centers work with a number of charitable organizations who accept car donations, to discuss your car donation call 877-689-0815.
- Gather Vehicle Information: Gather all necessary information about your car ready for your donation, this includes the make, model, year and Vehicle Identification Number.
- Contact the Charity: Get in touch with the chosen charity and inform them of your intention to donate so that you can ask them any questions you might have and so they can guide you through the donation process.
- Schedule Towing: Typically, the charity you are donating to will arrange for towing of your non-running vehicle at no cost to you, but you’ll need to confirm this with your chosen charitable organization first. If they do offer free towing, then they’ll arrange a time and date to collect your car.
- Complete Paperwork: You’ll need to sign the donation forms provided by the charity to establish the transfer of ownership of your vehicle, then, the donation is complete! Simple!
- Receive a Tax Deduction: After the donation, you’ll receive a receipt from your charity which will allow you to claim a tax deduction. It’s advisable to consult a tax professional for some guidance.
Things to Consider When Donating a Non-Running Car
While donating a car that doesn’t run is a good gesture and a noble thing to do, there are some considerations to keep in mind too.
- Fair Market Value: You should find out the fair market value of your non-running car as to understand your tax deduction. The IRS has specific guidelines for calculating this.
- Tax Documentation: You should keep a record of the documentation from your donation including the receipt provided by the charity. This information will be required to claim your tax deduction.
- Vehicle Condition: You should be transparent about the condition of your car when speaking with your chosen charity so that the charity can determine whether they are able to repair, resell or recycle parts of your car. It also helps to get an accurate fair market value estimate too.
Donating a car that doesn’t run is not only a positive thing to do for the community but it also comes with other significant benefits to yourself! While you can support charitable causes and make a positive impact to your community, you can also reduce the environmental impact of owning your non-running car, remove the financial burden of repairing or maintaining your car and enjoy the tax benefits too. So, if you have a non-operational vehicle taking up space then you might want to consider donating it to charity!