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Should I Donate My Car Or Junk It?

by Feris Wall

 

It’s true. If you have an old car, it’s likely not going to go many places. It probably had a good life, but right now, that life is over. What you need to do is figure out where the final resting place will be for this vehicle. Previously, we asked whether or not you should fix this car or simply junk your car and be done with it. Now it’s time to ask this simple question which is, “Should I junk my car or donate it?”

Companies That Will Take Junk Cars As A Donation

Is it true that there are some companies that will take junk vehicles as donations? It really is! We’ve explained that there is a lot of money in junk cars even if they cannot be driven on the road. There are charities that will be more than happy to take your junk cars from you because they can sell them to auction houses and salvage yards and make good money. So why not donate a junk car and help save lives? 

One of the best things about doing this as you can help charities that can benefit from your donation, plus you can use this as a tax deduction and feel good at the same time. Simply find a charitable organization that will be happy to receive your donation, but you must first consider a couple important points:

If you do find a company that will take this, the IRS needs to regard them as a 501(c3) organization.

This organization should also be able to accept your vehicle as a donation.

The company should also be regarded as a tax exempt business and must be listed in the IRS database which will serve as a form of verification to make sure it is a 501(c)(3). You can also call the IRS if you would like to get this information using their toll-free number at 877-829-5500. As long as you can get their correct address and name before you call, everything should work out just fine.

Extra research on charities might also be important to make sure that your donations really will be helping people in need. By doing so, you can feel good inside about donating your junk car because you will know it will be put to good use.

Ways To Find The Right Charity For Your Vehicle

You should see how much the administrative costs are for each charity and how much they actually use with the community from donations.

If they are using less than 15%, that is an indication they are doing things right.

In some cases, you will notice that the businesses will hire other companies to handle the donations. This is legal, but there will be a substantial amount of money going to these businesses instead of the charity of your choice.

Going through third might also be a good option, and make sure that when you are using the name of the charity that the title is transferred properly, or the government may not be very happy. As you know, if the IRS is not happy, then no one is happy.

Does the charity tow your car or truck for you? In most cases, they will, though you may also find businesses that will charge you which can seem quite unfair since you are giving them your vehicle.

 

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