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Tips for donating that old car
By Andrea
B. Abramowitz • Bankrate.com
Drew Avril knew that it was time to get rid of his
1987 Nissan when he decided to move from Long Island to the Big
Apple. After hearing several radio announcements about car donations
to charities, he figured, why not go that route?
Drew decided to go with the United Cerebral
Palsy organization: "It's reputed as a credible organization
-- there are a lot of shady organizations out there. And I grew
up with a couple of people who have cerebral palsy."
Drew did it right. He was familiar with the
organization, he felt an attachment to the group and he did his
homework, looking them up on the Internet to double-check on what
they were saying.
Personal
experiences drive donations
Many people are prompted by personal experiences, and want to
help out a specific cause. William Armstrong of New Rochelle, N.Y.,
heard a radio ad for car donations by the National Kidney Foundation.
Having suffered a kidney stone, he thought donating his car to the
organization would be the right thing to do.
"I had a 1980 Ford Econoline Van that became
surplus," says Armstrong. "It would be of more value to
someone else than it was to me. And this produces revenue for a
charitable group."
Use the following tips as a guide to donating
your car to a legitimate charitable organization.
Match
your passion
Do you have a heart for the homeless, or affection for a special
medical foundation, church or synagogue? Then, consider giving to
an organization that you have an affinity for.
The most important thing is to be an informed
giver. Follow these steps to be sure your car helps a good cause:
- Find out if the group is eligible to receive
deductible car donations. Ask for a copy of the organization's
Internal Revenue Service Determination Letter that verifies the
group is tax-exempt as a charity under section 501(c)(3) of the
Internal Revenue Code.
- Do a background check. Ask the organization
for information, such as a recent Form 990 (a useful source of
information about the organization's mission, programs and finances).
- Ask what happens with donated cars. Some
charities will use them to help carry out the group's service
activities; some charities will sell them to raise money for the
organization.
- Ask how much the charity gets for the cars
that are sold. The charity may receive a flat fee such as $100
per car, a percentage of the actual sales price, or a combination
of the two.
- Ask about receipts and forms. The charity
should give you a receipt that verifies a car donation was made.
Some resources for helping you out with your
charity check-up include IRS Publication
78 and the BBB
Wise Giving Alliance.
-- Updated: Dec. 2, 2003
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