This
short guide was created to help you understand the basics
of car donation charities and to help you choose the
right car donation charity for you. We do not offer
any car donation services ourselves, so you can be assured
that all of the information in this guide is independent
and unbiased.
Background
on car donation charities
Donating your car, truck, trailer, boat, motorhome or
other vehicle is an increasingly popular way to contribute
to charitable organizations. Not only does car donation
help those in need, but it also eliminates the hassle
of selling your car yourself AND can give you a tax
deduction. When you donate a car to charity, the car
will typically be sold through a dealer network or at
auction, and the proceeds of the sale will be used to
fund the charity. However, some car donation charities
will take the car, refurbish it, and give it directly
to needy families or other groups.
If
you are currently considering donating your car to a
charitable organization, you've probably already seen
that there are dozens of car donation charities 'competing'
for your business. But not all car donation charities
are the same, and if you're conscientious enough to
donate your car to charity, you probably also want to
make sure that your car donation has the most positive
impact on the cause you want to support.
There
are three main types of organizations that will accept
your car donation. The first type is not really a charity
at all, but is a for-profit company that acts as a clearinghouse
for car donations. These car dealers and professional
fund-raising companies handle all the logistics of the
donation and sale of the vehicle and then give those
proceeds to the 'end' charity of your choice. Although
these car dealers and professional fund-raising companies
can provide a valuable service, they do take a certain
percentage of the value of the vehicle- this is money
that therefore does NOT go directly to the charity.
The
next type of organization that accepts car donations
are clearinghouses as described above, but is non-profit.
These car donation charities have car donation as their
only function- they handle the logistics of the donation
and sale, and then give the proceeds to other charities.
As non-profit organizations, more of the donation makes
its way to 'end' charities when compared to for-profit
dealers and fund-raisers.
The
third type of organization that accepts car donations
is charities that handle the logistics of the donation
and sale and then use those funds internally for charitable