If you're thinking about donating your car, consider what route will get the most cash to your charity or non-profit. While most non-profits accept non-cash donations like cars, stocks, or other durable goods, not every charity is equipped to handle the liquidation process. These charities are forced to go through a for-profit companies to handle the towing and the paperwork. Often these vehicles are sold in the wholesale market. These can be taken apart and sold for parts, or simply sold for a profit that goes to the partner company and not the charity. Your tax-deduction is also limited to the amount that actually went to the charity and is completely minimized in this whole process.
Make sure you and your charity get the most out of your donation and not the for-profits. When your car is donated, it will either be sold as is, refurbished and sold, or refurbished and given away. The cars sold as they are are the ones that tend to go on the wholesale market, which will sell quickly, but for nearly 5% what you might earn in the retail market. The latter two tend to get a higher tax-deduction and will sell for something closer the the fair market value of your donation.
idonate.com is a service to non-profits that seeks to sell non-cash donations for the highest possible price in order to give the charity as much of the donation as is possible. Let idonate save your time and effort to put your car in the markets already available to us. Visit www.idonate.com for more information.
Information taken from: “Claiming more than Wholesale Auction Value when Donating a Car to Charity.” (www.yourcardonation.com) Lauren White