The idea of vehicle donation is a charitable one. So, ensuring your thoughtful gesture is received correctly is your responsibility. If you are sincere about wanting to make a donation that will make a tangible difference to a charitable organization, then here is a comprehensive guide to vehicle donation that will not merely help you in this process but also keep you, the donor, safe from corrupt practices:

1. Donation must be your aim

Your idea of vehicle donation must actually have a sincere thought behind it. Because donors benefit from a tax deduction by donating their vehicles to charities, the number of incidences where people simply look for a way to dump their old, worthless vehicles to charities have increased. While benefiting from a tax deduction is not wrong, making a valuable donation to a worthy charity should be your primary purpose.

2. Do thorough research

Undertake thorough research about which charity or nonprofit organization is in need of a vehicle and inquire if they would actually make proper use of your donation offer. You should assess whether you wholeheartedly associate yourself with the activities of this organization. Do they honestly and efficiently serve the chosen cause selflessly and enjoy an impressive reputation in doing so? You should ensure that the organization is genuine. You can call up the charities yourself to find out what their policies are about vehicle donations. Simultaneously, you can confirm whether the particular charity you chose is awarded the 501 (c) (3) public charity status with the Internal Revenue Service.

3. Beware of for-profit intermediaries

Avoid for-profit intermediary organizations consciously. These agents are famous for the wrong reasons. By misleading donors, not fully revealing their intentions, taking a major share of the vehicle donation, and giving only a small percentage of the proceeds to charities, it is best to bypass intermediaries. For example, most car donation programs only give back between 15-30% of your vehicle donation to the charity you choose. By making a vehicle donation directly to an organization you can ensure they gain 100% from the proceeds. If it is possible, you could drive the vehicle yourself to the intended charity and leave it with them.

4. Transfer of ownership

Signing the title directly over to the charity is crucial. This is to protect yourself from any liability later. It also ensures that the organization you are making the vehicle donation to actually benefits from your contribution.

5. Make use of FMV

You should take into account the Fair Market Value (FMV) of the vehicle when making a donation. This is in your best interest, for the purpose of your tax deduction. Fair Market Value is especially useful when the charity decides to retain your vehicle for its use or intends to upgrade and sell it to use the proceeds for their charitable activities, or when they sell the car to a deserving person at a discounted price. In such scenarios, you as a donor should not be affected with the tax benefit that you are eligible to receive.