Guide to Buying a New Car
Donating a Car
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Donating a Car
General Vehicle Donations Tips
While donating a vehicle to a charity may be a noble and financially rewarding gesture, potential donors should do their homework first.
Find out as much information as you can about the organization you're intending to use, including the percentage of the sale that goes to the organization, what they intend to do with the vehicle, and if the charity qualifies as a tax-exempt organization.
Unfortunately, scams are common in the vehicle donation field. To make matters worse, they can be hidden anywhere along the line, including within the charitable organization, the organization re-selling the vehicle, or even the towing company.
It's a smart move to check with the Better Business Bureau, the Delaware Attorney General's office, and the Department of State office to see if the organization has a favorable track record and is registered with the state.
While donating a vehicle could result in a significant savings on your taxes, the tax laws concerning vehicle donations are complicated. So it's wise to check with the Internal Revenue Service, or download the agency's vehicle donations publication.
Consulting with an accountant or a tax professional is also a good idea.
Processing the Transaction
Of course, if you donate a vehicle to charity, you'll need to transfer the ownership of the vehicle, too. This procedure varies depending on whether the charity is based in or outside Delaware. The Division of Motor Vehicles (DMV) provides instructions on how to handle either situation.
Donors must also send either a completed report of sale or back of registration card to the DMV at:
- Delaware Division of Motor Vehicles
- Data Management Section
- P.O. Box 698
- Dover, DE 19903
By notifying the DMV of the sale, you legally free yourself from issues that might arise after the vehicle is out of your possession.
Charities
Check out just a few of the organizations you can use to donate your car.
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