Donating a Car

General Vehicle Donations Tips

While donating a vehicle to a charity may be a noble gesture, as well as being financially rewarding, potential donors should be sure to do their homework first.

To begin, 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.

Considering this, it's a smart move to check with the Better Business Bureau, the Wyoming General's office, or the Secretary of State's office to see if the organization has a favorable track record and is registered with the state.

Tax Savings

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 on the matter, or download the agency's vehicle donations publication.

Consulting with an accountant or a tax professional is also a good idea.

Donation Procedure

Be sure to assign the vehicle title to the charity, and complete a bill of sale.

Also, remember to let your insurance company know that you no longer own the vehicle.