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What do Charities do With Car Donations?
Many people who donate car to charity hope that the charity will give the car donation to a deserving person. Some charities do give away car donations, but they are in the minority. Those charities only give away cars that are in good condition and run. The reason is because the charity, like a used car dealer, by law can only give or sell a car to a needy person that passes inspection and meet the emission standards.
Most cars that are donated need some type of repair. Many car donations have major body damage or some mechanical problems and are donated because the donor does not want to fix it or cannot afford to fix it. Again, the charity is required to repair the car before they are allowed to donate car or sell it to a deserving person. Often, the cost these repairs is more that the value of the car. That is one of the major reason why most charities sell car donations directly to used car dealers or to parts yards either directly or through auctions.
One of the other reasons, most charities do not donate car is the fear of being sued by the recipient. If the charity donate car to someone that later breaks down, the charity will may be liable for the repairs. In the worst case scenario, if the recipient gets into an accident with the car which results in injuries, the charity may have some major liability problems.
Another obstacle involved when a charity donate car to someone is the expense of car insurance, title and registration fees and license plates. The recipient has to be able to afford these items and have them before they take possession of the car. The charity cannot donate car unless the beneficiary has a valid driver’s license, insurance, license plates, etc.
When you consider the costs and liability issues involved it is not hard to understand why most charities choose not to donate car to needy people. It is not that charities do not want to donate car to people in need; it is that there are too many obstacles involved.
Author Resource:-
Karen Campese is the Co-founder and CEO of Cars4Charities, a not for profit car donation center. They have over 1,000 respected charities that you can donate car to. When you donate your car, you get a tax deduction and help a good cause.
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Many people who donate car to charity hope that the charity will give the car donation to a deserving person. Some charities do give away car donations, but they are in the minority. Those charities only give away cars that are in good condition and run. The reason is because the charity, like a used car dealer, by law can only give or sell a car to a needy person that passes inspection and meet the emission standards.
When a person calls a charity to ask about car donation, they usually ask what their tax deduction will be is they do donate car. The answer is a little complicated. When you donate car to charity the amount you can claim on your taxes depends on two things; the fair market value of your car and what the charity does with the car.
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