Donate Your Car for Kids: How about you turn your old vehicle into something special for the children in need in America? It would mean a lot to a bunch of children when you will donate your old car to a charity that caters to children. Learn all you need to know on how to donate your car for kids. Being a car owner, you know how important a car is for running errands, going on a family trip, doing your daily commutes. But have you ever thought how much difference an old junk sitting in your garage will make to someone else’s life? Well, several organizations in the US are dedicated to children’s charity, and they will happily take your old vehicle.
But by giving your old car to a children’s charity, it is not only they who will benefit, but you will get the tax credit too. So if you plan to get a new car, why not donate the clunker to a kid’s charity. They will make the process of taking the old car off your hands easy while making a difference to the kids’ lives.
Car Donation Made Easy
Most charities that accept cars for donations make the process as easy as possible for the donors. All you have to do it take the personal items out and the rest of the work will be taken care of by the charity. You do not have to refill the gas, make repairs or even wash it. The organization will do all. Most charities also help you with the required paperwork to ensure that the process of car donation is hassle-free for you.
Furthermore, most of these organizations offer free towing. This is especially beneficial when your car is not running anymore. Often the towing cost for a non-functioning vehicle can be quite expensive. When you choose a kid’s charity to donate your vehicle, they will pick it up for free. Also, they accept most of the cars that are in terrible conditions.
Charitable organizations that accept cars for donation do not limit their acceptance to vehicles only. They take RVs, trucks, fleet, boats, trailers, even golf carts and motorcycles. They make the process of getting rid of your old clunker easy.
Donate At Your Convenience
Most charities have a number that you can call to donate your car or go online and fill in the required Form to start the process. In most cases, if you do the process online, a representative of the concerned charity will contact you and arrange a free pickup of the vehicle.
The process allows you to make the donation at your own pace and schedule the vehicle’s towing as per your (donor’s) convenience.
Get Tax Write-off
When donating a car to a charity, make sure it is a non-profit organization with the 501(c)(3) registration. This means you can get 100 percent of the market value of the car written-off from your tax. Any donation you make to the charity before 11.59 pm, on December 31, 2021, you will get the tax deduction for 2021.
With car donation made this easy for you to kid’s charities across the US, do you want to know how you can donate the car to one such charity and help the kids?
How To Donate Your Car For Kids?
Before donating the car, there are few things you need to take care of, one of them, but the vital one is the paperwork. So after you find the charity for the kids that you want to give your old clunker to, you have to do the necessary paperwork to ensure the process is complete, you are not liable for the car, and you can get your tax benefit from the donation.
The Vehicle Title
You need to sign the title properly in most cases. However, the requirements can vary whether you need to have a title or not differ from one state to state. We hence recommend that you check the state-specific information from local DMV or IRS office.
In case if you have lost the title of the vehicle, you can get a replacement easily. Some charities can get it for you, where you (the registered owner) have to sign some paperwork during the pickup. In some cases, the charity can ask you to get the replacement before handing over the vehicle.
Vehicle of a deceased owner
If you have a car sitting in the garage that belongs to a deceased member of the family, registered charities can take vehicles. Still, during the pickup, you need to show the signature from the estate’s executor along with the death certificate.
If you find an abandoned vehicle and want to donate it, the process is unlikely to happen as most charities do not accept such cars. They need to do some paperwork which also includes the signature from the vehicle’s last registered owner.
Release of liability
In most states, the license plate needs to be removed and returned to DMV after the towing truck arrives to take the car. In some states, the license plates need to stay, so it is better to find out from local DMV what the regulation is.
Also, you need to fill the Release of Liability Form to the DMV that ensures you are no longer responsible for the vehicle. However, each state once again has a variation to this rule or some additional paperwork. Hence, we recommend contacting your local DMV to know the details.
Tax write-off documentation
To enjoy the tax write-off, you need to itemize the deduction and do the necessary paperwork. It includes the acknowledgement of the donation from the charity or the 1098-C Form. If the car’s market value is over $5,000, you need to get it officially appraised at least 60 days before the donating it. Also, you need to have the right tax forms depending on the value of the car and submit the documents accordingly, which are:
- $500 or less: All you need is the records of the vehicle’s valuation and the amount it was sold for.
- $501 to $5,000: File the tax deduction with a written acknowledgement from the charity or Form 1098-C and Form 8283, Section A.
- Over $5,000: File the tax deduction with a written acknowledgement from the charity or Form 1098-C and Form 8283, Section B. In case the vehicle is not sold or auctioned by the charity, then a written appraisal of it.
Next time you plan to buy a car or think of selling off the old junk, consider donating it to a kid’s charity. You will be able to help those who need it and give back to the community.