The concept of making a donation to a charitable or non-profit organization by offering your vehicle (in place of physical cash) is known as vehicle donation. This may be a convenient way to raise funds for a social cause while giving a car to an organization that could use it towards their fundraising efforts. Here are some frequently asked questions about donating your vehicle to charity:

1. What vehicles can be donated?
Any vehicle that you can offer to be sold by the charity or non-profit to make money for their philanthropic activities is accepted for a vehicle donation. Used vehicles, old ones, those in working condition, those vehicles that are rundown and battered, simply any vehicle that can be sold in exchange for money can be donated. So motorcycles, cars, trucks, SUVs, RV’s, sailboats, motorboats, tractors, trailers, just about anything called a ‘vehicle’ in towable condition would be accepted for a vehicle donation.

2. What are the benefits of vehicle donation?
One of the significant benefits of vehicle donation is tax deduction by the IRS. Especially if you file an itemized tax return, you are eligible to deduct the sale value of your donated vehicle or the fair market value up to $500, whichever is greater.

If you are planning to dispose of your vehicle, then offering it to a worthwhile charity or nonprofitable organization that you are passionate about makes sense. This way, apart from feeling good about making a donation, you can also eliminate the stress associated with discarding a vehicle like having to advertise for its sale, meeting prospective buyers, etc.,

3. What exactly happens with a donated vehicle?
When you arrange for your vehicle to be picked up for donation, depending on its condition, it is either taken to a service/mechanic center to be repaired or to the auction center directly to be resold, by a professional vehicle transportation company. At times when the vehicle is in a really worn down condition, it is sold to dismantlers or recyclers.

4. What is the paperwork involved in vehicle donation?
While no smog/emission certificate is necessary and all issues like non-availability of title or lost title documents can be resolved by the organization accepting the vehicle donation, it is important to make a proper title transfer. In order to not be legally bound or liable for any action of the buyer, you as a donor must ensure title transfer is done clearly and swiftly while donating your vehicle.

5. Is there any cost for vehicle donation?
For the person donating a vehicle, there is no cost whatsoever. When the donated vehicle is sold for a price, the costs incurred are recovered from it. In the event the cost of vehicle donation exceeds its selling price, then the organization that accepted the offer would bear the expenses spent on that.

6. How much money will my charity actually get?
Actual costs paid for towing, auctioning, and other processing expenses are deducted from the money generated from a vehicle donation. In a fair situation, anywhere between 50% and 80% of the net sale revenue is what the charity would receive.