Car donation programs offer an excellent opportunity to support your favorite charities, gain a tax deduction, and contribute positively to the environment. Yet, with vehicle values on the rise, the number of car donation scams has surged. In this guide, we’ll explore 5 easy ways to steer clear from car donation scams.
1. Put in some effort; Avoid falling for the ‘quick fix’
When you look up “car donation” online, the top results often won’t serve your best interest. Nearly 80% of the time, when your search results appear, the top ads are fraudulent. Scammers will pay top dollar, leaving this term among the priciest in Google searches. Unfortunately, this leads to your search being scattered with false domains and scam charities. Avoid the temptation for a quick fix by avoiding the first car donation program that pops up, or at least do some research. If it seems too good to be true, it most likely is in fact, too good to be true.
2. Select a charity you trust and a brand you recognize
Most reputable charities will gladly accept your car donation in their own, unique way, so start your search there. Look for organizations that you recognize based on their contributions to your community and beyond. Steer clear of catchy slogans or flashy advertisements. Be cautious of organizations with names that sound similar to well-known charities, such as “National Cancer Society” instead of “American Cancer Society.” Scammers often pose as legitimate charities, so if you’re considering donating to a ‘wish’ organization or a ‘children’s’ charity, proceed with caution. These pages sometimes aren’t who they claim to be. In many instances, there may be no children involved or very few wishes being fulfilled. Make sure to conduct thorough research to avoid giving your car to fraudulent organizations.
3. Ask how the proceeds of your donation are distributed
It’s crucial to ask this question, as many fraudulent organizations dodge it. Make sure to find out what percentage of the gross proceeds actually goes to the charity. According to reports from the California Attorney General, charities usually receive less than 40% of the total funds raised. If a charity can’t guarantee at least a 70% return on gross proceeds, steer clear. Focus on the gross return rather than settling for information about net percentages. Car Donation Wizard takes pride in offering an impressive 80% return of gross proceeds, the highest among vehicle donation programs!
4. Find out who else benefits
Most charities do not manage their vehicle donation programs directly. This is because their focus remains on providing their charitable services rather than being a used car dealership. This does however, create a potential risk. It’s important to understand all the parties involved. With some donation programs, when you donate to your beloved nonprofit radio station, your vehicle’s proceeds might actually go to a different organization or even a religious organization. Some organizations may offer you gifts or vacations in return for your vehicle. Remember what we said about something seeming too good to be true? If the program is mainly run by a dealership, it probably does not prioritize the charity’s interests. Remember to ask about how and where the funds will be distributed, and be mindful of the distinction between spending on programs versus marketing. The car donation world can withhold many undisclosed benefit arrangements, so remember to be cautious of who you’re actually dealing with.
5. Directly assign your title to the charity or their representative
When you make the decision to donate your car, it’s essential to correctly transfer the title to prevent any future liability concerns. Make sure not to leave the title unsigned. You should designate the charity or their agent as the buyer. If you require assistance with signing your title, Car Donation Wizard provides state-specific guidance on our website.
Legitimate Car Donation Programs
Now that we’ve reviewed the 5 easy steps to steer clear from car donation scams, let’s cover a few more things…
Before you fully commit to donating your vehicle, it’s essential to ensure that the charity you choose is reputable and trustworthy. While many car donation programs will make an attempt in the form of an emotional plea for your contribution, only a small amount will truly benefit the charitable cause. Utilize resources like Charity Navigator to identify a nonprofit that aligns with your donation goals. After choosing an organization, remember to ask about the percentage of the gross proceeds that will actually support the charity.
Here are some well-known and reliable charities that accept car donations:
- Habitat for Humanity
- American Cancer Society
- UNICEF USA
- Special Olympics
- Car Talk Vehicle Donation Program
To see a full list of charities we partner with, click here. If the charity you’re looking for isn’t listed, use our Cars for Charity program to donate a car to the charity of your choice.
Should I Donate or Sell?
Selling your car can be a fast and straightforward way to turn it into cash. If you’re aiming to gather some extra funds to buy a new car, You Call We Haul is here to ensure you receive the best price for your old car. In addition, donating your car comes with numerous advantages, such as:
- A positive effect on the environment. Up to 75% of a car can be recycled. Most vehicles that are donated are at the end of their life cycle and are recycled in an eco-friendly manner.
- Maximized returns for your charity. Car Donation Wizard proudly donates an average of at least 80% of the gross proceeds from your vehicle’s sale to the charity of your choice, which is the highest return among vehicle donation programs! On the other hand, many car donation initiatives typically return only 15-35% of the gross to charity, often reporting it as 50-70% of the net proceeds.
- A tax advantage. If you itemize your deductions on your income tax return, you might be eligible to claim a tax deduction for your charitable car donation. Donors who itemize can deduct the fair market value of any donated vehicle up to $499. If your car sells for over $500, you can deduct the entire selling price.
Tax Advantages of Donating Your Car
If you itemize your taxes, donating a car to charity can lead to a valuable tax deduction. For vehicles that sell for under $500, you can claim the fair market value of your donation, capped at $499. To find out your car’s fair market value, check resources like Kelley Blue Book, Edmunds, & NADAGuides. If your vehicle sells for more than $500, you can deduct the entire selling price. Following the sale of your vehicle, you’ll receive a donation receipt to use for tax purposes. Think of this as a reward for following the 5 easy steps to steer clear from car donation scams!
Keep in mind that if a charity offers goods or services in exchange for your donation, it may reduce the amount you can claim on your tax deduction!
Donate Your Vehicle with Donation Wizard
If you’re considering donating your vehicle and want to ensure your contribution has a meaningful impact, Car Donation Wizard is your go-to resource. Our program embodies the core values that every donor should expect from a vehicle donation initiative. As the authorized agent for trustworthy 501(c)(3) charities, we ensure that the proceeds from your donation directly support their missions. We prioritize, and understand the importance of transparency throughout the donation process, helping you steer clear of any potential scams.
Car Donation Wizard accepts a wide range of vehicles, including cars, trucks, motorcycles, boats, snowmobiles, trailers, and RVs. We love sharing the stories and photos of our donors on our Facebook and Instagram pages. To date, we’ve successfully raised over $325 million for our charity partners. Remarkably, we return 80% of the gross proceeds from each vehicle to the charity—more than any other vehicle donation program can claim! Visit our website or call us at 877-957-2277 to discover more about the charities we support. We can promise you that Car Donation Wizard will make your vehicle donation into a rewarding and memorable experience!