Are There Actually Car Donation Scams?
Are There Actually Car Donation Scams?: Donating a car to charity is a very humbling experience knowing that you have contributed to someone else’s means of sustenance and additionally taking the advantage of tax write-offs. Many organizations are involved in making the whole process easier for the donor; however, unfortunately there are dirty fish in the pond. Fish that aim to take advantage on their behalf that are popularly known as car donation scams. They do exist and abundantly. You should steer clear of them to make sure your car donation is put to the best possible use, along with protecting yourself and your tax interests.
To successfully avoid car donating scams, you have to be proactive to stay informed on all available options of the charitable programs. The best way is to donate to a charity nearby and whose work you have seen firsthand. When you donate to a disreputable charity the chances of being swindled increases.
Another red flag is employing an intermediary for collection and sale of the vehicle. Lawfully speaking, a percentage of the sale of a donated car should go to charitable programs. Regrettably, often times the transfer of funds to charity translate to only one percent, allowing the intermediary to keep most of the worth of the car. In the US, there is no policy of the IRS requiring the intermediary companies to contribute a specific percentage of the car sale proceeds to the charity. Negotiation occurs with the charity and an amount is decided.
Furthermore, you should avoid donating to a car donation charity that does not have tax-exemption status by the IRS. Not only the donor advantage reduces but it also raises question on the workings and goals of the charitable organization. Not having recognized by the IRS for tax-deduction purposes can indicate a car donation scam.
Keeping in mind all indicators of vehicle donation scams, be mindful to check these criterions before donating a car. Do thorough research by contacting different advertised firms and by reading reviews by previous donors. Inquire about the percentage of car sale proceeds to the charity and how the funds will be used.