If you have an old car cluttering your driveway or garage, the idea of Donating it to Charity may be very attractive. After all, you get to help out a worthy cause and get the Vehicle out of your life. That can certainly be a win-win. Stick around and find out pros and cons of donating a car today. However, if you are thinking about making a donation, you need to make sure it’s the best choice for you. Then, you can explore the steps to ensure that the effort you’ll need to put in is worth what you get out. The Pros and Cons of Donating a Car Before you start exploring how you can give a vehicle to charity, it’s smart to consider whether it is the right move for you. There are pros and cons of donating a car, and those could impact your decision. The Pros of Vehicle Donations One of the biggest positives of giving your car to charity is intangible. You get the benefit of knowing that you are helping someone in need, and that can be wonderful. Additionally, you could receive a tax break for your donation. To access this benefit, you must select a qualified organization. Further, you’ll need to itemize your deductions and exceed the standard deduction amount. Otherwise, you won’t see any tax-related gain from making the donation. Another benefit is the ability to get rid of an unwanted vehicle that you would otherwise have trouble selling. This usually includes cars that would cost more to get up and running than they are worth fixing. Some charities will accept wrecked or junk vehicles that don’t run, as long as there is some value in the car. The Cons of Vehicle Donations When you donate a car, that decision comes with a mountain of paperwork. You have to transfer the title and provide any required documents to the charity that’s related to the vehicle. Further, you’ll need to fill out additional tax forms. Gathering information about the car’s fair market value may also be necessary, particularly if you want to claim it as a deduction. Depending on the condition of your car, you might lose out on a money-making opportunity by choosing to donate. If you could sell the car for a higher amount than the deduction is worth, you can end up with cash in your pocket. Even junk cars may be sellable as scrap, so there may be a chance to get some money from vehicles that don’t run, too. While it does take an effort to sell a car, it’s an avenue you should explore. Additionally, you typically can’t donate a car without a clean title. This means, if you are still paying off the vehicle, you can’t donate it. Further, if your lender’s information is still on the title, you’ll need to get that removed. While some lenders handle this automatically after your last payment, some don’t. You may have to contact the lender and ask for […]

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