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How to Donate a Car to Charity

Donating your junk car to a charity like Habitat for the Humanity offers the potential for multiple benefits and is a smart way to do the environment a favor. To maximize the return, follow these steps to ensure your donation helps Habitat for Humanity build more homes and you qualify for a generous tax deduction.

A Few Facts

There are a few facts that make donating your junk car or used car to Habitat for Humanity a prudent choice

• When you donate to Habitat for Humanity the right way, 100 percent of the net proceeds will be used by the local charity to build affordable housing.

• 30 percent of car donations are recycled for materials or sold for reusable parts.

The steel recycled from donated cars requires less energy, uses less natural resources and emits less carbon monoxide than when new steel is forged.

• The environment also wins when donated cars, which tend to be gas guzzlers and detract from air quality, are removed from the road.

Donating is Easy

When you contact Habitat for Humanity, their sophisticated team of donation experts can walk you through the paces. Be prepared to tell them the year, make and model of the car you will donate.

In most states, a certificate of title will be needed to donate the car and receive the proper tax deduction. You will be advised how to sign the car over and instructions as to how to process the title.

When the car is accepted by Habitat for Humanity or its agent and the title is processed, you will be notified as to how it will be picked up by a licensed member of the charity’s network. If you are in a rush, you can expedite the donation and pickup by downloading forms online and processing remotely. There are also ways to expedite special donations through online portals.

After the Car is Picked up

After your car is picked up, it will be sold through a national network of collaborating venues on behalf of Habitat for Humanity. Once the vehicle is sold, you will receive a formal acknowledgment letter in appreciation of your donation. The letter will contain the necessary sale information that will enable you to file your tax deduction.

In addition to your car or junk car, you may also donate trucks, motorcycles, recreational vehicles, snowmobiles, farm equipment, construction equipment, boats and airplanes. All these transport vehicles will be processed the same way.

Many are towed to salvage yards where parts are reused and all fluids are safely removed. Vehicles that can be recycled are crushed, shredded and recycled into steel, which helps reduce the ever-expanding stress on landfills. In a typical year, this program generates enough steel to construct about 45,00 steel-framed homes. Better yet, energy saved from these donations is enough to power about 18 million homes annually.

The revenue is less for recycled cars than for sold vehicles but this is a good way to be rid of that bothersome junk car. However, your deduction will be more if the car can be sold at auction.

If your car or other donation sells for more than $500, you may deduct the entire amount!

Habitat for Humanity program only uses licensed and insured national transport affiliates. You, the donor, are directly transferring your title to Habitat for Humanity, whose agents will transport the vehicle away and dispose of same.

When you donate your vehicle to Habitat for Humanity it not only helps the environment but really is a win-win scenario. Contact Habitat for Humanity to learn more about this popular program and the ensuing tax deduction.

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