Donating doesn’t mean getting rid of the old vehicles we have. It is like gifting the needy with what we have in surplus. If you are in the idea of buying a new car and don’t know what to do with the old car, Donating to charity would be preferably the best idea. Because, donating not only spreads happiness to the receiver, but also to the giver.
California is considered to be the” Golden State” for Car donation as it has enormous charities that receive car donations. And also, 80% of the net proceeds are thrown back to Charity. This is more than any other National organization can do. Furthermore, any car that has higher mileage, but releasing harmful emissions, can be recycled in California. Recycling a car can help in creating steel for use in future vehicles. The areas that fall under the service coverage in California are Anaheim, Berkeley, Burbank, Chula Vista, Daly City, Fremont, Fresno, Garden Grove, Glendale, Hayward, Irvine, Long Beach, Los Angeles, Modesto, Mountain View, Oakland, Palo Alto, Pasadena, Pleasanton, Riverside, etc.
Steps for Car Donation:
- Select the charity you wish to donate and benefit you receive out of it
- Complete the Vehicle Donation Form
- Towing agent will contact you and arrange a feasible timing for picking up the vehicle
- Your vehicle will be sold at auction
- Income from the sale is sent to the charity and tax return letter will be sent to you.
Since there are many homeless families in California, this donation definitely brings a great impact on their living. Like, a transport aid to school for kids, local animal shelter, and it can also be used as a religious institution. Cars that are not in good condition can also be donated. These kinds of cars are bought in an auction and donated to charities by Social companies.
These companies help donors by providing assistance such as
- 24 hours response for donation pickup
- Donation qualifies for a tax deduction
- No emission check is required
- All kinds of motor vehicles such as Cars, Trucks, RVs, and Boats are taken for donation
- Online donation is also available for fast processing
Benefits of Your Car Donation in California:
It really needs an open mind and a big heart to donate. So, the donation gives back pleasure to the donor in the form of benefits. The donor can deduct the vehicle’s fair market value under specific conditions. If it is so, then the donor must reduce the federal income taxes. Filing a regular tax 1040 form is the best choice. If you have many deductions, and if their total exceeds the standard deduction, then it is the net you receive from a tax benefit.
It is always the donator’s wish to deciding the amount to be donated. However, the Internal Revenue Service (IRS) has the limit on your tax return.
Please be aware of the below rules imposed by the IRS.
- When the charity auctions for $500 or less, you can claim either the market fair value or $500, whichever is less
- When the charity intends to make “significant intervening use of the vehicle”. This means the charity will use the car in its work.
- When the charity intends to make “material improvement” to the vehicle, which is “anything that increases the car’s value and prolongs its life” it can be a minor repair or maintenance.
- When the charity gives or sells the vehicle to a needy individual at a significant price below market fair value, and the gift or sale is part of the charity’s mission of helping the needy who need transport.
Some of the affiliated charities that receive car donations in California are:
- 2nd chances rescue
- A broader living experience
- Achieve kids
- Alliance for Children Rights
- Alliance for Smiles, Inc
- American Institute of Ethics
- Bill Wilson Center
- Call of the Sea
- Helping Communities Succeed
- Pathways of Hope
- Reasons to Believe
It is very important to remember that it is “Donating” and not “Dumping”. Hence, give what you have in excess and not what you want to eliminate.