Donating a Car to Charity? Better Follow These Tips to Avoid Frauds – The world of charity is filled with fraudulent characters, but what about donating a car to charity?
Why should you donate a car instead of selling it?
Well, there are reasons why selling a car is better than donating it. However, some people are so angelic that they would rather donate their car than to sell it. To those characters, hats off to you ladies and gentlemen for the world is lacking good individuals such as yourself (I would have sold the car instead of donating it).
There are many countries in the world, and they have different ways of taxing you. In some countries, when you sell a car, there is a chance that you would be taxed for it. This, of course, is never a good thing for those who does not like paying taxes (paying taxes is compulsory. I do not condone any tax evasion). People in those countries would rather donate their cars because of that reason. By donating a car, you might get a tax deduction, thus lowering the amount of tax that needs to be paid. This kind of prospect might be enough for people who do not like to pay their taxes.
The first tip to avoid getting tricked is to research the available charities
You should research the charity you are going to donate to. While there are establishments that make themselves ‘look’ like a charity business, I am pretty sure only a little of those establishments are actually a real charity business. To help you in researching the charity business, there are things you can look at to make sure that it is not a fake business. You just need to look at its status. In the USA, if it got a 501(c) non-profit status, then it is a charity business. If it does not have that kind of thing, it is not a charity business. This makes differentiating between the fake ones and the real ones as easy as pie.
Re-researching the charities also help
you would again need to research the efficiency of the charity. Say you have found five charities that you think are real. From those five charities, you need to narrow the charities down to a count. You do this by analyzing which one would be the most efficient and which one would not burden you that much in the future.
Get a receipt after the car is sold
Charity business works in a way that you donate your car to a business, said business will get the money that will be donated, and the business is obligated to give you a receipt of the sale. The receipt of that sale would be used to help you deduct the tax later, so this kind of makes the receipt one of the most important things to get. Any licensed charities would give you a receipt, so if you do not get one after your car has been sold, chances are that they are a fake charity.
That is almost all of the gist about car donations. If you want to donate a car, you need to look at the charity business itself, do another research on it, and ask yourself for a receipt. Hope this answers your ‘donating a car to charity?’ question, people.