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Car Donation Programs

by: RayLam
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Hundreds of charities have begun to adopt car donation programs as a way to raise funds or to provide themselves with no-cost vehicles to help operate their programs. But rather than managing the car donation programs themselves, they will often turn to fundraising organizations to actually handle the donation and auctioning of the vehicles. And that policy can mean a problem for you.

There are two types of vehicle donation programs. The first type of program has a list of charitable or non-profit organizations to choose from. Some of the programs available are like the America's Car Donations Charities Center, which has been operating since 1992. They are renowned for fund raising via vehicle donations for non-profit organizations, and have processed more than 500,000 vehicles thus far! Donate for Charity is owned and managed by Harvard Business School graduates and has been around for more than 20 years. They are the ideal people to contact if you are an organization looking for a fundraiser.

The IRS itself, in recent years, has become alarmed at the proliferation of car donation programs run by fundraisers which end up keeping the bulk of the proceeds they receive for donated cars. The IRS recommends that it you are considering any of the car donation programs, you contact the people running it and get a clear answer as to whether they are charity officials, or private group acting for the charity.

The second group of vehicle donation programs includes the ones organized by associations or organizations of a specific cause, such as the American Lung Association Vehicle Donation Program, National Kidney Foundation's Kidney Cars Program, Cars for Sight for the visually impaired, Car Donation Program by the American Diabetes Association and also Donate a Car for the American Heart Association. Even though most of the programs carry the name car, they normally accept other vehicles as well.

Car donation programs which cannot, or will not, give you clear answers to these questions are not those on which you can depend to see that your ca, or the money it brings gets, to the charity of your choosing. And if the charity does not directly receive the car or its value, you do not have the right to claim the value of the car as a deduction.

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