You might think that the only things that you can possibly get out of donating junk cars is clearing some space in your yard, and giving the local pest population one less nesting spot. While these are both true and completely valid reasons for donating junk cars, they are by no means the only reasons there are. For one thing, you can actually get a deduction off of your taxes, just for donating that old automobile of yours.
Many times you tend to take help of the intermediary firms to donate cars probably because you have shortage of time, and then make a mathematical calculation. At least ask the organization about how much they pay to the charity from the selling of the donated car. If the answer is about flat $100 on used and old car regardless of the price of the car or about $2,000 per month, then your donation is not eligible for the tax rebate and deduction.
The best reason for you to donate your junk car is, it becomes a handy tax write off. You just need to obtain a receipt for it, to show that it went to a good cause, and your CPA will see that you get credit for it when tax season comes around.
The car donation process is fairly simple. Basically you call the donation center of your favorite charity or look one up on the internet. For example, if you live in Chicago you might type into Google "donate a car Chicago". Before calling a donation center you need to understand a few things. Usually the charity will not accept vehicles that are older than twenty years old. Also, if your vehicle isn't worth at least one hundred dollars they most likely will not want it. The reason is because most car donation places will sell the vehicle at auction. By the time they pay for the tow truck and auction fees they will not make a profit on a hundred dollar vehicle.
If the donation company wants your vehicle they will pay for towing and all the expenses for the transfer of ownership. This is the great thing about donating your car to charity, because they will remove it for you and take care of the paperwork. The bonus is that if your charity is not for profit then you can get a tax deduction for your vehicle. Ask the person over the phone if they are a 5013c company. If they say yes then ask if they give tax receipts.
As soon as you get your vehicle donated to a charitable organization, they will provide you with a receipt of the auto donation. This receipt is very useful for tax deduction purposes. Moreover, the organization will ensure that the vehicle is collected. These charities send in their volunteers for picking up the vehicle from wherever place you require. It is important that you are holding the title of the car at the time of donation. If this is not so, make sure you obtain a copy from the Department of Motor Vehicles.