Who Takes Donated Cars?
In their Publication 4302 and 4303, the IRS notes there are four ways that charities use your car.
- Charities that actually put the tire to the road and drive your car in their charitable efforts.
- Charities that sell cars that are donated and use the cash to help further their charity.
- Charities that hire an agent (for-profit) to run their car donation effort and get a percentage of the sale.
- Charities that give permission to independent for-profit companies to encourage donations and charge a fee for the use of their name.
A donation to the last variation on the theme DOES NOT qualify as a tax deduction. Well, how would you know? How can you find out which charity is going to benefit both themselves and your bottom line?