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5 simple steps to avoid car donation scams

5 simple steps to avoid car donation scams

Donating an old car is a great way to support a charity that needs it. It can also help one get benefits like tax deductions and contribute to environmental sustainability by recycling an old vehicle that would otherwise be unused. But, one should not rush the process, as it can make them fall for donation scams. Being careful here can help ensure the donation goes to a charity that needs it.

Step 1: Conduct detailed research
When planning to donate a car, starting with an online search for charities that need cars is a good idea. But, one should avoid relying solely on the first result they get. Taking it slow and reviewing multiple suitable options can help one find a deserving and reliable charity.

Step 2: Pick a known charity
Many well-known, legitimate charities accept donated vehicles. So, one can begin by shortlisting popular organizations. Donating to a charity one has engaged with in the past is also a safer bet than going with a completely unknown organization. One should avoid relying solely on advertisements and catchy jingles while choosing a charity. Dishonest charities may also use names that sound just like those of popular charities. Scammers also pose as legitimate institutions. So, one should carefully check the spelling the organization uses and the email ID (if interacting via mail).

Step 3: Ask the right questions
One should always contact the charitable organization and ask how it intends to use the donated car. One should also ask about the expected gross proceeds if it sells the car. Generally, the donor’s tax deduction is limited to the organization’s gross proceeds from the sale. One should avoid engaging with any charity that fails to provide a clear picture regarding its intent.

Step 4: Engage directly with the charity
One should be careful while transferring the car title and getting the car delivered. It is best to work without an intermediary and drive the car to the charity. One should also avoid leaving the title blank. Instead, one should add the charity as the buyer.

Step 5: Maintain records
One should ask for receipts and proper documentation as proof of donation. It is also important to avoid charities that request additional donations by wire, gift card, or cash. The safest way to pay is via credit card or check, if necessary. While donating, one should review the documents and check the recipient’s name before signing any document.