There are some things you should know though, before going ahead and making the donation.

Did you Know?

• Did you know that the vast majority of car donation programs are run by for-profit used car dealer/fundraisers?
   
• Did you know that in many cases the lion's share of the proceeds from your auto donation go to the used car dealer/fundraiser, with at times as little as 10% going to the charity?
   
• Did you know that according to the IRS, unless you donate your car directly to the charity and place the name of the charity on the title, your donation might not even be tax-deductible?
   
• Did you know that even some well-known and respected charities are not licensed to legally process your auto donation in some states?

At fundraisingmom.com, we found all this out together with information about fraud, and we decided to pass on this information to help people wanting to donate their car. 

As of 2005, the IRS has published new guidelines limiting the deduction granted to the greater of $500 or the actual sale price of the vehicle by the charity. (See below.)

This new rule removes most of the profit out of the donation scams, and we expect to see a big drop-off in reported incidents.

The bottom line is BE CAREFUL. 

Starting January 1, 2005, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.

To see what the IRS recommends to do to make sure your deduction will hold, click HERE

Download the IRS Non Cash Charitable Contribution form HERE

To contact us here, email webmaster (at) car-donation-scams.com.