How to Accept a Used Car Donation
Used cars can be a great asset to any charity. Depending on the condition and mileage, a used car could become the backbone of a transportation network. It could also bring funds through resale, raffle or through selling the vehicle for parts and scrap if it is not in good running order. Remember to make use of the vehicle right away, as storage issues, maintenance costs and other considerations may have a negative effect on the benefit received from the donation.
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Things You'll Need
- Receipt book
- Kelley Blue Book
- National Auto Dealer's Association Guide
- Mechanic
Instructions
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Thank the donor. Give a receipt for the value of the donation so that he can declare the gift against his taxes if desired. The donor can only receive a tax benefit from the donation if the recipient is a 501 (c) 3 organization. The title must be transferred to the charity, making the charity responsible for any fees and paperwork related to the transfer. The receipt given to the donor must state whether the car will be sold, raffled or used.
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Decide how the car will be used, whether as part of your transportation fleet, immediate resale as is, resale after repair or as part of a fundraising effort such as a demolition derby.
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Determine how and where the vehicle will be stored when not in use. Local zoning regulations and land use covenants may affect your choices. Solicit donations of space in storage yards, local parking lots or parking garages if you do not have space you are permitted to use for short and long term vehicle storage.
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Shop around for the best deal on insurance if the car will be used for transportation. Make any necessary repairs to ensure the car will pass emissions tests and safety inspections. This is especially important if the vehicle is to be resold.
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Get the car titled and registered in the organization's name by following the guidelines at your local Department of Motor Vehicles (DMV).
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Tips & Warnings
To calculate the value of the car, consult Kelley Blue Book or the National Auto Dealer's Association Guide (see Resources below). Use a combination of the options on the vehicle, the mileage and any damage or visible wear when determining value.
