Car Donation Scams

While many people want to do something good by donating their cars to charity, they need to be aware that there are a number of car donation scams out there. It is not always easy to tell the legitimate programs from the car donation scams, so people must be careful about how and where they donate their vehicles.

First of all, many nonprofit organizations are not actually set up to take automobile donations. There is a lot of work involved in being permitted to collect and process donated vehicles, and not all charitable organization have been willing or able to set up such a program for themselves. If they do still accept donations of this sort, then they must do it through a third party. These companies are often referred to as intermediary agencies.

Do Intermediary Agencies Equal Car Donation Scams?

The short answer to this question is “not necessarily.” Some intermediary agencies are truly serving an important purpose for nonprofit organizations that couldn’t otherwise accept car donations. They are able to pick up the cars, transfer the titles, take them to auction, and distribute the funds back to the nonprofit. Of course, they do all of this for a fee. If the fee is a reasonable one, then it is certainly worthwhile for the nonprofit organization to go ahead and pay it.

On the other hand, it is not unheard of for intermediary agencies to expect 50% or more of the proceeds. This might even be on top of the towing and title fees. In the end, the nonprofit organization could end up with as little as 10% of the actual money raised by a donated vehicle. Even if it’s not technically illegal, it’s not hard to recognize that these are car donation scams.

Other Car Donation Scams

In general, there are two things to keep in mind if you decide to go through an intermediary agency to donate your car. First of all, how much of the proceeds will actually go to the nonprofit organization? There are disreputable companies out there that say they are picking up a vehicle on a nonprofit’s behalf, but then they keep all of the money themselves. This is basically auto theft. In order to avoid this, or even intermediary agencies that just take more than their fair share, talk to the organization you want to support. Ask them if they’ve found the agency to be reliable in the past. Make sure that they’ve not only been receiving a reasonable cut, but that they’ve been getting paid at all.

Finally, be sure that the nonprofit you’re donating to is designated as a 501(c)(3), tax-exempt organization. If they have a different designation, such as 501(c)(4), then you may miss out on the opportunity to receive a tax deduction for your donation. It’s not unheard of for car donation scams to be as simple as just omitting a few details so someone will donate under false pretenses.

The majority of car donation programs are going to be legitimate, but doing just a little bit of homework will keep both you and your favorite charity from becoming victims of car donation scams.

New York Car Donations Made Easy

Whether you’re trying to get rid of an old car taking up space, looking to downsize your gas expenses and go green by getting rid of your car entirely, or simply seeking a great way to make a tax-deductible contribution, donating cars in New York is a great way to make a difference. With so many commuting opportunities and forward-thinking, eco-friendly families in the state, donating cars in New York has become a streamlined, hassle-free process that brings millions of dollars to charities both locally and around the United States.

Types of Car Donation Centers in New York

Donating cars in New York is best accomplished by one of two means: finding an organization that matches donors with charitable nonprofits or donating directly to an organization with vehicle pick-up capabilities.

The first type of organization – companies that pick up cars, convert the vehicle or its parts to money, and then provide a portion of the proceeds to a charity – are typically those used by those seeking to donate their used vehicles. By acting as a “middleman,” these organizations assume the cost, risk, and responsibility of acquiring the donations for a fee, which is then taken out of your donation. You typically get to either choose an organization from their list of affiliated charitable nonprofits or you can simply allow your funds to be disbursed equally. Either way, your donation is tax deductible, and you typically have to do little more than provide your title and a pick-up location.

The second type of organization – charitable nonprofits with a large enough means to create their own car donation department – typically offers consumers a big name with which to supply their donation. For example, Habitat for Humanity and the American Diabetes Association take direct vehicle contributions. In these cases, a larger percentage of your donation actually goes into the charity, since the secondary “middleman” is erased from the equation.

Why Donate?

Both options are a great way to unload a vehicle you no longer need or want. Opportunities are especially substantial in New York, since there a wealth of nonprofits awaiting assistance. For example, if you want to assist New York-based organizations like the YWCA, area food banks, or local rescue missions, there is no better opportunity than to seek contact with a local “Cars for Charity” organization. It’s simply a great way to help the community in which you live, and because pick-up is locally-based, someone is typically available to pick up your car within one to two business days.

Making a Difference

Car donation is one of the easiest types of charitable giving available today. Whether your car is outdated, no longer runs, or simply weighing you down with upkeep costs, donating cars in New York is as easy as picking up the phone or filling out an online form.