auto
7 mistakes to avoid when donating a car
Donating a car has several benefits – it reduces the stress of junking or selling the car, helps out a charity, and lowers one’s tax burden. As a result, many people have been opting for these donations. However, the experience is not as hunky-dory as it sounds. Before donating, one must understand the process well and avoid certain mistakes to avoid scams or traps. Read on to learn more about them. Failing to research the charity When donating a car, one must start by checking the charity’s legitimacy and that it supports a cause one truly cares about. Not only will this help establish their trustworthiness and credibility, but it will also give one peace of mind regarding their donation. For the initial round of research, donors can look up charity reviews and ratings online. This can help shortlist a few options. For a thorough approach, consider visiting these charities in person and understanding what they do and how they do it. Speak to friends and family to learn if they have any valuable advice or insights to offer. Not verifying the charities’ tax-exempt status Donors who are looking for tax exemptions must complete this step. Ensure the charity is considered tax-exempt under section 501(c)(3) of the Internal Revenue Code.