The Ultimate Guide to a Smarter, Safer, and More Impactful donate a car today

Part 2: The Critical Crossroads – Choosing the Right Path for Your Donation

Not all car donation programs are created equal. Your good intentions can be diluted or even misdirected if you don’t choose your recipient wisely. This is the most important step in the process.

1. Charity Direct vs. Third-Party Intermediaries

• Donating Directly to a Charity: Some larger, well-established charities (like Goodwill or Kars4Kids) have their own in-house vehicle donation programs. This is often the most efficient model, as a greater percentage of the proceeds from the sale of your car goes directly to the charitable programs you wish to support.
• Using a Third-Party Service: Many organizations outsource their car donation programs to for-profit intermediaries. These companies handle the logistics—towing, auction sales, paperwork—for a fee. The critical question to ask is: “What percentage of the gross sale price does the charity actually receive?” Reputable intermediaries will be transparent about this. Be wary of any that are not.

2. Vetting Your Charity: Due Diligence is Key
Before you pick up the phone, spend 15 minutes on research.

• Check their 501(c)(3) Status: Ensure the organization is a registered tax-exempt public charity. You can verify this through databases like Guidestar.org or the IRS’s Tax Exempt Organization Search tool.
• Review Financials: Look at the charity’s Form 990, which they are required to file with the IRS. This document reveals how much money they spend on programs versus administrative and fundraising costs. Sites like Charity Navigator or CharityWatch provide ratings based on this financial health and transparency.
• Understand the Mission: Make sure the charity’s work aligns with your values. Do you want to support local, community-based efforts or large, national research initiatives?

3. The Questions You Must Ask
When you contact the donation program, have a list of questions ready:

• “How will the proceeds from my car be used?”
• “What percentage of the sale price goes to the charity?”
• “What happens if my car sells for less than $500? For more than $500?”
• “What paperwork will I receive for my tax records, and when will I receive it?” (You should get a formal acknowledgment within 30 days of the sale).
• “Do you handle the DMV paperwork for title transfer?”
• “Is the towing free and available in my area?”