Car donation in Toronto offers an amazing way for people to help charities and save money through tax deductions at the same time. Many people who want to get rid of their old vehicles that are no longer functioning choose just to donate them for these reasons. You should probably do the same. But before you donate a car to any charity, you need to familiarize yourself with the process and consider some important factors.
1. Choose a charity wisely.
The popularity of car donation in Toronto has resulted in cases of fraud and deceptions. To prevent getting scammed by fake organizations, do some basic research. You can also look for Canadian charities on the Canadian Car Donation Directory’s official website. Make sure that the charity you are choosing can give you tax-deductible receipts. Otherwise, your charitable contributions may not be considered tax-deductible.
2. Submit a donation form.
Charities will require you as the donor to fill out a donation form before you send the car or transfer the ownership to them. You will need to provide your personal information, including the information about your vehicle. After that, you may send your vehicle to them, or they can pick it up from your home.
3. Don’t forget your tax form.
After assessing the value of your vehicle, the charity will mail your tax forms to you. Make sure to keep pictures of your receipts, so you have proof to show when claiming tax deductions.
You may be wondering: Instead of donating a car directly to a charity, why not sell used cars in Toronto to auto wreckers, then just donate the money you’ll get from scrapping the vehicle to your chosen charity? If you haven’t found a charity yet, the auto wrecking company may be able to recommend one for you. This is another way to ensure that you are giving your money to a registered and legit non-profit organization and that you will get your receipt to claim your tax deduction. Many charities also prefer to work with auto wreckers so that they no longer have to go through the hassle of selling the donated cars at auctions. Also, auto wreckers accept any type of vehicle. They can surely turn any old car into cash.