How to Steer Clear of Car Donation Scams

Looking for tips on how to avoid car donation scams and do the most good you can with your donation? We’ve got you covered.

avoid car donation scams

Donating your vehicle is a great way to help your favorite charities. Vehicle donations can be incredibly beneficial to trustworthy charities, and grant you a tax deduction. However, there are fraudulent organizations out there, looking to capitalize on your goodwill and generosity. 

Here at Car Donation Wizard, we have been keeping donors informed since our blog began back in 2010. Unfortunately, not all charities — or donation companies — are created equal. There are fraudulent organizations out there, so it’s best to do a little research before handing over your vehicle.

To make sure you’re covered, and your car donation helps the charity you want to benefit, follow these easy steps.

How to Avoid Car Donation Scams

  • Research the organization.

    • Some nonprofits spend more money on their board members’ lavish lifestyles than on charitable work. Charity Navigator is an excellent resource for looking into the charity.
    • Look into the donation company that the charity works with. If you’re constantly hearing radio jingles and driving past endless billboards, you have to wonder how much money actually goes to charity…
    • Car Donation Wizard’s charity car donation programs return the highest percentage of the gross dollar from each vehicle donation to your charity. 
  • Don’t fall for flashy gifts or vacations in exchange for your car.

    • If they are bribing you for your car, how much money is left over for the charity?
    • The amount that you can claim depends on how much your vehicle sells for, minus any goods or services given to you in exchange; if an organization is promising you that you can claim the fair market value of your car….you may want to ask a few more questions.
    • Consult the IRS’ Guide to Vehicle Donation or reach out to one of our representatives at 877-999-2322.
  • Sign your title.

    • Car Donation Wizard has detailed and color-coded instructions on how to sign over your state-specific title, from Alaska to Wyoming, and all 48 states in between!
    • The title is the deed to your car, and if you leave it unsigned, you are leaving the door open for liabilities and headaches. If you have any questions about how or where to sign on a title, our trained representatives are a  phone call away 

Make sure you know who is taking your car, and the work that they do. It is shameful that some con artists take advantage of people who only wish to be generous, so it’s best to make sure you have all the knowledge to make an informed donation, and avoid car donation scams.

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