Mizuki Yance

Used car donation programs may not be the best option for many. Before you call me selfish and Parochialistic, for not supporting charity, I want you to read the rest of article and understand why I don’t support donating used cars in most situations. Donating a car may easier since it is just calling a 1800 number. First of all, I donate to charity personally and I strongly believe that donation to charity helps changes many lives and bring in fulfillment in one’s life. Charity is essential for greater good of the humanity, but I would prefer to do it in an efficient way.

First of all, car donation works well only when the car is in good working condition. Let me ask you a question. How many of us donate a good working condition car? We donate it when it is about to break apart into pieces. In most cases, we donate broken cars, and the charity ends up not utilizing it effectively. The result is the auction company that auctions the car end up with most of your money. Not the Charity.

The second reason is conversion. Ask the mainstream car donation charities how much of money they get from the donation reaches the needy. You will be surprised with the % figure you get. Not their fault, and they may not misuse it, but it take a lot of effort to convert your junk into cash. Look at the Charity navigator ratings on program efficiency. You will be surprised that most car charities operate at an efficiency of less than 50% Recently I read a news article about a charity here in my city, which spent 70% of the money in their call center operations alone. And think about their infrastructure required to take possession of the junk you are delivering, (towing) inspect it and sell it.

Third, donors are under the illusion that they get to reduce their tax. This is false. You get to reduce only the income that is taxed. Those are two different things. So what I do I recommend, you do with your used car?

So in a nutshell, If you have a car and in great condition that you are willing to donate and if you find a car charity that has a high program efficiency (greater than 65%) than call that 1800 number. If not disposing it through a Junkyard or Craigslist and donating the cash to Charity is a much efficient option.