Avoiding Car Donation Scams
When it comes to charitable organizations, there exists an inevitable reality that people might try to scam you by claiming to be a genuine charity which accepts vehicle donations. A donated vehicle is then typically sold at a wholesale auction and the revenue generated gets pocketed. Fortunately, with a little research, these fraud charities can be easy to avoid.
Investigation of the charity which you intend to donate your car to is crucial. Once you’ve found a charity, it’s important to do a little background check. Start by calling them and asking questions. The first potential sign of trouble is an organization which doesn’t divulge specific information about their donation process.
Another way to find out whether or not a self claimed non-profit organization is indeed not for profit is to ensure they have been registered. This can be done by contacting your state’s Attorney General or Internal Revenue Service. Bear in mind that not all states require charities to comply to registration. You should double check the charitable organization’s legitimacy by consulting with the Better Business Bureau, who has their own lists of reputable organizations.
A very important question to begin with would be to inquire about what happens when you donate your car. If the car is going to be sold at auction, make sure the organization is willing to notify you when it’s sold, as well as tell you the value it sold for. Also be sure to ask whether the organization will provide you with a receipt for the purposes of a tax deduction.
Registered charities are required to provide you a confirmation that a tax receipt has been sent in exchange for the donation of your vehicle. If the car has not yet been sold, the organization should notify you when your tax receipt will be sent. Always do follow-up calls approximately one month after you donate to check on the status of your tax receipt.
Be suspicious of any form of solicitation. Very often fraudulent charities will rely on “donations” by means of soliciting. Most emails sent asking for your consideration of donating a vehicle typically tend to fall into these categories.
Also be weary of soliciting in the form of phone calls. Although some legitimate charities use some solicitation, this is a tactic emphasized in the case of middlemen or fake charities. Often times the organization will call potential donors and use high pressure sales tactics. They will try to persuade you into donating your vehicle to their so-called worthy cause, when they really are not affiliated with a registered charity in any way. If you suspect that the person on the other end of the phone is not a representative of a registered charity as they claim to be, you should ask to be placed on their Do Not Call List.
With some careful attention, choosing a charity in which to donate your vehicle can be a very rewarding experience. Taking the time to ensure that the charity is genuine and reputable can help make this experience hassle-free and enjoyable
Topics: avoiding donation scams, donation scam, charity scam, fake charities, car scams