Your car is still running fine, but you consider getting a new one. The old vehicle it not really worth much anymore and you decide to donate it to a charity, especially since you are offered a tax receipt in exchange.
By law, a percentage of the sale of the cars donated should go towards charitable programs. Unfortunately, many recipients of the cars only give away very low percentages, sometimes even 1% - keeping the rest!
How to avoid: you should consider a few things before you donate the car. Check with the local Better Business Bureau to make sure the nonprofit association is reputable. Always avoid the middleman. Also, inquire what percent of the vehicle’s sales go directly to the nonprofit organization and sign the vehicle’s title directly to the nonprofit group. Finally, don’t be sky to ask how the funds from the donated vehicle will be used.