Tuesday, 22 January 2013


Classic car donation is different from traditional car gifting in that the value of antique automobiles is generally much higher than the average modern gifted vehicle. However, this also means that there are often issues with safety and repairs that many donors will seek to correct before gifting the car. Others will prefer to donate the car as-is, even if it’s not road worthy. There are charities that will cater to both types of donors.
--> Nevertheless, some legal experts recommend that the donor take all steps necessary to professionally correct any potential safety liabilities that could cause problems “down the road.” Alternatively, many donors work with an attorney to have a document drafted that transfers these issues and the task of mitigating them to the receiving party. It’s a small price to pay for peace of mind.


Donating a classic car should be a simple and efficient process, but in most cases it’s not. This is because many donors of classic cars don’t understand that the donation process isn’t always easy. There are potential scams, serious tax issues and other pitfalls that could render the experience financially and morally worthless. Protect your gift by arming yourself with the following critical information about classic car donation to ensure that what you give is used in the best way possible. --> All too often donors do not conduct necessary due diligence when it comes to selecting a charitable organization. There are hundreds of reports from around the country of cars being “donated” inadvertently to a charity that wasn’t approved by the IRS. This means that, in most cases, the donor won’t be able to claim the fair market value of the vehicle as a deduction.

Worse still are the cases where donations have been made to groups that pose as charities but actually sell the donated vehicles for cash profits.

To alleviate these concerns, ask for documentation proving the charity’s status. If you’d feel more comfortable doing your research discreetly, you can confirm a charitable organization’s status online through the Better Business Bureau, GuideStar, or Charity Navigator.

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