Supporting LGBTQ+ nonprofits takes many forms, including traditional donations, crowdfunding, and corporate giving. However, donating your car is another way to contribute that doesn't involve cash. Let's explore the benefits of donating a vehicle, running or not, to help LGBTQ+ organizations. While it may not yield the highest funds, this is still an option for a number of nonprofits of all sizes. The third party helping to facilitate this process may even take motorcycles, boats, and RVs.
What Happens When You Donate Your Car
It depends on the nonprofit and any third party facilitating the process on their behalf.
1. You May Receive Tax Benefits: The person donating the car is usually eligible for a tax deduction for the selling/fair market value price, but you need to confirm this with your tax professional and the nonprofit. If you usually qualify in the United States for the standard deduction, you probably won't be able to itemize it. Still, car donations are an uncomplicated and hassle-free way to give, mainly because it eliminates the complexities of selling a vehicle. Some folks opt to do this, especially if the car is in bad shape for any reason like it's been in an accident and is beyond repair.
While the funds generated from car donations may not be as high as selling the vehicle privately and donating those funds, every contribution counts. They usually pick up the car from you directly by towing it, which makes it even easier.
2. The Nonprofit Uses It: If it's in good working condition and is a vehicle like a truck, van, or SUV, they may keep it. LGBTQ+ nonprofits can use donated cars to reach the communities they serve. This may look like supporting individuals who are unhoused or folks lacking healthcare access (like on-the-spot HIV and STI testing). This is especially important in rural communities and places with limited public transportation. Other purposes may include transportation, outreach, and logistical support for their initiatives (especially fundraisers like 5Ks that require a lot of supplies or meal delivery programs).
3. Donated to a Family or Person in Need: Depending on the organization, it may be given to a person or family in need, such as those who are low-income. However, this isn't as common.
4. Auctioned, Sold Privately, or Recycled: It's most likely that the car will be put to auction, sold privately, or recycled. Depending on the condition, a person or business may buy it because, oddly enough, dismantling a car and selling the individual parts on platforms like eBay results in a much higher return. It could also end up in a junk or scrapyard for the same reasons, but you'll still be helping keep it out of a landfill.
Challenges in Car Donations
1. Lower Donation Amounts: Car donations may not yield the same financial return as selling the vehicle privately. This is due to the associated fees, including towing, processing, and administrative costs. As a result, the highest donation amount, after these deductions, is often $300. This is usually the same if you trade it in at a dealership when purchasing a new or used car.
2. Transparency: Donors are encouraged to research and choose reputable car donation programs or organizations to ensure their contribution benefits the intended cause. Transparency in the donation process is essential to build trust. It may be best to find another program if they can't answer simple questions such as what documents you will receive, how much money goes to the nonprofit, and what happens after the car is picked up.
Conclusion
While donating your car to support LGBTQ+ nonprofits may not yield the highest funds due to associated fees, it remains a practical and valuable means of contributing while potentially helping you. Every donated vehicle helps these organizations by providing operational support and enhancing their capacity to serve communities.
If you're considering purchasing a vehicle for an LGBTQ+ nonprofit, do contact the organization to inquire about their specific needs and priorities. They might have a particular type of vehicle in mind that aligns better with their critical work or already have an outreach van requiring some upgrades or repairs to reach more communities effectively. By directly discussing their requirements, you can ensure that your donation is more meaningful and amplifies its impact.