Donation Guide

In this guide-

+ Background on car donations
+ Features and services to look for in car donation charities
+ How to find the best car donation charity for you

This short guide was created to help you understand the basics of car donation charities and to help you choose the right car donation charity for you. We do not offer any car donation services ourselves, so you can be assured that all of the information in this guide is independent and unbiased.

Background on car donation charities
Donating your car, truck, trailer, boat, motor-home or other vehicle is an increasingly popular way to contribute to charitable organizations. Not only does car donation help those in need, but it also eliminates the hassle of selling your car yourself AND can give you a tax deduction. When you donate a car to charity, the car will typically be sold through a dealer network or at auction, and the proceeds of the sale will be used to fund the charity. However, some car donation charities will take the car, refurbish it, and give it directly to needy families or other groups.

If you are currently considering donating your car to a charitable organization, you've probably already seen that there are dozens of charities 'competing' for your business. But not all charities are the same, and if you're conscientious enough to donate your car to charity, you probably also want to make sure that your donation has the most positive impact on the cause you want to support.

There are three main types of organizations that will accept your car donation. The first type is not really a charity at all, but is a for-profit company that acts as a clearinghouse for car donations. These car dealers and professional fund-raising companies handle all the logistics of the donation and sale of the vehicle and then give those proceeds to the 'end' charity of your choice. Although these car dealers and professional fund-raising companies can provide a valuable service, they do take a certain percentage of the value of the vehicle- this is money that therefore does NOT go directly to the charity.

The next type of organization that accepts car donations are clearinghouses as described above, but is non-profit. These car donation charities have car donation as their only function- they handle the logistics of the donation and sale, and then give the proceeds to other charities. As non-profit organizations, more of the donation makes its way to 'end' charities when compared to for-profit dealers and fund-raisers.

The third type of organization that accepts car donations is charities that handle the logistics of the donation and sale and then use those funds internally for charitable                        

How It Works

AMCDONATE wants to help you help change the world. Through innovative partnerships and vehicle processing, AMCDONATE is able to convert your vehicle donation to significant value for charities. The process is simple:

You initiate the donation of your used vehicle by filling out or quick online form or calling us directly --at the same time choosing the project to which you wish to apply the benefits - undesignated donations benefit "AMC Programs", "African Projects" and "Building Projects"

We send you a receipt via email.

We dispatch your vehicle to a pick-up location in your area who will call you within 1-2 business days to arrange a pickup, or you can drive it to one of our nationwide processing centers

A tow company will pick up the vehicle (you don't necessarily have to be present!)

We convert your vehicle into much-needed cash that the charity needs and can use.

Donate your used vehicle and feel good about giving and contributing to a world changed for the better.

We Love Trucks!!! -- Donate Now!

Frequently Asked Donation Questions

What if I'm missing some of the paperwork?
When you donate the property, you are signing a Warranty Deed, guaranteeing clear title (ownership) to the Charity. In order to protect the Charity, we always close the transaction through a title company or attorney with Title Insurance. The Title Company will perform a title search, and insure the title to the property.

How long does it take to see if the charity is interested in my property?
Typically the Specialist will be able to determine if the property will make a suitable donation at the appointment. If the Specialist recommends the donation, we can complete the Donation Package paper work at that time. Please note that if there is more than one owner of the property, or the property is owned by a married couple, all parties must be present to sign the documents.

The Donation Package consists of 4 documents:
1. A Quit Claim Deed from the Donor to the Charity.
2. A Warranty Deed from the Donor to the Charity
3. A Donation Agreement
4. A Declaration and Deed of Gift

What is a suitable donation?
After the inspection the charity will decide if the property will make a suitable donation. This is a donation that the Charity is reasonably certain that it will be able to:
1. Quickly liquidate and convert the property into cash for the charity;
2. Be utilized immediately by the charity

How Long Does it take to Donate a Property?
The time we receive your initial information to transfer is typically 90 days. Other factors may substantially delay the process. Examples are: breaks in the chain of title; Potential purchasers not being able to gain access to the property; Non cooperative tenants; Liens and other clouds in the Title.

What is the liquidation period?
Upon signing the Donation Package, the you are conditionally conveying fee simple absolute title (ownership) to the property. The Charity will then holds the deeds in escrow for a maximum period of 120 days until final acceptance of the property by the charity, or a Purchase Agreement is signed by the Charity and a Buyer. If a Purchase agreement is executed by the Charity with a buyer, the Liquidation Period will be extended until the date specified in the Purchase Agreement. The liquidation period is over when the property is sold by the Charity at the closing or the 120 day period expires, which ever is later. The Liquidation Period may be extended by mutual agreement of the Donor and the Charity.

What is a Simultaneous Closing?
A Simultaneous Closing is a closing in which a Donor conveys title to the Charity, and the Charity "simultaneously" conveys title to the new buyer. The Charity uses a simultaneous closing in combination with the Liquidation Period to limit its liability.

What documents are recorded prior to the end of the Liquidation Period?
Typically the Quit Claim deed is recorded to protect the Charity's interest in the property.

Do I still own the property during the Liquidation Period?
No. You have transferred all of your interest and rights in the property to the charity.

Can the Charity reject a property that was previously deemed a suitable donation?
Yes. Rarely, during the Liquidation Period the charity may decline the donation, even if it was previously determined to be suitable In rare cases, a property is accepted that the Charity is unable to liquidate. Reasons may include previously undisclosed or latent defects with the property, environmentally contaminated properties, or uncorrectable title issues. In this case, the entire Donation Agreement would be declared null and void, and the charity will rescind any interest in the property. If you are aware of any issue that may affect the liquidation of your donation, please disclose that to us during the initial phone call, or the initial inspection. Non-compliance may result in a later rejection of your donation.

After I donate a property, when does my financial and legal liability end?
At the end of the Liquidation Period, when the Charity resells the property.

What if the Charity still can't sell the property after the Liquidation Period?
Typically the process takes about 90 days from the time the Donation Package is completed until final acceptance at the Simultaneous Closing. Per the Donation Agreement, the charity has a 120 day Liquidation Period to sell the property. If the Charity has not been able to secure a purchase agreement within the Liquidation Period, the Liquidation Period may be extended by mutual agreement of the Donor and the Charity.

What Costs will I have?
You will be responsible for any of your regular costs, such as taxes, maintenance, mortgage, etc, until the Charity liquidates the property. The only other costs you will incur is if you decide to pay for a Qualified Appraisal. A residential appraisal typically costs less than $300.

Do I have to maintain the property during the Liquidation Period?
Yes. You are responsible for maintaining the security, upkeep, maintenance, and any other regular costs of associated with your property until the Charity Closes the Donation Transaction.

Do I need to pay for title work?
No. The charity will pay for the Title Search, Title Work, and any Closing Costs.

When Can I claim the deduction?
You claim the deduction in the tax year the property was donated.

How Much Can I Claim?
You have 3 options:

1. You can pay for a Qualified Appraisal, and use that value for your deduction,
2. You may elect to use the tax assessed value assigned to the property by the local taxing authority. However, the IRS may contest this amount during an audit,
3. The IRS allows a Real Property donation of up to $4999 without a Qualified Appraisal.

You should discuss your tax situation with your Accountant or Tax Professional.