Frequently Asked Questions:
Here are answers to frequently asked questions about Cars For Neighbors.
Will you take a car that isn’t running?
CFN will take cars that aren’t running. Call 763-717-7755 to arrange to have your car towed.
When I donate a car – where do I sign the title?
Sign only the front of the title. Print and sign your name exactly as it is indicated under Seller. If more than one person is listed on the title, both must sign.s.
Should I remove my license plate?
How do I determine my tax donation amount?
CFN is required to provide written notification of the disposition of the vehicle within 30 days. You can request a 1098c form from CFN to claim the deduction. Your tax donation is the sale amount.
What tax forms will I need if my vehicle is worth more than $5000?
It’s mandatory that you get an independent appraisal if your vehicle value is above $5,000. You must fill out and file Section A of IRS Form 8283 (Non-cash Charitable Deductions). You must also fill out Section B (the required appraisal). For more information, check out IRS Publications 561 (Determining the Value of Donated Property) and 526 (Charitable Contributions) available on-line from the IRS website.
What happens if there’s a problem with my car after it’s donated?
Once CFN takes possession of your car, CFN assume full responsibility.
What happens when a car is donated?
- The vehicle title is placed in Dealer Hold (eliminating any further liability concerns)
- The donor receives an official Car Donation Receipt.
- Cars for Neighbors inspects your vehicle.
- Upon disposition of car, the donor receives a letter of disposition.
- The car is sold.
- If the car is sold for over $500 the donor will receive an IRS Form 1098C for tax purposes.
- Any proceeds from a sale are used to benefit the Cars for Neighbors repair clients.
Can I write off my donation?
According to IRS publication 526, if you donate a qualified vehicle to a qualified organization and you claim a deduction of more than $500, you can deduct the smaller if:
- The gross proceeds from the sale of the vehicle by the organization.
- A deduction of $500 or more requires an IRS form 1098-C from the qualified organization.