How the scam works:
Your old car is still running fine, but you consider getting a new one. The old vehicle is not really worth much anymore and you decide to donate it to a charity, especially since you are offered a charitable 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 give away very low percentages, sometimes only 1% - keeping the rest!
How to avoid:
You should consider a few things before donating the car. Check with your local Better Business Bureau to make sure the charity is reputable. Always avoid the middleman. Also, inquire what percentage of the vehicle's sales go directly to the charity and sign the vehicle's title directly to the charitable organization. Finally, don't be shy to ask how the funds from the donated vehicle will be used.
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