You may have wondered how auto donations raise funds for charities. Charities are not in the auto business, so what do they do with your car? Most charities use fund raisers to handle vehicle donation. The fund raiser usually works with many charities who receive cars as donations. They handle the paperwork associated with auto sales and salvage, and arrange for the actual sale of the vehicle. Following the sale, they deduct the cost of processing and their fee, and send the balance to the charity specified by the donor. If no charity is specified, the proceeds are split among all the charities who work with the fund raiser.

Some large charities may do the fund raising job themselves and even handle auto donation fund raising for other charities. However, most charities prefer to deal through fund raisers who handle the time consuming paperwork and other details for a fee. Fund raisers are for-profit companies, but the charities that depend on them would not be able to benefit from car donation without them.

If charities were to attempt to handle these donation programs themselves, they would have to buy tow trucks, hire drivers and pay someone to handle the paper work required by state governments for the transfer of vehicle ownership. The cost to the charity would likely be greater than the cost incurred by using a fund raiser.

Fund raisers allow you to choose the charity to benefit when you donate your car. Charities involved in auto donation programs report that they receive between 20% and 80% of their total funding from these programs. Without the proceeds from these programs, some charities would be unable to continue their work. The work of fund raisers benefits the charities and the donors. Fund raisers are able to arrange for quick pick up when you donate a car.

If you want to donate your car to a particular charity, you can call a fund raiser and ask if you can donate through them, or you can call the charity and ask which fund raiser they use. Most charities will be happy to refer you to their fund raiser.

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