Many people donate to charities throughout their lifetime.
These acts of kindness may come in many forms. People donate money to
organizations, materials items, and give their time to volunteer and hold
fundraisers. One way to donate that is catching on, is donating cars through
car donation services. It is a very hassle free way to give to those in need.
You will also be giving a donation that lasts.
If you have a car that you think would give you a good tax
write off you may be wondering where to donate your car. You can deduct up to
$500 according to the newest tax law. Check with your tax accountant or CPA to
see if this has changed if you decide to go ahead. First, you want to make sure
you have a car that can be donated.
There are a few ways to determine that. In general, your vehicle must be drivable. If not drivable and just needs minor repairs it may still qualify depending on the car donation charity. The condition of the car makes a lot of difference.
Vehicles that can be donated include, cars, trucks, RVs, boats, motorcycles, ATV's, airplanes, etc. Just about any vehicle can qualify for donation. Charities will need to be able to put your car on their own car sales lot or the car sale lot of a car donation charity broker that they hire.
Once you determine that your car, truck or other vehicle is in good enough condition to be donated, you will want to think about where you can donate it that will be best for you.
Many charities choose to keep some vehicles to help transport patients, clients or goods. They may decide to give a vehicle to a disabled or needy client. If any of this matters to you check this out with the charity as to how they will use the car.
Car donation programs include: Target Car Donation Program, Goodwill Industries Car Donation program, Kidney Foundation, Make A Wish Foundation and many, many others. You'll find a lot of smaller charities too. If you're not familiar with the charity check with the Better Business Bureau to make sure the charity is credible.
If you have favorite charities call them to see if they accept donations. This would be the way to start. Check online to see where to donate your car and what car donation companies are advertising and check out their websites or call them up to find out how to donate your car including all the qualifications for the car and what you need to know. All of these companies will supply you with the proper forms for donation. You will need to get the income tax forms yourself. You should check with your CPA or accountant to make sure you will benefit by the donation.
There are a few ways to determine that. In general, your vehicle must be drivable. If not drivable and just needs minor repairs it may still qualify depending on the car donation charity. The condition of the car makes a lot of difference.
Vehicles that can be donated include, cars, trucks, RVs, boats, motorcycles, ATV's, airplanes, etc. Just about any vehicle can qualify for donation. Charities will need to be able to put your car on their own car sales lot or the car sale lot of a car donation charity broker that they hire.
Once you determine that your car, truck or other vehicle is in good enough condition to be donated, you will want to think about where you can donate it that will be best for you.
Many charities choose to keep some vehicles to help transport patients, clients or goods. They may decide to give a vehicle to a disabled or needy client. If any of this matters to you check this out with the charity as to how they will use the car.
Car donation programs include: Target Car Donation Program, Goodwill Industries Car Donation program, Kidney Foundation, Make A Wish Foundation and many, many others. You'll find a lot of smaller charities too. If you're not familiar with the charity check with the Better Business Bureau to make sure the charity is credible.
If you have favorite charities call them to see if they accept donations. This would be the way to start. Check online to see where to donate your car and what car donation companies are advertising and check out their websites or call them up to find out how to donate your car including all the qualifications for the car and what you need to know. All of these companies will supply you with the proper forms for donation. You will need to get the income tax forms yourself. You should check with your CPA or accountant to make sure you will benefit by the donation.
If you run an Internet search on automobile donation programs,
you will get hundreds of hits from fundraisers who claim that they will let you
select from among a group of charities to which the proceeds of your car's
sale, of not the car itself, will go. And they will provide you with the
paperwork you should claim your car donation as a charitable deduction on your
IRS return.
Taking Advice From The IRS
But the IRS itself, in recent years, has turn out to be alarmed in the proliferation of automobile donation programs run by fundraisers which wind up keeping the bulk of the proceeds they obtain for donated vehicles. The IRS recommends that it you are considering any of the car donation programs, you get in touch with the people running it and get a clear answer as to whether or not they are charity officials, or private group acting for the charity.
In the event you discover that they're a private group operating the automobile donation programs of several charities, discover out precisely what they strategy to do using the automobile you donate. Will the car be repaired and given towards the charity to help in its work?
Car donation programs which can't, or will not, provide you with clear answers to these questions aren't those on which you are able to depend to see that your ca, or the money it brings gets, to the charity of your selecting. And if the charity doesn't directly obtain the car or its value, you do not have the proper to claim the value of the car as a deduction.
Legitimate car donation programs significantly simplify the process of connecting you with a charity which will benefit from your gift. But it's your responsibility to analysis the various automobile donation programs in you region and ensure that as a lot a possible of your car's value will probably be channeled to the charity, and that the charity itself is one recognized by the IRS. Otherwise, your well-intended car donation might turn into a big issue at tax time, when you try to take an unwarranted deduction!
Taking Advice From The IRS
But the IRS itself, in recent years, has turn out to be alarmed in the proliferation of automobile donation programs run by fundraisers which wind up keeping the bulk of the proceeds they obtain for donated vehicles. The IRS recommends that it you are considering any of the car donation programs, you get in touch with the people running it and get a clear answer as to whether or not they are charity officials, or private group acting for the charity.
In the event you discover that they're a private group operating the automobile donation programs of several charities, discover out precisely what they strategy to do using the automobile you donate. Will the car be repaired and given towards the charity to help in its work?
Car donation programs which can't, or will not, provide you with clear answers to these questions aren't those on which you are able to depend to see that your ca, or the money it brings gets, to the charity of your selecting. And if the charity doesn't directly obtain the car or its value, you do not have the proper to claim the value of the car as a deduction.
Legitimate car donation programs significantly simplify the process of connecting you with a charity which will benefit from your gift. But it's your responsibility to analysis the various automobile donation programs in you region and ensure that as a lot a possible of your car's value will probably be channeled to the charity, and that the charity itself is one recognized by the IRS. Otherwise, your well-intended car donation might turn into a big issue at tax time, when you try to take an unwarranted deduction!