Choosing to donate car to charity can be one of the most rewarding things you and your family do this year. Often charities will accept the donation of a vehicle in any condition, working or not. Before you hand over one of your biggest assets, there are a few tips to keep in mind.
To begin, do not use an organization that claims it will help you donate your vehicle. Contact the charities of your choice directly and find out if they accept vehicle donations. If you use one of these other organizations, they will probably keep anywhere from 50 - 90% of the value of the vehicle for themselves and then send the rest to the charity. By contacting and donating directly to a charity, you can be assured that they will receive the full benefit of your donation.
If the charitable organization that you would normally support is not equipped to handle vehicle donations, do your research and find on that is. You can then check with your local Better Business Bureau to ensure that the one you are choosing has a good track record for being honest.
One thing that is very important is to make sure that whatever charity you choose is IRS approved. If it is not then you will not be able to count your donation as a write off. Most of the time churches, temples, synagogues, and so on, are approved. If there is any doubt, you can pay a visit to the IRS website to look for the charity you want to donate to.
One way to maximize your donation is by dropping the vehicle off yourself. Otherwise the organization that you are making the contribution to will have to pay someone to come and pick up the vehicle. When you make your donation, make sure that you hand over the vehicle's title. This will help protect you against getting any violations after the vehicle is no longer in your possession. In the event that the organization asks you not to fill in the ownership section of the paperwork, tell them you cannot do that. To protect yourself it is imperative that you fill out all of the paperwork thoroughly and accurately.
If the vehicle you donate is worth more than $500, you will need to provide proof to the IRS of how much the charity sold the vehicle for. You should ask the charity to provide you with a receipt that shows how much money they made from the vehicle. Most often they will sell the vehicle that has been donated and use the money for their charity.
Although it may seem like a lot of unnecessary work, be sure there is an accurate paper trail of the entire transaction. This will not only help you maximize your deduction but will also offer you added protection.
When you choose to donate car or other vehicle to charity, by following a few simple tips, you can make sure that your well intended act really does help your chosen charity and your tax bill. This may very well be one of the biggest charitable donations that you and your family might ever make and so it is important to make sure that you do it correctly.
To begin, do not use an organization that claims it will help you donate your vehicle. Contact the charities of your choice directly and find out if they accept vehicle donations. If you use one of these other organizations, they will probably keep anywhere from 50 - 90% of the value of the vehicle for themselves and then send the rest to the charity. By contacting and donating directly to a charity, you can be assured that they will receive the full benefit of your donation.
If the charitable organization that you would normally support is not equipped to handle vehicle donations, do your research and find on that is. You can then check with your local Better Business Bureau to ensure that the one you are choosing has a good track record for being honest.
One thing that is very important is to make sure that whatever charity you choose is IRS approved. If it is not then you will not be able to count your donation as a write off. Most of the time churches, temples, synagogues, and so on, are approved. If there is any doubt, you can pay a visit to the IRS website to look for the charity you want to donate to.
One way to maximize your donation is by dropping the vehicle off yourself. Otherwise the organization that you are making the contribution to will have to pay someone to come and pick up the vehicle. When you make your donation, make sure that you hand over the vehicle's title. This will help protect you against getting any violations after the vehicle is no longer in your possession. In the event that the organization asks you not to fill in the ownership section of the paperwork, tell them you cannot do that. To protect yourself it is imperative that you fill out all of the paperwork thoroughly and accurately.
If the vehicle you donate is worth more than $500, you will need to provide proof to the IRS of how much the charity sold the vehicle for. You should ask the charity to provide you with a receipt that shows how much money they made from the vehicle. Most often they will sell the vehicle that has been donated and use the money for their charity.
Although it may seem like a lot of unnecessary work, be sure there is an accurate paper trail of the entire transaction. This will not only help you maximize your deduction but will also offer you added protection.
When you choose to donate car or other vehicle to charity, by following a few simple tips, you can make sure that your well intended act really does help your chosen charity and your tax bill. This may very well be one of the biggest charitable donations that you and your family might ever make and so it is important to make sure that you do it correctly.
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