Donating a vehicle for a worthy cause is a very noble idea. You may also be eligible to deduct the value of the car from you taxes, which is another reason to donate it. You should be certain to find out all you can about the charity or organization you want to use. Unfortunately, numerous businesses will take advantage of your generosity and the charities will not get what they deserve from the donation. The following includes some guidelines you can employ to help you discover how and where to donate your car.
Steps to Follow to Donate a Car, Truck, Van or Other Vehicle to a Charity
Understand your donation.
Donating a car to a charity can provide it with much needed money. It is ordinary for the organization to sell the donated car for cash. This money can then be used to feed the hungry, to do medical or other types of research, to help victims of a disaster, to protect women, children or animals from abuse and so many other significant things. If you spend the time locating a legitimate charity to donate your vehicle to, you can make a big difference.
Decide whom you want to donate your car to.
There are a large number of organizations accepting donated vehicles. One type involves the use of a “middleman”, which will accept the donated car on behalf of charities. The problem with this is the fact that these “for-profit” businesses normally do not supply the charity with the full amount received from the car. There could be a “fee” charged for this service that will end up being deducted from the money intended for the charity. The other type is to donate directly to the charity of your choice, if possible. To do this, you must be able to identify a reputable charity or organization.
Identify a legitimate charity to use.
You will come across an enormous number of charities or organizations claiming to be trustworthy. Sometimes it is very hard to distinguish the good ones from the bad. You can identify reputable charities by checking their status with the BBB (Better Business Bureau) first. You will be able to do this from their website. If you are concerned about a charity, use the BBB’s reports and resources to identify a legitimate one. Read over the information supplied about all of the various charities to distinguish one you like. Contact them directly to find out the procedure required to donate your car.
Understand the tax deduction regulations.
You may not be able to deduct the value of the car donation from your taxes. It is a common misunderstanding that you can automatically claim a donated vehicle on your tax return. This is often the case, but not always. You should use an IRS-approved organization to ensure this option. You can learn more about this from the IRS (Internal Revenue Service) website. As long as you follow the guidelines and instructions presented, you can claim your donated car. Just remember that before you make your final decision on where to donate your car, check their status with the IRS.
Select a charity or organization to donate your car to.
Think of several causes, organizations or charities that you are interested in helping and learn about them from the BBB. If you do not have any particular ones in mind, use the BBB to find one. Once you have selected one or more, check their status with the IRS, if you are concerned about a tax deduction. The final step involves the actual process of donating the car and the paperwork. You may or may not be able to donate your car to a specific charity because of your location or its. The cost of the delivery of the car may be more than the donation is worth. If this is the case, locate one nearby to use.
Resources & Helpful Links:
MSNBC: Tips for Donating a Car to a Charity