If you have multiple cars sitting in your garage and you are looking to get rid of one, car donation charities could be the best option for your tax relief purposes! Here are a few answers to common concerns about donating to vehicle donation charities and all that is involved.
What do auto donation charities accept?
Car and vehicle donation charities will accept cars, boats, trucks, luxury cars, SUV’s and other vehicles. To donate, you need to show that you actually own the vehicle. Car charities cannot accept your donation if you do not have the title to the vehicle.
How is the value of my car determined?
The next step is determining the fair market share value. Many donation charities cannot determine this amount for you (It is considered by the IRS as a conflict of interest). This means it falls on your shoulders to find out the monetary value of your car. There are many places to find out what your car value is online. I just discovered online that my car, a 1986 Chevy Nova, is valued below $1,000 dollars. I know, you are all jealous. If your car is valued at more than $5,000, you will need to go to a certified vehicle appraiser to determine the value.
What are the advantages to giving your car away?
One of the more visible benefits of giving your vehicle away to charity is the privilege of helping those who are less fortunate. Someone will be given another chance at life, whether they are a cancer victim or someone who needs food. Donating a car also has temporal benefits. Your donation is tax deductible. To get more information on the amount of your tax deduction, contact the donation charities you are interested in. Make sure the charities you choose are official, non-profit organizations to ensure your gift will be tax deductible. Also, vehicle donation charities will typically provide a towing service free of charge to pick up the car.
Are there disadvantages?
Disadvantages of donating your car to charity are that you lose your vehicle; if you are attached it could be hard to part. You might also not receive as big of a tax deductible as you wanted because your car was worth less than you originally thought.
How is the car picked up?
Each car donation charity has different arrangements. What typically happens is, after you have filled out the proper paperwork and the charity has reviewed it, the arranging will begin. Most car charities in the United States will pick up your donation at no cost to you. You will be given paperwork to claim your tax deduction for your car donation. A word of caution: check out the car donation charity you want to work with and ask lots of in-depth questions. Make a list of questions you want answered and either talk to them or visit their Web site to get your questions answered. This ensures you are not being scammed and it will feel good to know where your donation is going to help. Many car donation charities will help hundreds of charities who are in need of assistance, so your donation becomes even more important in your quest to help others.
By Emily Thomas