I’m sure, if you’re considering charity for the disposal of your old clunker, that you have several important qualms and questions that need to be allayed. So, we’ll quickly move to the tax deduction portion of car donation programs. The IRS issues exemptions for all charitable contributions to a recognized (and subsequently licensed) non-profit organization. How do you know whether the service you’ve selected falls into this category? Unless run by buffoons and baboons, a not-for-profit group will explicitly highlight their status, and the ability for contributors to receive tax credits. While donating is always a worthy and commendable deed, the fact remains that considerably less Americans would cut checks and bestow Bugs without the added incentive of tax write-offs.
If a charitable organization does not clearly underline whether you are able to receive tax deductions while participating in their car donation program, give them a call and ask. But, if the waters still seem murky after a telephone conversation, perhaps they are not so charitable afterwards. In that case, do yourself a favor and move on.
Another query often voiced is: Who foots the bill for towing expenses if the car is inoperable? The majority of times (in fact, while skimming through the car donation programs of various non-profit groups I could not locate a counterexample) the charity will pick up the check with regards to towing. There are, of course, some standard caveats. Firstly, the car must be worth more than the towing expenses and ancillary incidentals. Secondly, some charitable organizations will only accept cars, trucks, etc., while others will gladly and willingly take any sort of vehicle (RVs, boats, buses, motorbikes, etc.). Generally speaking, the charity will display the guidelines of their program in an accessible area.
In regards to the tax exemption of your automobile, the Kelley Blue Book ordinarily acts as the arbitrator of value. While the charitable organization would love nothing better than to dole out some of that charity when pricing your car, the IRS keeps strict tabs on such practices (charities are not allowed to appraise the value of donated merchandise). Seen as unbiased and authoritative, the Official Kelley Blue Book (find out more information by visiting their website at www.kbb.com) mediates any disputes over amounts of tax credit—meaning that if you indomitably suggest that your Mustang is worth “at least two thousand dollars more” than what it was appraised for, the charity turns to the blue book for the final word. After you’ve transferred the title of your vehicle (all charities will require that you have sole possession over said title—meaning that cars still under lease or loan or an ex-wife’s name cannot be donated), you will receive, not only the undying respect of volunteers and the jubilation of doing something good, but an IRS determination letter, which will secure your financial reward from donating.
To find a charity in need of your car, take some time searching the web. The bigger organizations will post web pages chockfull of pertinent information, including methods of contact. So, rip the tarp off that old jalopy and put that hunk of junk of good use: Help yourself by helping others.
By Jean-Pierre Lacrampe