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Non profit organizations need your car donation

Updated on March 14, 2015
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Donate Car to Charity

There are many good charities, and many ways to donate to charities to help the people that need them. One way that is sometimes forgotten is to donate your car to charity. You can also donate a boat, or R.V. that you don’t need or don’t use. If you’re thinking of buying a new car, it may be beneficial for you to donate the vehicle instead of trading it in.

Why should you donate your car to charity?

Donating a car to charity has become popular. Over 750,000 people take a car donation tax deduction every year. There are many reasons you may want to donate your car to charity. You want to help, but you don’t have money to donate. You want to help the charity, and help yourself by getting a tax deduction. Or, you don’t care about a tax deduction, and just want to donate your car to charity. Donating a car that you don't want, or that you don’t use can be good for both, you and the charity

Donate directly

If you decide to donate a car to charity, there are things you should do, and things you have to do. Find a charity that takes car donations without a middleman. Some charities that take direct donations, Disabled American Veterans, and Make a wish foundation. Many churches also qualify and handle donations.

Many companies that advertise are middlemen in this business. They will pick up the car for you and will pay the charity either a percentage or a flat rate. The problem is they will keep 50% to 90% of the value of the car. The charity gets much less money this way. Try to deliver the car to the charity yourself, so they don’t have to pay to have it picked up.

Cars to Donate

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Follow IRS rules

Make sure the charity is an IRS registered nonprofit 501 (c) if you want to get a car donation tax deduction. Make sure you know and follow all the IRS rules for donation of a car and getting a tax deduction. You must itemize your deductions to be able to claim a car donation. If the vehicle value is below $500, all you need is a receipt from the charity that you made the donation.

If the value is over $500, it depends on how they use the donation of your car. If they sell it at an auction, they will give you a receipt showing what the car sold for. If the charity accepts the car, you can claim the Kelly blue book fair market value amount for your deduction. Talk to your tax person to make sure you know what you can claim.

Make sure you keep a good paper trail so you have all the proof that the deduction you are claiming is real. The IRS watches charitable deductions with a fine-tooth comb. Furthermore, make sure that you title the car to the charity so it doesn't come back to you in the future as still in your name.

If you donate a car to charity, it can be a good thing for you and for the charity. Just make sure that you know what you need to do, and you do what you need to get the deduction that you deserve on your taxes.

Cars to donate

Source

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