Charity Car Donation: Car donation to charities shows your generous gesture bringing memorable moments in your life and other as well. It is the best way to get rid of your old used car from your garage that’s simply holding the space unnecessary.
Philanthropy is the best way to eradicate poverty, and car donation is the best way to recycle your old car or vehicle. You will be rewarded for your philanthropy from the mouths of millions of helpless people.
When you donate your car to charities, you’re literally helping a bunch of people out there with basic amenities such as health, education, hunger, in fact, the basis of living. The charity will auction the car that you donate and spend the money raised from the auction on improving the standard of living of your fellow people.
Moreover, you’ll get Federal tax benefits from your donation. You can find more information on charitable car donation tax deduction here.
All you need is to find the best charity and they will take care of the rest. I’m assuming you got a brand new car, and you want to donate your old car or vehicle to charity, what all thongs you should know before making a donation:
All You Need to Know About Car Donation to Charity
What kind of vehicles can I donate?
There’s no restriction on the type of vehicle. You can donate all type of vehicle ranging from cars, trucks, boats, motorcycles, vans, RVs, ATVs, and more…
Should the vehicle be in good condition?
Car donation charity accepts any type of vehicle irrespective of their condition. Even if it is not in good running condition, you can still donate it.
They even take care of towing charges for your car.
What paperwork is needed for donation?
In depends on the state you belong. But, in most cases, you’ll need a signed title and insurance.
You can even donate your car if you lost your title. You can get replacement title from the state, which the charity will take care off.
After your car is picked up, you’re no longer liable to the vehicle for which you don’t need any paperwork.
Is my vehicle donation tax deductible?
Yes, of course. It depends on the sale value of your donated vehicle for which it is sold to. If your vehicle is sold for less than $500, you can claim a fair market value based on the amount it is sold. And, if it is sold for above $500, you can claim for the exact amount for which the vehicle is sold.
You should include the tax deductible form mailed to you by your charity with your federal tax return to get benefits.
How charities get benefit from your donation?
When you donate your vehicle, it will be sold at auction and the proceeds will be given to the nonprofit organization of your choice.
More than 70% of the net proceeds will be given to the charity you choose. It depends on the car charity to which you donate your car.
I owe money on my vehicle. Can I still donate?
Unfortunately, you cannot donate the car because the lender secures the title until you pay off the debt.
Do I get trouble by donating the vehicle?
Probably no. Make sure to get a “Notice of Transfer and Release of Liability” form filled as soon as your vehicle is picked up on the DMW website.
It is wise to ask the charity which you choose whether they accept car donation directly. This will cut dealer, towing charges which will benefit the charity to keep the entire money of any proceeds from selling the car.
Ensure is the charity is eligible tax-deductible contributions by IRS. Ask for a copy of IRS letter, if needed.
Don’t forget to get a receipt from charity or the dealer and make a record of it. Because non-cash donations will create some hassles in IRS audit.
Many charities offer free vacation certificate as a gesture for making a donation. The rest of the amount will be sent to the non-profit organization you choose.
Most importantly, you should be aware of the car donations for charity before making your donation because there are many scam charity agencies working out there.
You’re donating your vehicle for the betterment of homeless and helpless people out there. You and your charity are benefited mutually. Instead of keeping your car in your garage getting rusted, you can donate your car to charities. Let’s build a beautiful world for the future generations.
Last but not the least, ever quote inaccurate figure while filling tax return, because it is you who will have to pay penalties if IRS challenges the numbers inaccurate.