DONATING YOUR CAR TO CHARITY | HOW TO DONATE A CAR TO CHARITY
When you want to donating your car, the charity you have chosen is responsible for the tax vouchers needed. It also saves you the hassles of having the car appraised, looking for buyers, or paying for car repair charges that often come with older cars. To save you the trouble of constantly paying these costs, it is better to consider donating the car instead.
Although most charities receive cash donations, the number of car donors has been steadily increasing through the years. Most car donors opt to donate their old cars instead of selling them since the resale value of their cars are way lower than they expect.
Giving your car to charity may generate more value than selling it at a really low price and is far more practical than just not using it. Donating used cars may solve the problem of getting rid of old cars.
It is common to donate old car appraised for less than its expected market value. Donating your car to charity proves to be a better option since it generates more value, especially since it is tax deductible.
There also have been cases when stolen cars retrieved by the owners are donated simply because the cars no longer “feel the same.” First check with your local charities and see if they can accept car donations. For those charities that are not set up to handle donations they hire companies that are set up to resell your car, usually called car donation brokers through car donation programs.
Make sure to ask if the charity is IRS-approved 501 9(c) (3) or is a qualified religious organization such as a church, temple or mosque in order to accept the donation.
Once you know what charity you’re going to donate it to, you can save the charity some money by dropping off the car or vehicle yourself. Some charities charge a removal fee and you can avoid this. If the car or vehicle is worth more than $500, that you can claim a charity tax donation.
If your car is worth more than $500 then you’ll need to file IRS form 8283 with your tax return. So check the IRS form for exact details. You’ll also need your charity receipt and a copy of the change of ownership in the title.
This is basically how to donate cars to charity. To donate a car to charity is a nice and helping step for the needful. While you think of donate a car to charity always go step by step and giving a proper focus to below mentioned follow ups:
Step 1: Determine What to Donate
First, decide what type of car you want to donate to the charity, whether SUV, RV, small car, luxury car or else.
Step 2: Determine the Value of Vehicle
Since January 2005, a new tax law has been in effect, the IRS is responsible for deciding the value of the car that has to be donated. You will get the receipt at that time when the charitable trust picks the car from your place and later on will send you another receipt determining selling price of your donated car which will act as your deduction on the tax return.
Step 3: Complete Donation Form
You need to fill the form for donation. After your form has been reviewed then the process of donation will begin with a bang.
Step 4: Acquire the Title, Arrange for Pick up
The pick ups are performed by the shipping companies, therefore make the special instructions before the donation of the car. This way you can easily how to donate cars to charity.