Car Donation - How To Turn Your Old Worn-Out Car Into A Nice Car Donation Tax Deduction!
If you're thinking about a charity car donation I'm going to outline some of the facts you should know. You can receive a nice IRS tax deduction for your old car or used car and help someone in need in the process.
It's called car donation or charity car donation when you give a charity organization your vehicle - automobile, car, truck, ATV, RV, airplane or any other vehicle which might or might not be in useable condition. In the U.S. charitable vehicle donations provide a great tax benefit for the donor and it's rapidly gaining in popularity.
First you want to learn the mission of any charity you're considering. If you have a specific charity in mind for the car donation do some research on it, especially if you're not sure how reputable the charity is. There are many national and local charitable organizations that advertise in newspapers or on television and openly announce they are looking for car donations. You have probably seen some of these, but are they your best choice?
Sometimes charities will use the car donations themselves in their daily charitable activities - sometimes to transport people. Perhaps they may use it to transport people in need to doctor's appointments, social worker appointments, hospital tests, etc. More often though the vehicles will be sold at auction or off their car lots to raise money for the charity's programs or their general fund. Yes it is not common knowledge that many charities have their own car lots. Many Goodwill Industry stores have their own.
Many people do choose to donate their used and unwanted cars in order to help others. If you buy a new car or own a car that isn't running, you can consider donating the car, truck, or other vehicle. You can also donate boats, RVs, ATVs, airplanes and other vehicles or even real estate depending on what your charity accepts. Your donation is tax deductible which helps you and the organization that you donated the vehicle to.
Day in and out, charities provide services and needed support to people in communities all over the nation. While some may receive government grants or private donations, this is never enough to take care of the many causes they pursue. Charity car donations are a planned part of the non-profit organization's budget. These vehicle donations can make the difference in the kind of services they can offer. So if you donate vehicles you will help these organizations continue to function
In a nutshell, car donation means acquiring old cars from donors and donating them to charity organizations. There are car donation companies that are intermediaries or links between the donors and the people who benefited from these donations. They are a big help in funding for charities. Some companies even help organizations that do not have their own charity programs. The car donation companies can auction the donated car or other vehicle in the marketplace and the money is given to the charities or the car can be used by the charity organization or be sold on their used car lot.
When you give your car to charity you are given a charitable gift IRS Tax Receipt. The vehicle donations when made to a reputable and bona fide charitable organization are tax-deductible. The IRS allows the donor-taxpayer to claim a tax deduction on the estimated value of the vehicle up to $500. The donor of the car or vehicle must have title, so make sure you have it handy when you start the process.
Make sure to ask if the charity handles the car donations - have their own charity car donation program or pays an outside company to do it. If the for-profit company handles the car or vehicle donations, find out just how much money the charity receives from the sale and how much will go to the for-profit company.
You will see car donation program in just about every major city in every state in the U.S., including California, Massachusetts, Minnesota, New Jersey, New York and Michigan. There are no laws preventing charities from accepting these types of donations.
Some of the car donation charities you might see are: Target, Purple Heart, Kidney Foundation, Salvation Army, Goodwill Industries and various cancer organizations.
In any case you will greatly benefit for your charity car donation both in claiming a nice car donation tax deduction or benefit and in helping charities continue to operate so they can help people in need.