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Cancer Society Car Donation Article
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Helpful Tips to Make That Car Donation Count
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So you have finally decided to rid yourself of that lumbering jallopy you have relied on for years that at first brought you to school during your senior year, your college years, your first date and your first few years at work. A well-maintained car is supposedly one of the safest places in the world, while a a poorly-maintained car is seemingly like a walking time bomb when the tires resemble Yul Bremer's head and the engine performs like an asthma-striken 13-year old during a track meet.
Alas, various charities across the US are giving you an opportunity to make that beat-up car useful again via car donation programs. Before you decide to say goodbye to your old ride, here are some tips worth considering to ensure before making that diffucult decision.
Important car donation tips
THE CHARITY RECEIVING THE CAR SHOULD BE DULY REGISTERED WITH THE INTERNAL SERVICES REVENUE
The nonprofit group you have chooses to donate your car should be eligble, qualified, and 5019(c) charity registered with the IRS. Donating to a non-qualified organization might not result in a tax benefit for the donor. The Internet home of the IRS features Publication 78, which is a list of charities with approved car donation programs. The correct names and locations of the charities can also be found there.
Well-known charities that have car donation programs include the Red Cross, Easter Seals, MADD, Big Sisters/Big Brothers, the United Way and the American Cancer Society.
CORRECTLY FORMULATE YOUR TAX DEDUCTION
Donors must first itemize personal tax returns before a car donation is claimed. Those interested in recieving a tax benefit should first itemized deductions that is different from standard deductions.
DETERMINE THE VALUE OF THE CAR THAT WILL BE DONATED TO CHARITY
Several online resources are available to help the donor determine the fair market value of the car being donated. However, the overall condition of the vehicle should be one of the most important considerations when making donations.
- Vehicles with low value will qualify the donor to the minimum tax benefit of $500. Such transactions do not require much paperwork and are finished immediately.
- Deductions will be limited to the actual sale price of the donation if a car's fair market value goes over $500. Proceeds from a sold vehicle will directly go to the Activiated Ministries.
- Cars in good running condition can be used by the charities for their own functions such as delivery of food or transport officials from one place to another.
BE WARY AGAINST HIDDEN COSTS
Charities with car donation program normally pick up the vehicle for free and should not charge hidden fees.
DETERMINE THE TITLE OF YOUR DONATION PROGRAM
A car about to be donated should have its title intact. The Motor Vehicle Department can provide duplicate copies of a title if the donor lost the document. However, vehicles that will likely be salvaged or sold for parts can be given away without the title.
DETERMINE IF THE CHARITY ACCEPTS ALL MODELS
Most car donation charities accept vehicles ranging from motorcycles, cars, motorhomes, RVs, personal watercraft and campers.
FILL UP THE REQUIRED IRS FORM TO CLAIM TAX DEDUCTIONS
The IRS for 8283 should be filled-up and submitted if the value of the car donation goes over $500.
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