The tv and radio advertisements make it sound so simple-donate a vehicle to charity and obtain a fantastic tax deduction. Originally touted as being a great way to give to charity, automobile donations became extremely popular as a tax reduction technique in the late 1990s. Automobile donations grew to become so popular among shady automobile dealers, in fact, that the IRS stepped in during 2004 with tougher rules about record keeping and valuation for tax purposes. That’s made it much tougher for your scam artists who prey on people’s generosity, but you will find nonetheless some unethical businesses who profit from car donations meant to provide an improved life for families and kids. If you are thinking about donating a car to charity, these tips will help you avoid scams and make sure that your car donation will really benefit those you intend to help.

The more acquainted you are with standard practices and rules, the much less likely you are to be taken in by a scam artist seeking to profit from your generosity to those in need. Before you decide to hand over your title, research the IRS requirements to ensure that you will know immediately if a “charity” is asking you to do something illegitimate.

Ask to determine the Papers. You can only deduct your vehicle donation in the event you make it to a 501(c)3 charity. Before you make any commitment, ask to see the organization’s 501(c)3 letter from the IRS, as well as the articles of incorporation through the state where the organization is operating.

Lastly, inquire to see the charity’s bylaws for accepting vehicles as donations.Do Some Research.Many charities that accept automobile donations do so through third-party organizations. Doing it that way lets the charity avoid the headache of collecting the car and handling the sale of the automobile itself. Begin your research using the organization by itself. Get an explanation of the car donation procedure, and inquire just how much of the sale price of the vehicle the charity will realize.

Don’t Hand Over the Title Unless the Transfer is Properly Signed

Some organizations will tell the donor they cannot sign the title transfer because they do not have the authority to complete so. It’s perfectly legal for a charity to hold an open title to a vehicle, but until the transfer is properly finished, signature and all, any fees associated with the car remain the responsibility of the proprietor.

Remove Your Plates

Remove license tags from the automobile before it is towed away. Make a copy of the title after the transfer papers are signed and make sure to do “cleanup” work such as cancelling any remaining time on extended warranties in your title, removing any personal papers from your automobile and deleting any links between the car and your garage door opener, cell phone and other personal links.Finally, read through the IRS pamphlet on automobile donations to make sure that you comply with all record-keeping and filing requirements concerning your vehicle donation. Publication 561 consists of the latest info on all regulations concerning tax deductions for a donated automobile.

If you want more information on car donation, don’t read just rehashed articles online to avoid getting ripped off.
Go here: Vehicle Donation Program