You have most likely seen advertisements on tv soliciting car donations for charities. Giving your vehicle to charity offers many benefits for both the charity and its customers - and for you. The charity gets a precious asset, which they can either use, or sell to benefit their programs. You get a deduction in your tax return that could be equal to the present market value of the car, or even the amount that the charity gets when they sell the car. Depending on the car, that could actually be worth more than the amount a car vendor will provide you with on it as a trade-in, and it is almost certainly more than a scrap dealer will provide you with for the metal.If you do choose to donate your car to a charity, it’s essential for you to complete some research and to keep careful records to ensure that you and the charity get the full worth of your donation.

Here’s a checklist of things you should know and do before you donate your car.

Know the Charity

Many charities no longer take direct car donations because they don’t have the resources to take full benefit of them. Some larger charities accept direct donations and also have an entire department devoted to dealing with the paperwork along with other requirements. Many other charities accept car donations by means of third-party donation centers that serve as clearinghouses. Before you donate your vehicle, check to make sure that the charity is a 501 (c) 3 qualified charity. If it is not a 501 (c) 3 organization, you will not be able to deduct your donation from your taxes.

Transfer the Title of the Car To the Charity And Keep A Duplicate Of The Transfer Papers For Your Records

Some less-than-reputable companies will ask you to let them handle the details of the transfer of title. This could be simpler for the charity, which never really takes possession of the car. They do not actually transfer the title until the car is sold to another party, but this can result in problems for you when you file your taxes. Rather, ensure the title of the car is transferred to the charity to ensure that you’ll have a record of the donation.

Inquire the Charity How They will Benefit Out of your Donation

Charities use donated cars in several other ways, and you will find differences in the tax treatment among the ways. It’s important for you to know whether the charity will use the car itself, donate it to a needy family or sell the car at auction. It is also essential for you to know if the charity can make significant repairs to the car before selling it. Once more, you will find differences in tax treatment.

Take Photos Of The Car and Get an Appraisal of its Value If The Car is Worth More than $5,000

Before you make a donation, establish its value. If it is really worth greater than $5,000, you should get a professional appraisal to make sure you’ll be able to deduct the most value out of your taxes. If its value is less than $5,000, you can usually establish its value by checking Kelly Blue Book or current, local classified advertisements for similar vehicles in similar condition.As soon as you’ve certain yourself the charity is reputable and that you simply know the rough worth of your car, call a charity that takes car donations and find out about their procedure.

 

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