Many people nowadays donate a car to charity. This serves many purposes. Apart from the feel-good factor that the donation gives, you can also claim a tax rebate if your charity is in the list approved by the IRS. Donating a car also saves you from the hassle of selling it.
However, there are a few precautions that you should take before you donate your car. If you want to claim a tax rebate, then get your car valued by an independent assessor. Keep this report along with your tax papers to back your claim with the IRS. Also, ask the charity to save a copy of the sale receipt for you. This is especially important if your claim is for more than $500.
To protect yourself from parking tickets and insurance claims, make sure that you transfer the car out right to the charity. Do not leave any column blank to be filled in later. This could cause you no end of trouble.
Do your homework – select the charity yourself. Do not go through middlemen who claim to donate the proceedings to charity. They are for-profit organizations that pocket at least 50 per cent of the sale proceeds.
If you visit a place of worship, ask them if they will accept your car as a donation. Most places of worship qualify for a tax rebate for the donor. You can also ask your local charity if they want the car for their work. This reduces the paper work involved.
To maximize the benefit to the charity of your choice approach them directly. Another way of increasing the value of your donation is to drive your car to the charity yourself. Do not ask them to pick up the car, as this costs them money – they have to pay for the delivery.
Tags: Benefit, Car Charity, Charity Organizations, Choice Approach, Donating A Car, Feel Good Factor, Hassle, Homework, Insurance Claims, Irs, Many People, Middlemen, Parking Tickets, Place Of Worship, Places Of Worship, Proceedings, Proceeds, Profit Organizations, Receipt, Tax Rebate