Sunday, February 2, 2014

Tips on How to Donate Your Car

Here is another tip I felt would benefit others. Since locally here in South Florida we are having donations of vehicles to help for our local charities. So I hope you find these tips helpful if you decide to donate your car to your local charity.

Donating your car to charities will not just definitely benefit organizations in funding their research or humanitarian efforts but also benefit you as a donor as you could be eligible for tax deductions for your charitable donation. Car donating has been popularly known as one of the very feasible ways of contributing to charity while at the same time avoiding the hassle of selling it.
donate your car
Donating a car to charities has been well known and practiced by some people today and individual who are trying to sell their cars but don’t want to experience the hassle of doing so also resort to donating their cars to charity. If you are one of those who are planning to donate your car, there are some things you must consider to maximize your donations. Note that there are potential pitfalls that you might experience when donating a car. Some of these are the large profits that middle men take out when hiring them while others are just scammers trying to extort money from you. Thus, to avoid having difficulties when donating a vehicle, here are some of the pointers you may follow:   

      Choose a reliable charity.


There are many charities that exist out there. When choosing a charity, pick one that accepts car donations. Make an inquiry if they are using vehicles or if they are going to sell it to fund a charitable projects and alike. There are charities that use cars for haulage or deliveries. If they are going to sell the vehicle, ask them of how much of the proceeds will be put on the charity’s fund. Also, make sure that the charity you choose to donate is qualified to receive tax deductible contributions. Organizations that mostly qualify for tax deductible contributions are churches, temples or mosque. Asking the organization of your choice about this valuable information is important to make sure that they are putting your charitable contribution into good use.

      

       If possible, avoid hiring car donation organizations and middlemen.


Middlemen and car donation organizations can help you with the paper works needed for transferring your donation. However, most of them take their own cut before the charity receives your donation. If you are thinking of using the service of middlemen, ask if how much of the proceeds the charity will receive. If the charity will likely receive a flat fee per month, your donation may not be qualified for tax deduction from IRS. 

      Make sure to transfer your car and the title to the charity correctly.





Transfer the car to the charity of your choice including the title. Make sure sign as well as date the release of the new ownership of the vehicle. Never leave the ownership title blank to avoid the responsibility of speeding fines, parking tickets that might be run up in your name if you fail to transfer the ownership title even if your car is already in the custody of the recipient of your donation.

      Make your donation successful by completing all the paperwork.



In order to be legible in receiving tax deduction contributions, complete the IRS form 8283. In cases that the charity of your choice received over $500 from your car donation, complete the said form together with the acknowledgement that the donation has taken place and received by the charity. You should also present the receipt of the vehicle’s amount if it is sold by the charity together with other documentation that it has been sold. 

2 comments :

Post a Comment