Learn How to Donate Your Cars to Charity!
Donating cars can be a rich and rewarding experience. There are a lot of benefits to donating. You will get the good feeling of having given to charity. You will also get a tax deduction. Probably the most appealing part of it is to not have to go through the hassle of selling it. Nobody enjoys selling vehicles.
You have to clean them up, list them, and the contend with people who can be nitpicky. Sometimes A charity will use a donated car for hauling goods and directly gets great use of your kind donation.
In many cases the cars will be sold either by the charity, or by a dealer to bring money for the charity to use towards whatever their goal is. In the case of a dealer, the charity generally receives a flat fee per car, sometimes a rather small amount.To get the maximum allowable deduction on your taxes for a car donation, give it to a well respected charity that will use the vehicle for purposes in its operations or will give it to a person in need.
- Donating a car to charity will get you a bonus during tax time if you do it properly. Otherwise, your tax deduction might not be based on the fair market value, but will be limited to whatever amount of money the charity receives from selling your car. In short, uncle sam is screwing you just like he always does. The IRS also would really enjoy giving you an audit. Large non cash charitable donations tend to trigger them on occasion. What a surprise that would be! You might also keep in mind that you will need to get a receipt for your donation. just in case you do get an audit letter from the IRS. Be sure that the charity that you are donating your car to is eligible to receive cash deductible donations. They will have documentation from the government if they fall into this category. You will also need to get a receipt from the charity you donated it to after they sell it if it is valued at more than 500$. If in fact the car is worth more than $5000, there will need to be an independent appraisal of it. You can appraise vehicles using kelly blue book if they are valued less than $500.oo
There are different forms you will need to fill out for different sized donations of vehicles when tax time comes. Just make sure everything is well documented. If you purchased new parts for the car before your kind donation, make sure you save the paperwork. You should check out this form for information directly from the IRS. http://www.irs.gov/pub/irs-pdf/p4303.pdf
This video above will quickly show you the steps involved to make a charitable automobile donation.
A Few Car Donation Options That I Think are All Good Causes.
There are Many different types of charities when it comes to donating your car. It would seem just about any charity will accept it. You can donate to cancer research or even the salvation army. Depending on where you live there might be some good places in your area to donate your vehicle. They all vary slightly in the way they deal with the process and who ends up getting the car. Many places will also accept boats, rv’s, all terrain vehicles and more. See the sidebar of this page for articles about several other charities you might not have know accept car donations.
Can I Donate My Rusty Old Junk Car?
Yes as a matter of fact you can! Not only can you donate it but you are likely to get more for your car than you would if you tried to sell it.
Selling a car that is broken is a real pain in the butt. By the time you list it, negotiate with buyers, dealing with their extremely low offers etc. Its just easier to donate it to charity and tack the write off on your taxes. You will not only be making your neighbors happy by removing the eyesore from its parking spot, you will be donating it to a good cause.
What will a charity do with a broken car?
There are a number of ways a charity can make money off your broken car donation. After you donate a car they could have it towed to a salvage yard where they will buy your donated car for the parts that have value. Even if your car does not have an engine in it there are still many parts that hold value. They can can use every button, wire and piece of it.
The car I want to donate to charity has no valuable pieces!
Yes it does! even if there are no parts on your car that can be re-used do to severe rust and weathering your donated car still holds value. They can take your car to a junkyard and they will pay per pound for the scrap steel. Its better than having sit on the side of your house no?
In summary there are many charities that state directly they will accept your car whether it runs or not. You might be surprised the value it holds, and how nice the deduction on your taxes might be..