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Donating a used car is a simple and least cost-effective way to donate to a charity. In this article, you will discover 5 simple steps to donate a car to charity and easily get your tax deduction.
Do you have a car you want to get rid of? You might have a car lying in your garage taking up space that you can’t wait to do away with. Have your attempts to get it sold come to no avail? There’s a way out, you can donate your car to charity in no time without stress.
Vehicle donation to Charities has become the best way Americans get rid of their unwanted vehicles. You’ll be helping a charitable cause while lowering your tax burden.
Here are 5 steps to donate a car you might find helpful.
Research and Pick A Reputable Car Donation Charity
Find a charity organization that is eligible to receive tax-deductible contributions. That is, the charity must be a 501(c) nonprofit organization in the federal law of the United States operates according to Section 501(c).
If necessary, you can track the of the organization by consulting an independent review institution that evaluates charities and rates them for efficiency in supporting their cause, Charity Navigator for instance.
Track the Charity Rating
After deciding on an efficient organization you can donate your car to, you can proceed to contact them and get a briefing on how to donate the vehicle to their charity.
You really don’t have to visit the organization in person. You can give them a call or fill out an online form to donate your car. If it’s a phone call, all you have to do is answer a few questions and the donation process will be over in a few minutes. You can then proceed to remove plate licenses and all personal belongings from the car.
Remove Personal Belongings
By now you must have removed all personal belongings and cleared your plate license. You will be shocked to learn how many people donate their vehicle with tier personal belongings, and realize it when it’s too late. Before you proceed to call the charity to arrange the pick up or the delivery, make sure you have inspected the vehicle and removed all your personal stuffs.
If your car roadworthy, you can drive it yourself to the place where you will give it as a donation. This is done to avoid incurring towing costs. For organizations that offer pick up services, you can schedule a pick up and wait for the car to be taken.
- Use Fair Market Value (FMV) If Necessary
The fair market must be used when the charity organization keeps and uses the car instead of selling it. It must also be used when the organization makes improvements or repairs on the car before selling it. When your car is sold at a discount price to an individual with a low income, FMV must be used. It must also be used if the car is worth more than $500.
- Keep Receipts and Take Pictures of the Donated Vehicle
Be sure to get a receipt for the donated car from the charity organization. Also have a document certifying how much the vehicle was sold for. The charity must be able to provide the document within 30 days of selling date. It is also important to take pictures, and possibly videos, of your car for work and repairs done on it. This is a very important if you are claiming a tax deduction on it.
Now you know how to donate a car to charity very easily, you can get rid the vehicle that you no longer want and enjoy the tax deduction that comes with it.
It feels good to know that your generous donations will go a long way in putting smiles on the faces of the people who actually need it. lease If you know other tips to donate a car to charity, kindly comment and share them with our readers.