Posts Tagged ‘Tips’

More Tips For Charity Car Donations

Wednesday, June 23rd, 2010

It’s usually pretty simple and straightforward to donate a car to charity, but there are still a few things you can do to make sure that everything goes smoothly. These tips are often overlooked because they seem like small things, but if you want to get the most out of your vehicle, it’s important to pay attention to every detail.

Make sure of the final destination

A car donation can lead to a fairly significant tax deduction, but only if it goes to the right place. The charitable organization must have 501(c)(3) public charity status in order for your donation to count as a tax deduction. Donations to a 501(c)(4) organizations are usually not tax deductible.

Fully transfer the car

Never just leave the assignment of ownership blank. When you donate the car make sure that it is filled in. If the car ends up getting sold to another user who doesn’t re-license it, you can find yourself in a lot of trouble. Any tickets that they receive or crimes they commit with the vehicle will still be attached to your name. Car donations are meant to help everyone involved, not cause a lot of new legal difficulties.

Finish all the paperwork

In order to get the full car donation tax deduction, you will need to make sure all the paperwork is completed. This means that if the car is worth more than $500 you must also complete and attach the IRS Form 8283.

Value your car correctly

The regulations on donating a car for a tax donation have gotten pretty strict. Since 2005 you can no longer deduct the market value of a car that is worth more than $500. If this is the case for your donation, you will be able to determine your final deduction after the car is sold and you find out exactly how much it went for.

When to use Fair Market Value (FMV)

There are some times when you can still deduct the fair market value for your car donation. FMV is usable when the charity keeps and uses the car, or when they make improvements to the vehicle before selling it. It is also available when the car is sold at a discount to someone with a low income, or just when it is worth less than $500.

We always want to make the donation process as simple as possible, but if you keep these tips in mind it will be even easier to donate your car and help out the best charitable organizations.

10 Reasons To Donate A Car

Friday, May 7th, 2010

There has been a lot of talk about car donations to charity, and many people have discovered that this really is a great way to get rid of that old clunker while doing something good for the community or a favorite charitable organization. Everyone seems to have a different reason for donating a car, though. Here are 10 of the best reasons (in no particular order) to consider this as a final option for your vehicle.

  1. The Tax Deduction – A car donation can lead to fairly substantial tax benefits. Every year, hundreds of thousands of people save a lot of money on their taxes because of this deduction.
  2. Help a Family in Need – There are a lot of low income families that could use a working vehicle. It may not be the newest, sweetest thing on the road, but it will get them from place to place, which can be priceless.
  3. Contribute to a Favorite Charity – Charitable organizations need your help. If you have a favorite organization that supports something you believe in, this could be a great way to lend a hand.
  4. Provide the Charity with a Working Vehicle – Sometimes charities need more than money. Sometimes they can put your car straight to use within the organization.
  5. Stop Making Useless Insurance Payments – Why keep paying insurance on that clunker when you never use it? You can easily eliminate this burden.
  6. Stop Making Repairs on Clunkers – At what point have you put more money into your vehicle than it is worth? Donate the car and stop the money drain.
  7. Stop Feeling Unsafe in Your Own Car – Have you ever driven down the road and felt sure that the axel was about to drop out of the car? It’s time to get rid of it.
  8. Reduce Pollution – Those old cars weren’t the most environmentally friendly vehicles around. Donating it will get it off the road and reduce your carbon footprint.
  9. Recycling Potential – Is your car completely unusable? It can always be recycled and put to use in a different way.
  10. Feel Good About Something – Whatever other monetary benefits are involved with this process, you can walk away from your car knowing you’ve done something good.

There are many other good reasons to donate your car to charity, just take some time to consider your options and evaluate your vehicle. Is it doing you any good? Could it do some good for someone else? Car donations may be the simplest, most effective way to deal with those old vehicles.