If you own a car and it is just sitting in your garage or driveway collecting dust, you should think about donating the car for a good cause. Car donation is something very new to a lot of people and many are unaware that it is even possible. Most people simply sell of their unused car at a dirt cheap price or take it to the junkyard for disposal. Why sell your car for pittance or scrap it for metal when you can donate the car to help people who are really in need of one?
You may now know this, but there are a lot of good things associated with donating a car. Even if your car is not in perfect working condition and has some defects you can still donate it because it might be of no value to you but to someone out there, it is priceless. With just some minor repairs you vehicle could be running again in no time. Besides that, if you decide to donate, all you have to do is make a phone call to you nearest donation center and they will come to pick up the donation. If your vehicle is not in working order, they will take care of the towing charges. Hence, there is no hassle involve, just a phone call away.
Donation centers are very helpful and they will bring all the paperwork for you to sign which is very minimal in any case. Before you know it, you will have extra space in your garage or your driveway where your unused vehicle used to be. The free space can be then be used for better things that are productive and fulfilling instead.
Donating a can also help with your taxes as it can be used as a large IRS tax deduction. This is one of the best reasons to donate and most people are not aware of this. Hence, besides having some extra space and doing a good deed, your tax statement will also look better with the tax deduction.
Your donation may go to a family that dreams of having a car to take them around or the organization may use your donation for charitable causes like delivering food, clothes or furniture. All in all, you will have the peace of mind knowing that your donated vehicle goes a long way and will be put to good use instead of just sitting idly collecting dust.
In order to find a charity organization that accepts car donations, you can do a search online or in the yellow pages to locate one nearest to your home. Most charitable organizations would be more than happy to accept your donation. If you have problems finding an organization near your area, look for ones outside of town and chances are they will be rushing to collect your donation from you.
As a conclusion, if you own a car and are no longer using it, do consider donation. The benefits are endless and you will gain peace of mind and it is guaranteed to a put a smile on your face every time you think of your vehicle being used for charitable cause.
Cars that are donated to charity are mostly sold in volumes by the charity in order to raise funds for that particular charity organization.
Other charity organization uses the donated cars for their own personal use such as hauling goods or for their own means of transportation. In case the vehicles are sold by a dealer on behalf of the charity then the charity ends up getting a flat fee for every car.
The amount is usually very little. Before a donor decides that he/she wants to donate a car to charity, there are certain factors that should be followed; a donor should ask for documents from IRS to determine and verify the tax exempt status, this is followed by a confirmation of weather the charity of your choice is eligible to process tax eligible contributions.
It is very important that the donor insists on a receipt from the charity that the donation is being made to.
Audits by the IRS department are mostly triggered by the non-cash donations so a donor with most probably insist on documents to value the car being donated and at the same time keep sound records of it.
When an individual wants to donate a car to charity, the donor is required to fill up a written acknowledgement with the charity and file with their tax returns for proper records and to avoid any hitches during their tax processing process.
All this apply only if the car being donated exceeds a resale value of more than $500. The charity must provide the donor with a certificate after selling the donated car in order to allow the donors tax deduction process.
If the charity decides to keep the car for its own use, then the donor must be provided with a receipt within 30 days from when the car was donated.
This might mean that the donor might also be provided with a documented statement sating on how the charity organization plans to use the car. Authorities are eligible to deal with charities that provide falls acknowledgment to the donor.
To avoid being defrauded by fraudsters, before you donate a car to charity it is important to take a picture of the car and keep all the documents and receipt in a safe place in order to verify its value in future incase some issues arise.
It is the donor who is authorized to value the car and not the charity and it is still the donor who is supposed to pay any penalty in case the figures are found to be in accurate.
Where To Donate Your Car
The main reason why most people donate their cars is because of tax deduction purposes. What basically happens when you decide to donate your cars is because tax shelter is provided for them and donations are given to the donors’ charity of choice to support its cause.
Other examples of charity organizations that donations can be made to are the Red Cross organizations, diabetes association, orphanages etc.
Apart from the tax deduction benefits that a donor gets, it is also a good gesture towards giving back to the community.
In order to donate your cars to charity, a donor can go through numerous companies that have purposely been formed to deal with donate your cars initiative and they are found online.
It is not a complicated process when the donor company comes to pick up the car because what one should simply ask for is a temporary receipt from the company and the receipt should display the donor’s details as well as the cars.
The company that the donor decides to involve him/her self with, takes care of the whole process from the beginning to the end of the donation and the tax deductions and also process the much needed paperwork in order to get as much deductions as possible.
There are also those charity organizations that accept car donations without involving middlemen for a profitable process.
It is important to avoid these middlemen because they usually take about 50% of the total profit collected.
Since your car has given you its best services for a better part of its life, why not do something really special now that you want to take it away.
It is very noble to donate it into a noble cause like the world lungs association so that it can assist in lung medication.
It is not only in the united states of America that the donate your car initiative for tax deductions operates, other countries such as Canada and also some in Europe have such projects which really help people manage their lives despite the current world financial crisis.
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