Used car donation is one of the ways you can help children in need. Majority of Americans know that their used cars can make a difference, a big difference rather, to abandoned, orphaned, or otherwise distressed kids. Even then, a recap and a few hints on the donate Car program would be helpful. The well-meaning act should not land you in some trouble.
Though it is called car donation program, the charitable organizations accept any used vehicles, cars, trucks, RVs, boats and even snowmobiles and the vehicles need not be in running condition. The charity will sell the car or its parts, if it is in junked condition and use the money to provide hot meals, books, scholarships, healthcare, and clothing to needy children.
When you donate a car, ensure that the charity is a dependable and honest organization. Ask one important question, is it an intermediary or a charity that operates welfare programs on its own. There are ‘middleman’ type outfits that collect car donations, which share only a portion of the proceeds with true charities. Rest of the money goes for their ‘services!’ Check and ascertain that the charity you are donating a car to, has earned a good name over the years and truly cares for kids.
It is extremely essential that you transfer the title to the charity and have the car donation specifically recorded with the motor vehicles department. This is necessary to protect you, in case the buyer of your car attracts parking tickets or violates traffic rules. Here is where a responsible charity will step in and complete the paper trial for you. These organizations will tow away the car if it is not in running condition.
You are eligible for certain tax deduction when you donate car, provided the charity is qualified under IRS rule 501(3). The tax benefit may be up to $500. If the charity sells the vehicle for a better price, you have to calculate Fair Market Value while claiming tax rebate. IRS Publication 4303 (Rev. 03-2008) is the ideal source for guidelines on car donation, but as it happens with any tax provision, figuring out the exact amount will need some patience. A good charity will work with your tax accountant and help you with the tax formalities.
Donate a car – you would be helping to groom a responsible adult for tomorrow.