When you are looking to donate your vehicle through a car donation service
, you can rest easy knowing that you are making a great decision. There are some things you will want to check out before moving forward. It is always best to know you are going through a reputable charity or donation service.
Make sure to check with the car donation service of your choice to see how much of your vehicle's value will go to charity. Some of them give flat fees regardless of your vehicle's value. Some will donate the value of your vehicle in monthly installments. There are times when you may not qualify for a tax deduction. This should not stop you, since donating and giving back to the world is such a wonderful and priceless act.
Many great car donation services out there make the donation process as simple as possible. Donating a car is out of the traditional methods of donations, so people often feel very special for donating a vehicle. If you are concerned about a tax deduction, you will have to make sure that the charity donated to is an IRS approves 501 (C) (3) organization. You can ask any car donation service if their chosen charities qualify. The other option is to go to the website of the IRS. You would need to search for publication 78. This will give you a list of qualified organizations.
Things to make sure of:
1. The charity is allowed to receive contributions that are tax deductible
2. Make sure you have a copy of a charity's IRS letter of determination. This verifies tax-exempt status.
3. Make sure you have a receipt after your donation has been made.
4. Be aware that it is non-cash donations that trigger audits through the IRS. Make sure to have adequate documentation.
5. If your car is worth more than that must be filled out.
6. If your vehicle is worth $5,000 or more you must obtain a professional appraisal of the vehicle. Do not try to pass your car off for more than it is worth.
7. Take pictures of your vehicle and note any upgrades in order to verify the value that you have given your car.
8. It is up to you as the donor to value your car. It is not up to the charity or charity donation service. You will also be the one to incur penalties if you are challenged by the IRS about your value decision.
Knowing how car donation works and how to be prepared, will help you gain the most benefit and the most rewarding feeling about your very generous donations. Many people get caught off guard by the IRS when they try to donate on there own. Going through a reputable online car donation service will ensure that your transaction is accurate when it comes to meeting IRS guidelines.