When you have a favorite charity to support, vehicle donation provides a much needed contribution. Vehicle donation will also support a significant deduction in your taxes. It’s a good feeling to achieve both. You can donate pre-owned cars, trucks, vans, boats, recreational vehicles (RVs) and trailers to charity. And, vehicle donation is easy. Just take a few necessary steps to ensure the charity you wish to donate is reputable. For peace of mind and tax purposes a charity needs to devote at least seventy-five percent of your vehicle donation to their charitable programs. This also makes them legitimate. Sleuthing this out is easy.
First, choose your favorite charity. Make sure the charitable organization phone number and web site function properly. Use the IRS web site to check out charitable organizations they acknowledge. Hey, even better. Then phone your charity. Ask them about their charitable mission. What are your charitable programs? How do you allocate vehicle donation gifts? What percentage of my vehicle donation will go to your charitable programs? What percentage will go to administrative costs? Again, seventy-five percent of vehicle donations ought to support charitable programs at your favorite charity.
Next fill out paperwork for vehicle donation. You will sign over the vehicle title to your charity, writing in the charitable organization name as new owner. Remain in contact during the transfer week of your vehicle. That is between the date of vehicle pick up, the auction of your vehicle and to secure your auction receipt. That auction receipt is mandatory to conclude your vehicle donation transaction with your charity.
Since 2005, the IRS has determined that estimated fair market value (blue book) for vehicle donation is no longer valid to determine an itemized gift deduction. Only a valid auction receipt will prove a vehicle donation to the IRS. The auction receipt determines that your vehicle donation is in fact a charitable gift deduction. Unless, your charity decides to keep your vehicle donation for their own use. Then and only then, can fair market (blue book) value prevail. So, to have that good feeling of contributing AND claiming a healthy IRS tax deduction you need to stay on top of your vehicle donation until it’s complete. Donate your vehicle to a reputable charity and guarantee a worthy auction receipt.
Vehicle donation is also a great way to avoid the hassle of selling a used car. No more placing ads, fielding phone calls, scheduling test drives, meeting strangers in your home, or price haggling. As a charitable contribution your vehicle donation is easy and can make a big difference to a charitable mission. Check it out and see.