When you choose to donate car for charity, there are some things you should be aware of. Most charities will accept any vehicles, whether they are running or not. To make sure that you are donating to a worthy charity, there are a few things to consider before handing one of your biggest assets over to anyone.

To begin, do not use an organization that claims it will help you donate your vehicle. Contact the charities of your choice directly and find out if they accept vehicle donations. If you use one of these other organizations, they will probably keep anywhere from 50 – 90% of the value of the vehicle for themselves and then send the rest to the charity. By contacting and donating directly to a charity, you can be assured that they will receive the full benefit of your donation.

Not all charities are equipped to handle vehicle donations. If you find out that your choice of charity cannot handle a vehicle donation, do some research and find one that does. After you find a charity, if you have any concerns or any questions to their validity, you can contact the Better Business Bureau to ensure that they are a valid organization.

One mistake to avoid is to choose an agency that has not been approved by the IRS. If the chosen charity is not IRS approved, then your donation will not qualify for a tax write-off. If you are making your donation to a group such as your local church or temple, they are likely to be IRS approved. To find out if your favorite charity is IRS approved you can visit the IRS website.

To help the agency maximize the donation, drop the vehicle off to them yourself. If you do not, the agency will have to pay someone else to pick up the car which will, in turn, cut into the amount of the donation. You will also want to make sure and sign over the vehicle completely, including the title. There are some charitable organizations that might ask you not to put any information into the section labeled ownership on the paperwork. You will want to say no. This is to protect you as well as the organization. If you do not completely sign the vehicle over to the organization you may find yourself with a parking ticket or other violation that was not your fault.

If the vehicle you donate is worth more than $500, you will need to provide proof to the IRS of how much the charity sold the vehicle for. You should ask the charity to provide you with a receipt that shows how much money they made from the vehicle. Most often they will sell the vehicle that has been donated and use the money for their charity.

It may feel like a lot of paperwork that is not needed, but by making sure that you have an accurate paper trail can save you a lot of headaches down the road. Having a thorough and solid paper trail will also ensure that you are able to get the maximum deduction when you file your taxes.

When you donate car to charity, it might be one of the most rewarding experiences you have ever felt. It is important that you follow some basic hints so that you and the organization that you choose can both benefit.

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