How to Find Out Which Charities Accept Auto Donations
Understand that donating cars to charities has changed drastically for the Internal Revenue Service (IRS), charities and individuals in the last 15 years., Call the charities in your community to which you have donated before., Ensure your...
Step-by-Step Guide
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Step 1: Understand that donating cars to charities has changed drastically for the Internal Revenue Service (IRS)
Consider the following before donating:
You no longer estimate the value of the car on your taxes.
If you are seeking a tax deduction for your generosity, then donations worth more than $500 must include a sales receipt from the 501c(3) charity of your choice.
Vehicles worth less than $500 can quote the Kelley Blue Book price, and they do not require you to include a sales receipt from the charity.
You are not required to fill out an IRS Form 8283 on your taxes either, so check the Kelley Blue Book price now.
Understand the hidden fees.
Car donations can require delivery fees, if you do not drop it off yourself.
You will also need to pay for title change fees.
Understand the hidden risks.
Donating your car will require you to change the title over to the charity.
You are liable for parking tickets and other delinquent activity associated with the car, if you still own it in the eyes of the law.
Any charity that asks you to keep the title is unlikely to be a good donation choice. -
Step 2: charities and individuals in the last 15 years.
They may or may not accept vehicle donations, but choosing a local charity will cut down on fees and direct your aid to your favorite organization. , Ask for their tax ID number.
You can only deduct a donation from this type of charity.
If you don't know whether your charity is a 501c(3) designation, search the IRS charitable organization database at http://www.irs.gov/Charities-&-Non-Profits/Organizations-Eligible-to-Receive-Tax-Deductible-Charitable-Contributions. , Some businesses make money by selling cars for charity.
Your charity is likely to receive less than 50 percent of the profit in this case. , Many communities have yearly auctions for large items, like cars and boats.
During these auctions, 50 percent of the profits may go to the organization that puts on the auction.
You are likely to receive a portion of the proceeds, which you can then gift to charity.
You can get rid of drop-off fees and help two organizations through this method. , Choosing a state charity may mean that you can drop the car off yourself and avoid drop off fees. , Knowing their intentions should help you to evaluate how far your donation will go. , Charity Navigator rates these charities, so that you can get a good idea of how much of the value will be used for administration costs. , Get a contact at the charity that will provide the following:
Official information for the title transfer.
You will need to transfer your title immediately upon donating the car.
A charity auction receipt.
If your car is worth more than $500, you will need paper proof of the money the car made at auction.
If your car is worth less than $500, you will need an acceptance receipt from the charity.
Further documentation, if the charity has decided to use the car for other purposes.
You can deduct fair market value (FMV) if the charity has decided to use the vehicle for their transportation needs or if they have sold the car to a person in need.
Consult your tax preparer about how to calculate and prove the FMV. , Although there may be delivery fees, you may want to target your donation. , You can also find a list of these charities at donatecarusa.com/charities/nationwide. , Keep in contact until you receive the necessary receipts required for taxes. , You should have proof of the title change, proof of the receipt of the car and the car sales receipt, if applicable.
These will become necessary in an audit. , Submit this with your yearly tax return. -
Step 3: Call the charities in your community to which you have donated before.
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Step 4: Ensure your organization is a 501c(3) charity
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Step 5: according to the IRS.
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Step 6: Ask your local agency if they accept the donation directly or use an agency.
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Step 7: Talk with the community about a community auction.
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Step 8: Go to donatecarusa.com/charities and look through the list of charities that accept cars by state.
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Step 9: Ask the charity how they will use the car.
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Step 10: Go to Charity Navigator
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Step 11: at charitynavigator.org
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Step 12: to research the charities you have found.
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Step 13: Make sure the charity will provide you with the necessary paperwork you need.
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Step 14: Go to Charity Navigator to research charities that support causes you want to help.
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Step 15: Call these charities to confirm they accept auto donations and see how they will sell/use the car.
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Step 16: Transfer the title and arrange for delivery of the car.
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Step 17: Keep an extensive paper trail throughout the donation process.
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Step 18: Fill out an IRS Form 8283
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Step 19: if the car sold for/was worth more than $500.
Detailed Guide
Consider the following before donating:
You no longer estimate the value of the car on your taxes.
If you are seeking a tax deduction for your generosity, then donations worth more than $500 must include a sales receipt from the 501c(3) charity of your choice.
Vehicles worth less than $500 can quote the Kelley Blue Book price, and they do not require you to include a sales receipt from the charity.
You are not required to fill out an IRS Form 8283 on your taxes either, so check the Kelley Blue Book price now.
Understand the hidden fees.
Car donations can require delivery fees, if you do not drop it off yourself.
You will also need to pay for title change fees.
Understand the hidden risks.
Donating your car will require you to change the title over to the charity.
You are liable for parking tickets and other delinquent activity associated with the car, if you still own it in the eyes of the law.
Any charity that asks you to keep the title is unlikely to be a good donation choice.
They may or may not accept vehicle donations, but choosing a local charity will cut down on fees and direct your aid to your favorite organization. , Ask for their tax ID number.
You can only deduct a donation from this type of charity.
If you don't know whether your charity is a 501c(3) designation, search the IRS charitable organization database at http://www.irs.gov/Charities-&-Non-Profits/Organizations-Eligible-to-Receive-Tax-Deductible-Charitable-Contributions. , Some businesses make money by selling cars for charity.
Your charity is likely to receive less than 50 percent of the profit in this case. , Many communities have yearly auctions for large items, like cars and boats.
During these auctions, 50 percent of the profits may go to the organization that puts on the auction.
You are likely to receive a portion of the proceeds, which you can then gift to charity.
You can get rid of drop-off fees and help two organizations through this method. , Choosing a state charity may mean that you can drop the car off yourself and avoid drop off fees. , Knowing their intentions should help you to evaluate how far your donation will go. , Charity Navigator rates these charities, so that you can get a good idea of how much of the value will be used for administration costs. , Get a contact at the charity that will provide the following:
Official information for the title transfer.
You will need to transfer your title immediately upon donating the car.
A charity auction receipt.
If your car is worth more than $500, you will need paper proof of the money the car made at auction.
If your car is worth less than $500, you will need an acceptance receipt from the charity.
Further documentation, if the charity has decided to use the car for other purposes.
You can deduct fair market value (FMV) if the charity has decided to use the vehicle for their transportation needs or if they have sold the car to a person in need.
Consult your tax preparer about how to calculate and prove the FMV. , Although there may be delivery fees, you may want to target your donation. , You can also find a list of these charities at donatecarusa.com/charities/nationwide. , Keep in contact until you receive the necessary receipts required for taxes. , You should have proof of the title change, proof of the receipt of the car and the car sales receipt, if applicable.
These will become necessary in an audit. , Submit this with your yearly tax return.
About the Author
Robert Kelly
A passionate writer with expertise in hobbies topics. Loves sharing practical knowledge.
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