Auto Donation

Auto donation has become one of the favorite charitable actions taken by many car owners who are looking to get a new car. There are many benefits with auto donation including actual tax deductions available from IRS. This tax deduction will be equivalent to the amount that your car or automobile fetches in the charitable auction for the charity organization. More importantly, auto donation is a great way of contributing to a social cause, giving back to society in an impressive way. There are some auto donation tips that will make the process easier and simpler for you.

First Step In Auto Donation

The first thing for auto donation is to zero in on a charitable organization of your choice. Make sure that the charity organization has a widespread repute and can provide assurance that the donations will be put to good use. That is the reason you will have to avoid middlemen and also do the background research on the organization you would want to donate your car to. Reputed charity organizations allow you to proceed with auto donation online where you can register and even request for a pickup from your house, in case the car has problems. Good charitable organizations will provide you with an acknowledgement receipt almost immediately for the auto donation.

Another important thing to remember prior to auto donation is that you will have to look for the right charitable organization in order to qualify for the IRS deductions. The organization has to be IRS approved 501(c)(3) organization for you to be able to get a tax deduction. Another important thing for an auto donation is to receive the statement from the charitable organization within a month of the sale. This is important in order to claim for tax deduction for auto donation. The deduction on the basis of auto donation is not the price you estimate but the sale price your car fetches at the auction.

Wrapping Up Your Auto Donation

When you indulge in auto donation, you will have to go to every last detail. Charity organizations of international repute like Goodwill will keep car owners informed of all details including the auction and the sale proceeds. Although, the car is usually washed and fixed prior to auction, it would be great if your auto donation doesn’t cost the charity organization any money of its own. That would be a far more responsible act of charity. It is also important to keep a paper trail, in case you want to use the auto donation for IRS deduction at a later stage. The IRS Form 8283 would be required if your car fetches a value greater than $500 in the car auction. The documentation for the auto donation is very important for the deduction to be approved by IRS.

For more information about auto donation, please visit: www.charitydispatch.com
Auto Donation
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