Donate Your Car to Charity

You should donate you car to charity if you do not need it anymore instead of selling it. If you donate your car to charity, you won’t have spend money on unnecessary things such as advertisement. You also get to help people who are in desperate need of funds. Your car can be used to fund a good cause and in return, you get a tax deduction. This is the best way to get rid of an old car without any hassles. Vehicle donation has become very popular amongst people due to these reasons. However before you donate your car to charity; there are certain things you’ll need to take care of:

Steps to Donate Your Car to Charity

Find a Recognized Charity: Only charities that are recognized by the Internal Revenue Services are qualified to receive tax deductible donations. If you wish to get a tax deduction when you donate your car to charity, you must find a charity that is recognized by the IRS. You can use charity navigator for this purpose. Alternatively, a list of all IRS recognized charities can be obtained from the official website of the IRS. Some public libraries also keep a complete catalogue of such charities.

Determine the Fair Market Value: The very first thing that you should do after you have selected the charity is determining its value. You will need to determine your car’s market value in advance as this is the maximum amount the can be deducted while filing your income tax returns. You can consult the Kelley’s Blue Book while estimating your car’s fair market value.

Legal Formalities To Donate Your Car to Charity:

 After you have estimated your car fair market value, you will need to go into the legal formalities. You will have to file a claim for tax deduction on vehicle donation. You will need a tax receipt from the charitable institute for this purpose. You need to have all necessary documents if you wish to get a tax reprieve.

Make sure you follow all necessary precautions when you donate your car to charity to get the most out of a used car for both yourself and the community. Donate your car to charity to make a difference for those are less fortunate than you. It is one of the most generous donations you can make as an individual.

For more information on how to donate your car to charity, please visit www.charitydispatch.com

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