Donate Car Charity and Your Taxes

2007-05-15 06:10:46

( Charity )



Charitable institutions are looking for some other ways you can help them. You can now donate your car to an organization of your choice and alleviate your taxes in the process. Sounds like a win-win scenario for both the organization and you as the donor. But before you say goodbye to your car and your sentiments with it, you need to understand how the process works.

BEFORE YOU START

There are several donate car charity guidelines for donors. If you are planning to donate a car to charity, be sure you are donating it to a qualified organization to make sure your donation will be deducted from your taxes. Check your car. Only its market value will be deducted from your taxes. You’ll get a lower value if your car has not been properly taken care of. Don’t expect it to have a good market value if your car has a missing hood or busted head lights. Usually though, this vehicles are being fixed right before they hit public auctions so as to increase its market value.

A WARNING TO DONORS AND ORGANIZATIONS

Donate car charity program is an ingenious way to donate and get to help yourself in return. However, there is a risk involved to this donate car charity programs that will put you as well as the organization into trouble. If the organization is allowing a for-profit entity that uses the name of the organization to solicit donations or acquires an amount from sales without any consent or control from the said organization, the organization and the for-profit entity will be penalized and you won’t get any deductions at all.

IS IT WORTH DONATING?

All in all, it is still good idea to donate your car to charity organizations. One good reason is that you won’t have any trouble selling your vehicle elsewhere. In other words, somebody is doing the work for you. Another is that you get to do a noble work at the same time making your expenses a little bit easier to handle. Imagine the difference you can make not only to yourself but to others as well.


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