When you possess a car and want to donate it to a charity, certain things strike your mind. One of the most critical questions that cross your mind is the process of donating. If it’s your first time, you must have an ample number of questions in your mind, which will give rise to various doubts. You need to check the way that you are opting for donating your car is legitimate or not. If you are a newbie and want to do this noble cause, then this article will guide you. By donating your car, you can make an indelible impact on society and bring smiles to several faces.
This guide will direct you through the complete process of donating a car. Just by following these simple steps, you can achieve your goal and will feel good about yourself. You should consider these steps because they will maximize the charity benefits and reduce risk to yourself. So, let’s get started.
1. Research the charity
Before donating your car to the charity, the first and foremost requirement is to research the charity to which you plan to donate the car. By researching, you will get to know more about the charity and its work. While researching, keep a check that whether the charity has 501(c)(3) non-profit status or not. Also, check for the IRS status for the authenticity of the charity. If you get both of these things, then the organization you are researching is a charity otherwise, not. And your tax will be deductible only in the case of charity.
2. Pick out efficient charity
Once you have researched various charities, it’s time to check for the efficiency of the charity. You can pick the one that suits your requirements based upon the rating of charity. You can easily check the rating with the assistance of various online resources. They will guide you with the rating, and you can analyze whether the charity is serving its intended cause or not. This will help you come up with a set of potential charities to go with.
When you are planning to donate a car, keep a check on how much tax you can claim for the donation. This is one of the most crucial aspects that you should never ignore. You need to abide by the rules while donating your car. If you are a taxpayer and you want to deduct the full market value of the car, then you can do this under three circumstances i.e.
- If the charity uses the car for its operation
- The charity improves the vehicle to use it or sell it
- If the charity sells the car to some needy person below the market value of the vehicle
4. Drop off the car
You can donate the car either by riding the car yourself to the charity you want to donate, or some intermediary organization can do this for you. Even if your car is not in working conditions, this intermediary will also help to tow the car and safely deliver it to the charity.
You can take the sign and details of the person who has come to pick up the car. This will help you to have all the proofs. Even if you are driving the car yourself for the charity, you will be assured that there is no discrepancy and that you are delivering the car to the right hands.
5. Get a receipt
Once you have decided to donate your car, make sure that you get the receipt of the car. This will help in paperwork and will give you some handy proof of donating it to the charity for some good cause. You can get this receipt either directly from the charity or from some intermediary that is responsible for handling your donation. This will be essential for the tax deduction purpose.
6. Snap it
Once you are done with all the formalities, you should take a picture of the car and other receipts. Make sure to take pictures of all the repairs if you want to claim the deductions. This will help you keep a tab of all the essentials that you have performed while donating your car.
These are the crucial steps that one needs to perform to donate their car. If you follow these steps in a dedicated fashion, you can easily donate your car without wandering here and there. All these steps work hand-in-hand to make the process smoother and efficient for you. You can even take the assistance of some intermediary organization to donate your car for charity and contribute to some noble cause. This will not only help you but also offer you a great sense of satisfaction.