How to Maximize Your Car Donation?
12 tips will give you advantage. There are a lots of charity car in online or offline, and several of this charity organization are fake or scam. So to avoid you from scam and get the tax deduction at the same time, you might read this following tips. This will be your smart moves. |
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1. Search charity that accept car donation
Search in online and offline search. For online you can log on in charity website that you find then double check with Charity Navigator. For offline, Ask your friend, or your family that might have been donated a car.
2. Never Using Middlemen or third person or profit intermediary organizations
There are so many profit intermediary organization advertise in commercial, flyer, or billboard, offering you service to donate your vehicle, automobile, truck or event boat for Charity. But the truth, this organizations usually taking 50 to 90 percent of the vehicle value for their organizations and of course the charity organization only get the remaining money. For more sure, check directly the charity organizations and find the info whether the accept car donations, truck donations or boat donations.
3. Find a good, worthy and reputable charity
Not all of the charities accept car donations, boat donations or truck donations. Do some research until you find a good and reputable charity. Then track the charity organization record online at Better Business Bureau Site and through Charity Navigator.
4. Do the math by yourself
If you still have to use an third party organization because you don’t have a time. At least ask how much your car or boat value to the third party organization. If your organization only gives to charities flat fees, let’s say $100 for used auto or $2000 a month, it might be your donation may not eligible for a tax deduction. So you’ll have to makes sure the right step. Don't forget to double check to the charity organization to confirm the value are the same value that the third party organization gave to you.
5. Check the status of your recipient (charity organization).
This is to know are you to qualify for a tax deduction, The charity organization that accept your donation must be approved by IRS and have IRS approved 501(c)(3). Make sure your church, mosque or temple are have the qualifies. Or you can visit the Internal Revenue service’s in internet. Type “78” in search box at IRS website and you can find the Publication 78 for qualifying non profit organization.
6. Delivery your car donation or boat donation by yourself
Ok you have successfully find a worthy charity, the next step is deliver by yourself your car donation or boat it will help to maximize the benefit of your donation or charity.
7. Give the car donation with care.
If you want to remove parking ticket or other shape of violation after you give donation. Then you have to formally change the title of your car to the charity, and then report to your state department of motor license or vehicle. Fill completely the ownership space on the charity donation paper, don't leave it blank.
8. Check the regulation about your car donation.
If your car of boat has value more than $500, You have to get a receipt from the charity that you car donated. This is to know the exactly how much money do you donated. And to give IRS a proof. So you better keep in save the receipt.
9. Don’t forget to report the fair market value of your donation.
If your car donation are less than $500 or your auto donation charity are used for charitable work and the charity not sold your vehicle, then you won’t need a proof or evidence about its sales price. Then report about its fair market. The value can be found on the listing from Kelley Blue Book, the Hearst Black Book, or a guide from the National Auto Dealers Association (NADA). You have to make sure use the correct figure for the date, mileage and condition about your car. If you choose the highest type of your car model and year without checking other factor, it may not pass with the IRS
10. Save all documentation.
Take a pictures about your car donation and other receipt, such as receipts for new upgrades, tires, accessories to know the exactly value. The charity not obligated to value the car and if IRS find your model inaccurate, you will have to pay the penalties.
11. Keep it always all the paper trail.
Your car donation value more than $500 then you have to sign the IRS form 8283 for your tax return. If your car donation is more than $5000 then your paper and documentation must be including an outside appraisal. You also need receipt from the charity for a proof and a copy that show the title change.
12. Focus in detail
All the paper maybe a bit annoying, but this is might be your biggest donation, so you will have to make sure the charity get the most benefit and you get the all possible tax deduction.
Hope this 12 Tips can help you to maximize your car donation
