Guide to donating Your Car to Charity
One of the ways in which you can help an organization is by giving your car for charity. It is worth noting that giving your used car is one of the cost effective way of assisting a charitable organizations. People who want to donate their used vehicles should be keen in the process since the industry has many fraudsters who mascaraed as charity organizations. One of the ways in which false car donation companies use in tricking car owners is false advertising. Before you can give your car to charity, you need to make sure that you are working with right organization. In this article ,we will take you through the guide to donating your car for charity.
Before you can give your car for charity, research about the organization. The charity needs to have a 501(c)(3) non-profit status with the IRS. In the event you choose to work with an organization that does not have a 501(c)(3) non-profit status with the IRS, it is sign that it is not a charity and our car is not tax-deductible.
Another way of giving your car to charity is by picking efficient charity organizations. The market is flooded with many charity organizations. However, to ensure that you are getting the right one, look for those that have been evaluated by an organization that monitors the operations of charities and rate them for efficiency.
People who want to donate their vehicles need to itemize their properties on their returns. The reason why car owners wishing to give their vehicles for donation need to itemize their deduction is to enable them take tax deductions for their donations. It is worth nothing that before you can claim, you need to observe certain rules. When you want to deduct the full market value of a donated car, you can do so under three main conditions. If you want to deduct the full market value of the car you had donated, the charity you choose needs to be using the vehicle in its operations. In addition, the charity organization you want to work with needs to improve the condition of the car to sell or use it. In the event the charity organization you are working with donates or sells it to a needy person for below market value, you can get the full market value of the car you donated. Car owners who do not meet the three main conditions will have to deduct the amount the charity organization will receive from selling the vehicles. Car donation is vital since it helps many organizations such as Rawhide Youth Services.
The charity organization you want to work with needs to be licensed. The beauty of checking if the charity you want to partner with is licensed is that you will know if the charity is legit or not.