Donations of car is made by donors to gain maximum amount of benefits in terms of tax donations and charitable institutions gains by getting a car which can be used for serving different needs of the organization. A large amount of donors are these days making attempts to donate cars, and in order to promote the practice guides to donating has been bought forward to ensure that donation can be made by individuals with minimised risks and maximising returns.
Charity that accepts car donations
Try and avoid organizations that take the help of dealer or other people for bringing in car donations, because these intermediaries keep a major part of your share for themselves and use a small amount of charity. Hence it is better to contact an organization which handles the transaction of charity all by them, thus 100% of the amount is used for charity. Hence it is better to contact such organizations first.
Take out time to find charity which accepts cars
Don’t forget the fact that you are making a car donation, so one should be sure that he is giving away the asset who makes complete use of it. However, if you are not able to find the requisite organization, and then take out time to conduct research and find the right charitable organization.
Drive the car to charity
It car is running condition then drive the car yourself to the place. Towing car to the institution can add on cost and it can be avoided by driving it yourself.
Transfer the car to charity
At times the charitable organisations shall ask the donor to leave the car at the place leaving the documents of title blank. If charitable organization demands such a thing, then it is better to find any other charity for your car. If the title is not transferred right away, then it shall hold liable the owner for any parking tickets or in case of crime. Charity can not only use these cars for transferring of goods but it can also be sold off to the third party in your name, thus carrying your name forward in spite of the fact that you are not using the car anymore. It is hence important to transfer the title as and when the car is donated in charity.
Value your car using the right way
IRS has become a lot concerned for correct valuation of cars that are donated in charity. The audit companies do a strict audit of such transactions and also make sure that valuation and deduction is made correctly. It hence is important for the owner to value their cars correctly. Deduction can be claimed by donor after receipt of charity is received by the donor indicating the right amount of car on receipt.
The cars donated for charity should be bagged with complete documentation, as incomplete papers shall lead to questions in audit. Say car valued at USD 250 is donated, and then donor should receive an acknowledgment of the same amount from the charitable society.