Once you have made up your mind to donate your car, it becomes one of the important things to find the best charity to suffice your purpose. At very first glance, this seems to be very tedious to come up with one charity program from various options that you can get around you. But it is not. If you are the one who is struggling to find the best charity for a car donation, then you have landed at the apt page with this guide.
As you keep on reading further, you will notice the step-by-step approach in which you can proceed further to find the best charity as per your needs. So, keep on reading till the end to get acquainted with all the procedures to find the best charities around you. Let’s have a look at how you can find one on your own without any external infringement.
1. IRS Guidelines
IRS guidelines are a set of protocols that you need to know beforehand by donating your car. These protocols are specifically designed for charitable donations. You should check these precisely so that you don’t put yourself in any trouble in the long run. When you go through these guidelines, you can see that you can only write off your donations if you itemize the deductions. You can’t completely claim all the tax with the car donations, but there are still some implications to it.
There are a set of rules that you need to be aware of deducting the amount of the donation from your taxes. These are as follows:
- You can deduct the gross proceeds of the sale if the charity sells the car on your behalf.
- If you encounter that the car is sold at a price less than $500, you can either deduct that price or $500, whichever is smaller as per the amount.
- You can also deduct the car’s fair market value as per the date you donated it if the charity has made some improvements to it.
- You can even deduct the fair market value for your car if the charity uses the car for their internal tasks.
One should be aware of all these guidelines to make a fair decision to find the best charity.
2. Non-profits that accepts car donations
You will find an ample number of charity organizations that accept car donations. When you come across so many options, then you get stuck in one way or the other. You can take assistance like a sitemap of donateers to help you find the non-profit organizations around you in a single place to ease your problem. Some organizations will directly use your car for their internal purposes or sell it to gather the funds for their programs. This will help you find the best charity for your car donation purpose.
3. Check for the legitimacy of the charity
Before you decide on a charity to donate your car, you must be aware of whether the charity is legitimate or not. Ensure that the charity you chose for donation has a presence in IRS’s tax exemption database or some national charity database. Also, make sure that the charity has the 501(c)(3) designation; otherwise, your tax won’t be deducted by donating to the organization that doesn’t have this designation. Keep a tab that the charity you select has a good reputation or not because that speaks all about the motive of the charity to serve a particular purpose.
4. Transfer the title accurately
When you donate your car, it becomes your moral responsibility to transfer the car to the name of the next owner. When you donate it to the charity, you should transfer the title to their name to become the legitimate owner of the car. If you fail to do so, then you can be in big trouble in the future for any criminal offense or other issues about the car. So, you need to fill this column carefully while donating your car and pay proper heed to it.
5. Do proper paperwork
Paperwork offers you legal authentication and assurance for your donation. So, you must do the paperwork properly. Make sure that you take the scanned copies of the documents and even keep them saved with photographs for future use. When you want to get the tax deduction, these papers will be the sole pillar. Make sure your read through all the terms and conditions mentioned in the papers and sign to documents accordingly. Even if you are not sure about a certain clause, you can also seek clarity but don’t sign them in hasty.
By following these steps religiously, you can come up with the best charity for your car donation. These steps will help you find the optimum charity that is legitimate and serves all the essential deeds for which it is working. So, follow this guide and donate your car to bring a revolutionized change in society.