Donating might mean mainstream, but you might as well think that the biggest winner in a car donation process is not the charity recipient but the donor himself. When donating to a car to a charity recipient, you must not mind the quick and easy television appeals, rather, find a reliable, reputable, and high-performing charity that will make the most of your car donation. Hence, you can maximize the amount that gets to charity, while you minimize the risk of an IRS audit. This article will give you a guide when you opt to donate a car.
- Opt to find a charity that directly accepts car donations from a direct donor. If it is possible for you to avoid the for-profit intermediary organizations that handle your donations through advertising pervasively. Opt to find a charity that handles the transaction themselves to ensure a 100% profits that will remain at the charity alone. Also, always do your research ahead to find a high-performing charity that aims to the same kind of work you like (try checking cars com).
- Correctly transfer the car to your chosen charity. Walk away from a charity and find another one if they ask you to leave the assignment of ownership space on the charity donation papers blank which will allow them to not have to re-title the auto. When this happens and you don’t formally sign your car over to the designated nonprofit organization, chances are you will get held responsible for any parking tickets that are subsequently incurred, or you may even get considered liable if it may ever get used in a crime. The car will still be yours in the eyes of the law if someone buys it from your chosen charity at auction and doesn’t bother to register your car.
- Use the fair market value for your car. You can distinguish if your car should use the fair market value during the following, otherwise, you may only deduct the amount that your chosen charity sells your car for at an auction as indicated on the written receipt that they send you:
- the charity keeps and uses your car instead of selling the vehicle,
- improvements are being made by the charity before they sell it,
- a person with low income is being offered to buy your car at a discounted price,
- or if your car is worth less than $500
- Have your paperwork completed. IRS audits are most often triggered through non-cash donations, this is why it is important to keep thorough documentation of a car donation. More often than not, especially if your car has a value of over $250, most likely, you will have to get and keep a written acknowledgment from the charity that you have chosen.
Donating a car that you own is crucial and is a tough decision to make. Make sure that you follow these tips and double-check all necessary details that you will have to make before choosing and donating to a charity. Make sure to also check the terms and conditions of your donation to ensure a heartwarming donation experience.