| There are a few important tips
that you should be aware of before you donate your vehicle to
charity. We have compiled some helpful information below |
| |
| .DONATE TO AN
IRS REGISTERED NONPROFIT ORGANIZATION: |
| Before you donate a car to
charity, make sure that the car donation program you have chosen
is a qualified, eligible, 501(c)3 IRS registered charity. If it
is not a qualified organization, donating cars to them may not
be tax deductible. Donors can use the IRS Web site to check that
an organization is qualified by searching Publication 78, which
is an annual list of most organizations that are qualified to
receive deductible contributions. You can also find Publication
78 in many public libraries. Or, if you prefer, you can call IRS
Tax Exempt/Government Entities Customer Service at
1-877-829-5500 and ask if the charity is qualified. Be sure to
have the organization’s correct name and its headquarters
location, if possible. You can check the IRS status of the car
charity you choose online by going to:
IRS Charity Search. |
| |
| DETERMINE
YOUR CHARITY TAX DEDUCTION: |
| In order to claim your car
donation you must itemize deductions on your personal tax
return. For taxpayers, the decision to itemize on Schedule A of
Form 1040 is determined by whether their total itemized
deductions are greater than the standard deduction. Of course,
many donors are not interested in the tax deduction and just
want to donate a vehicle to charity so that it can be used for a
good purpose. However, if you are interested in a tax deduction
when you donate a car, you should understand that in order to
obtain it, you must itemize your deductions and not just go with
the standard deduction. |
| |
| CALCULATE
THE VALUE OF THE VEHICLE YOU WISH TO DONATE TO CHARITY: |
| There are many online resources
for determining the fair market value of your car donation.
Checking the “blue book value” will give you guidance on the
general value of your donated vehicle, but you should also take
into account the overall condition of your car donation when
donating to charity. 'Your car donation is tax deductible and
will fall into one of these categories: |
- For low value vehicle
donations you can claim the fair market value up to $500.00
without any additional paperwork besides the receipt we will
provide at the time of the pickup.
- If you donate a car that is
worth more then $500.00, your deduction will be limited to the
actual sale price of your car donation. If your vehicle is
sold, all proceeds will benefit Activated Ministries, a
501(c)3 Christian charity. We will provide you with a receipt
stating the final sales price of your vehicle within 30 days
of the sale of your donated car. We will work to get top
dollar for your car donation, however most vehicles are sold
"wholesale" at auctions, dealerships etc. and are frequently
sold for less then the
Kelly Blue Book
value.
- For cars that are in safe and
good running order that we can specifically use for our
charitable projects or if we can significantly improve your
vehicle before it is sold then you can generally claim your
car's fair market value. Please call us at (291)
689-5234. if you want to verify if this would
be the case for your car donation. If your donated vehicle is
used by Activated Ministries for our charitable purposes or if
it is improved before the sale, we will provide you with a
receipt specifying this exception so that you can claim the
fair market value of your car donation.
|
| LOCATE A CAR
DONATION CHARITY WITH LOCAL OR NATIONWIDE SERVICE: |
| When you contact a charity that
accepts car donations, make sure that they provide pickup
service in your area. Many charities offer free nationwide
pickup of your vehicle donation. |
| |
| MAKE SURE
THERE ARE NO HIDDEN COSTS: |
| Most car donation charities will
pick up your donated car for free, at no cost to you. Make sure
you ask to ensure that there will be no hidden charges when you
donate a car. |
| |
| LOCATE THE
TITLE FOR YOUR CAR DONATION: |
| Usually you will need to provide
a title for your vehicle if you wish to donate your car to
charity. If you have lost your title, you should contact the
Motor Vehicle Department in your State to obtain a duplicate
title. Sometimes you can donate your car without having the
title, especially if your donated car will be sold for parts or
salvaged. Check with the motor vehicle department in your state
to determine if you must have the title for your vehicle before
donating. |
| |
| CHECK TO
MAKE SURE THE CHARITY YOU DONATE YOUR VEHICLE TO WILL ACCEPT
ALL TYPES OF VEHICLES: |
| Many car donation programs will
accept donations of cars, motorcycles, boats, RVs, motor homes,
campers and personal watercraft. If you are thinking of making a
vehicle donation make sure the charity you choose accepts your
type of vehicle. |
| |
| OBTAIN THE
NECESSARY IRS FOR TO CLAIM YOUR CAR DONATION TAX DEDUCTION: |
| If your combined charitable
donations of non-cash items are valued at more than $500 during
the tax period then you will need to fill out IRS form 8283,
which can be downloaded from the IRS web site:
IRS form 8283. |
| |
|
Cars4Christ
provides fast, free, nationwide pickup of your car donation with
no hidden costs to you. |
