How to donate a car or boat to charity

How to donate a car or boat to charity

Donate A Car

Many intermediary organizations to profit advertise aggressively on television, billboards and elsewhere, offering to help you donate your car to charity. Here's the catch: These organizations typically carried out by about 50 percent to 90 percent of the value of the vehicle by themselves, and charities not get what they could have achieved. To avoid this, they correspond directly to the charities you admire and find out if they accept donations car or boat.

First, find a worthy charity:

If the charities that support normally are not equipped to make such donations, do some homework until you find a reputable charity that is. You can research a history 'charities online at this site Better Business Bureau and through Charity Navigator.

Check out the math:

If, however, you feel compelled to use an intermediary organization - possibly because it is busy - at least ask the organization of the amount of the value of the car or boat will go to charity. If the organization simply gives charities flat fees - say, $ 100 for a used, regardless of its value, or $ 2,000 per month vehicle - your contribution may not be eligible for a tax deduction.

Know the position of your recipient:

In parliamentary law for you to qualify for a deduction, the charity that receives your donation must be approved by an IRS 501 (c) (3) organization. His church, synagogue, mosque or temple likely qualify. (Check first only to build safe. (Just write "78" in the search field on the IRS home page and sent to the publisher on the right. (Just write "78" in the field IRS search home page and sent to the publisher on the right.)

Manage the delivery yourself:

Once you have identified a suitable charity, recognize that have to pay someone to pick up your car or boat for you. To help the charity maximize the welfare of your donation, leave your car or boat off itself.

Remove the vehicle with care:

Do you want to eliminate all risks of running up parking tickets and other violations after you said goodbye to your donated vehicle? Then re-title formally the vehicle to charity, and report the transfer to your state's department of motor vehicles or licensing. Never agree to give space property documents charitable donation blank.

Your idea of the donation’s value probably won’t cut it:

If your car or boat is worth more than $ 500, the IRS will want evidence to determine how much the charity has for it. (Most charities that have these donations turn around and sell them for cash.) You need to get a receipt from the charity you know exactly how much money was made.

Recognize when you can report the fair market value:

You will not need evidence of the selling price if the charity holds the vehicle or vessel and uses it in his charity work, or if your donation is worth less than $ 500. Then you may report its normal market value, based on records Kelley Blue Book and similar authors.

Maintain a thorough paper trail:

If your donation is worth more than $ 500, you must attach IRS Form 8283 with your tax return. If it's worth more than $ 5,000, your documentation should include an external evaluation. You will also need proof of the donation, such as a receipt from the charity and a copy of the title change.

Be very detail oriented:

This paper trail may seem cumbersome, but think about it: This can be one of the largest charitable donations you ever make. By taking the time to dot the i's, you can ensure that the charity gets the most benefit and get the biggest possible deduction.