Car donation for charities has become very common these days. Most people prefer to donate their old, used, car for charity instead of going through the hassles of selling it. Since the proceeds of the donation would be used for a worthy cause, this is generally a noble way of getting rid of an old car. Making a car donation has become very easy with most charity houses making the process easier. There are online application forms, hassle-free processing and even easier procedures from the IRS for such Noncash Charitable Contributions. Car donations are accepted by many charity houses. These organizations sell the cars and use the proceeds for some charitable causes. Some organizations simply sell the cars and then distribute the proceeds among other charity organizations. Donating your used car can also help you to get some deductions on your taxes. You can claim the car's fair market value if the car is worth less than $500 or it is in good working condition. You can claim deduction equal to the actual sale price of the car is the car is worth more than $500. However, before donating, ensure that the donation program is a qualified, 501(c)3 IRS registered charity since only such programs are eligible for tax deductions. Information about such charity programs can be obtained from the IRS website or in the Publication 78 that is available at most public libraries. If the total donation is worth more than $500, then a separate form (8283) has to be filled. Determine the value of the car meant for donation. This can be done by checking the blue book value. Take the condition of the car into consideration while determining its value. Most charity organizations take donated cars for free, but there are some which charge certain fees. Make sure you have the title for the car. Many charity houses are providing services like free car pick-up and towing from any location. There are many organizations that accept used car donations. Information about can be found in yellow pages or through advertisements. The Internet is a very good source for finding information about used car charity donations. Moreover, the donation process can also be initiated online. |
