The most generous act of all is to give. Donating your car is an act of giving, which can also save you taxes. Many NGO’s advertise about tax cuts in their ads heavily.
You should really do some digging to get a clear idea of what donating to a charity means before giving them the key to your automobile. Here are some tips for finding the best non-profit organizations to give away your car.
The department of inland revenue and services emphasizes on some guidelines to follow before you donate your car. The car can only be given if the taxpayer agrees to itemize subtractions. There are some limitations on the deduction of charitable contributions.
If the car gets sold by charity, you can only subtract the gross profits of the sale. If the car is sold for less than $500, the fair market price can be inferred (on the day you gave it away) or $500- if it is lesser than the price.
In case the charity shows intentions of making some improvements in the car for selling it later, you can subtract the fair price in the market of the vehicle on the period that you offered it. Besides, in case the company wants it to use under its name, like for supplying meals to elders, you have the option to deduct the market price value again.
Non-profit organizations that accept donations
There are a couple of charities that run their ads on tv that accept donations, including car donations, but these are not the only NGOs. If you want to find a charity that has a noble cause and makes direct or indirect use of the vehicles it buys, you should search the internet to find them.
Check if it’s legit
Be sure to check that the charity is in a legitimate organization and does what it states. Don’t get scammed while trying to do a good deed. Look for the organization on a state charity record or IRS’s tax-exempted organization database.
Pass on the title correctly
You must delegate the title properly while donating the car to a charity. If you don’t, you will be responsible for mishaps or offenses committed by the succeeding buyer. Almost all legit non-profit organizations will ask you to pass on the title to them. Don’t leave the paper blank as you will be held responsible if something wrong happens later.
Paperwork matters the most!
Be sure that you received all the necessary paperwork for the contribution and save it accordingly. Make backups of the paperwork, scan them, just do not lose them because they will be essential for any possible tax audits.