Are you thinking about donating a car? That is a very good idea – for very many reasons, whether they are psychological (the pleasure of doing good), financial (tax cuts) or simply practical (no effort needed in repairing the car to convince people to buy it). However, if you want to make the most of this very kind gesture, you may want to take a few things into consideration because, while the idea of a car donation sounds simple enough, sometimes donating a car can get a bit complicated if you don’t think them through.
Donating A Car What You Need To Know
This doesn’t mean you shouldn’t be donating a car. But maybe you should consider the following issues before doing it:
● Be careful who you donate your car to. Not everyone that says they are giving away your car to charity will actually do that. Do a little research to make sure that, in case you are using a middleman, he will actually go about giving away your car to charity, rather than selling it. If you are making the gesture, make sure you are doing it right.
● After making sure that your car is actually being donated to charity, make sure it’s being donated to the right one. Not every organization that accepts your donating a car is a worthy one. Look for an organization that is in a field that actually interests you: if you are an animal rights supporter, you should obviously donate to an animal rights charity and so on.
● If the tax deduction is one of the main reasons you are doing this, make sure that your car donation counts for tax deduction. Not every donation counts as such and if, for example, your car is being registered as being donated freely by the intermediary, it would not be taken into account as a donation at all. Make sure to check this before actually donating a car.
● Check out your middle man and the charity organization beforehand. Again, this is about tax deduction. Certain legal conditions need to be fulfilled in order for you to receive it. Do your research beforehand and make sure that the conditions are fulfilled by the organization and middleman you are using to donate the car.
● If you want to do a really good thing, you can deliver the car yourself. If you do that, you spare the organization and the middleman the cost of delivery – which means that basically you will be making a somewhat bigger donation.
● Take care of the car before donating it. When donating a car, you don’t have to put a big effort into making it better than it is, but at least try not to make it worse. The better the car, the bigger the donation, the better your gesture and the bigger the tax cut you receive. Depends on what warms you up more at night. If you’re doing the delivery yourself, make sure the vehicle is transferred with care and, if someone else is doing it for you, make sure they are doing it right. There’s no point in donating a car if you are going to destroy it on the way there.
● Request a receipt from the organization or middleman that you donated your car to. If you declare a large value, the IRS will be checking you up and, unless you have a piece of paper to prove it, the chance of receiving your tax cut at the value you declared is rather slim. Make sure that you have evidence of your car’s value if you’re counting on receiving a tax cut.
● If you donate your car to an organization that plans to use it rather than sell it, you will not need the receipt. You will need to offer an evaluation of the car at fair market value. If you think your car is worth more than $5000, though, you will need an expert evaluation.
Why You Should Consider Donating A Car
The above may seem a little complicated, yet you will soon find it is much easier than actually selling the car. Do not despair and go for it. Donating a car is not just a good deed, it can be a profitable deed, if done right.