Steps to Follow in Choosing Car Donation Services
One of the ways in which you can help an organization is by giving your car for charity. It is worth noting that giving your used car is one of the cost effective way of assisting a charitable organizations. When donating your car, it is a good idea to practice causation to avoid getting in the hands of fraudsters in the industry. Many companies have registered car donation services which are full of false advertising and self-dealing. Car owners wishing to give their vehicles for charity need to ensure that the organizations they are working with is legit. In this article ,we will take you through the guide to donating your car for charity.
One of the ways on which car owners can ensure that they are partnering with the right charity organizations is by researching on them. The charity needs to have a 501(c)(3) non-profit status with the IRS. When the organization does not have the status, it means that it is not a charity and that your donation is not tax-deductible.
When searching for a charity organization, ensure that you are choosing is an efficient one. The market is flooded with many charity organizations. However, to ensure that you are getting the right one, look for those that have been evaluated by an organization that monitors the operations of charities and rate them for efficiency.
When it comes to donating your vehicle, you need to make sure that you have itemize it on your return. The beauty of itemizing your deduction is that you will take a tax deduction for your donation. When you want to claim, you need to observe certain rules. According to the rules, taxpayers are allowed to deduct the full market value of a donated car under three main circumstances. One of the conditions include the charity must be using the vehicle in its operations. The other condition in which you can deduct the full market value of the car us when the charity decides to move the car to sell or use it. Another instance in which you can get the full market value of the donated car is when the charity organization donates or sells it to a needy person for below market value. When you do not meet these conditions you will only be allowed to deduct what the charity receives from selling the car. One of the beneficiaries of car donation is Rawhide Youth Services.
The charity organization you want to work with needs to be licensed. By checking the license documents of the charity, you can have the assurance that you are not dealing with a fraud organization.