I want to Donate My Car To Charity!

I want to Donate My Car To Charity.

The Salvation Army National Headquarters
The Salvation Army's work, has reached those in need both internationally and here within the United States.

The American Lung Association
A good organization fighting for clean air for everyone!

The Easter Seals
The Easter Seals have been very instrumental in ending birth defects.

These are some organizations you might want to check, if you car donation can help! Remember Donating Your Car To Charity can help Others, and help You feel good.

To donate your car to charity, you must establish your goals in this donation. Some examples:

• Who do I want to help?
• What is a charity?
• How do I get a tax deduction for my car donation?
• What paperwork is necessary for my tax records?
• What does a charity get from my car donation?

All these questions are very important when donating a large tangible item like a car. Lets address some.

Who do I want to help?
When looking for a charity to donate your car, it's typical to base your choice on a charity that you have had experienced with. This might men been helped by, or knowing someone who has been helped by this charity. This is a life experience and it hard to convey to those who never had any relationships with a charity. If you have now experiences with a charity, then you might start by thinking "What is important to me?" Work from there, and find organizations who focus on issues that are important to you.

What is a charity?
This can be complicated. The layperson might think a charity is an organization that helps others. Well that might work for you, but if you intend on getting a tax deduction, you need to ensure the organization is a recognized charity by the IRS, and Your States Tax Division/Agency. Just because a charity has a status of 'non-profit' does not mean contributions to the charity are 'tax deductible'. Do your research, and seek advice from your tax planner.

How do I get a tax deduction for my car donation?
Generally speaking, any contribution to charity is a contribution to a better society. But, to meet the requirements of the tax-man, you need to do your home work first. Some states required some more paperwork than others, and some limits are placed on a donation. Since a car donation to charity is a large donation, you might be limited to how much you can deduct. Example, if you are limited to 10% Adjusted Gross Income, and you donate an expensive car worth $6,000, and make an Adjusted Gross Income of $40,000, then you can only legally deduct $4,000 of the cars worth as a charitable donation. This was not tax lesson, but an example of how you need to do your home work first, before donating your car to charity. Seek professional tax advice.

What paperwork is necessary for my tax records?
Once again, this a tax advisors question, but generally you need a receipt of your donation, and documentation of the cars actual value. Once again seek professional tax advice, since each persons situation is different.

What does a charity get from my car donation?
Very good question! It is wide spread that most charities do not used the car that you donate. The sell the car for what they can get, and use the cash for their organization's services. Ask the organization what happens when a car is donated, and how much per dollar of car's value do they actually get.

-Let me digress a little, a story was going around that a non-profit organization was formed by a junk yard. They picked up car donations, handed receipts for the cars value, sold the car below value to the junk yard, and took the little cash they made and donated that to charity. Now the junk yard would take the car they just gave themselves, and resell it at a great profit. It was a scam, and a very hard one to follow. So try to make your car donations directly to organizations you are familiar with, and you know how they handle your car donation.