Automobile Charitable Donation
One of the fastest growing trends in charitable giving is the automobile donation. An automobile charitable donation can help both the giver and the recipient in various ways. It is estimated that nearly one million people donated a vehicle to charity and took a deduction for it on their annual tax return. This amounts to an overall tax savings of more than $600 million. By following a few simple guidelines you can make the car donation process effective, simple and risk-free.
The first thing you'll need to do when donating a vehicle to charity is choose the organization you want to work with. Many experts recommend that you avoid an intermediary facility and go directly to the charity of your choice. There are intermediary organizations such as Cars 4 Causes who donate 100 percent of all proceeds to charity. These organizations are fine to use but for-profit donation centers should be avoided. The majority of major charities do have some sort of car donation program that is worth checking out. For example the Salvation Army, the Special Olympics, the Purple Heart Foundation and the Make a Wish Foundation all have car donation programs.
While most car donation charities will pick up your vehicle at no cost to you, it is best to drive it to the facility yourself. The reason for this is because the towing costs cut into the amount of money going to the charity. Speaking of money, you may be wondering about the tax implications of donating a vehicle. The IRS allows a deduction up to $500 for a donated vehicle. If you want to deduct more than that you will need a receipt from the charity organization stating the sale amount of your donated vehicle. There is also a special tax form (Form 8283) that will need to be completed. Donated vehicles worth $500 or less do not require this form.
An automobile charitable donation can go a long way towards helping your favorite nonprofit organization. Most every imaginable charity can benefit from your unwanted vehicle. So if you've got an unwanted car, truck, SUV, RV or boat that you are considering trading in or taking to the junkyard, consider donating it to charity instead. You will be helping those in need and getting an attractive deduction off your federal tax bill.
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