If you’re thinking about a charity car donation I’m going to outline some of the facts you should know. You can receive a nice IRS tax deduction for your old car or used car and help someone in need in the process.

It’s called car donation or charity car donation when you give a charity organization your vehicle – automobile, car, truck, ATV, RV, airplane or any other vehicle which might or might not be in useable condition. In the U.S. charitable vehicle donations provide a great tax benefit for the donor and it’s rapidly gaining in popularity.

First you want to learn the mission of any charity you’re considering. If you have a specific charity in mind for the car donation do some research on it, especially if you’re not sure how reputable the charity is. There are many national and local charitable organizations that advertise in newspapers or on television and openly announce they are looking for car donations. You have probably seen some of these, but are they your best choice?

Sometimes charities will use the car donations themselves in their daily charitable activities – sometimes to transport people. Perhaps they may use it to transport people in need to doctor’s appointments, social worker appointments, hospital tests, etc. More often though the vehicles will be sold at auction or off their car lots to raise money for the charity’s programs or their general fund. Yes it is not common knowledge that many charities have their own car lots. Many Goodwill Industry stores have their own.

Many people do choose to donate their used and unwanted cars in order to help others. If you buy a new car or own a car that isn’t running, you can consider donating the car, truck, or other vehicle. You can also donate boats, RVs, ATVs, airplanes and other vehicles or even real estate depending on what your charity accepts. Your donation is tax deductible which helps you and the organization that you donated the vehicle to.

Day in and out, charities provide services and needed support to people in communities all over the nation. While some may receive government grants or private donations, this is never enough to take care of the many causes they pursue. Charity car donations are a planned part of the non-profit organization’s budget. These vehicle donations can make the difference in the kind of services they can offer. So if you donate vehicles you will help these organizations continue to function

In a nutshell, car donation means acquiring old cars from donors and donating them to charity organizations. There are car donation companies that are intermediaries or links between the donors and the people who benefited from these donations. They are a big help in funding for charities. Some companies even help organizations that do not have their own charity programs. The car donation companies can auction the donated car or other vehicle in the marketplace and the money is given to the charities or the car can be used by the charity organization or be sold on their used car lot.

When you give your car to charity you are given a charitable gift IRS Tax Receipt. The vehicle donations when made to a reputable and bona fide charitable organization are tax-deductible. The IRS allows the donor-taxpayer to claim a tax deduction on the estimated value of the vehicle up to $500. The donor of the car or vehicle must have title, so make sure you have it handy when you start the process.

Make sure to ask if the charity handles the car donations – have their own charity car donation program or pays an outside company to do it. If the for-profit company handles the car or vehicle donations, find out just how much money the charity receives from the sale and how much will go to the for-profit company.

You will see car donation program in just about every major city in every state in the U.S., including California, Massachusetts, Minnesota, New Jersey, New York and Michigan. There are no laws preventing charities from accepting these types of donations.

Some of the car donation charities you might see are: Target, Purple Heart, Kidney Foundation, Salvation Army, Goodwill Industries and various cancer organizations.

In any case you will greatly benefit for your charity car donation both in claiming a nice car donation tax deduction or benefit and in helping charities continue to operate so they can help people in need.

Are you tired of using your old car but can’t seem to find the time to replace it? We all know that buying a new car doesn’t take a lot of time but it is getting rid of the old car that does.  If you opt to sell your old car, this would mean taking time off from work to refurbish your car, advertise, entertain possible buyers and do the necessary paperwork.  Fortunately, you can avoid all these with charitable car donations.

Through charitable car donations, you are guaranteed a fast and convenient way to dispose your old car.  Charitable car donations are executed by simply transferring or donating your car to a car donations services who act as intermediaries for charitable institutions who are involved in specific or varied causes.  The causes that these institutions may support are: helping disabled people, homeless individuals, cancer patients, or battered individuals.  So, charitable car donations not only provide you with a fast and convenient option of getting rid of an old car but a way of helping the needy as well.

Moreover, the federal government rewards you for your charitable car donations with tax deductions.  According to the federal tax legislation governing car donations, the gross sales amount or the fair market value is an allowable deduction to tax payable.

If you want to get rid of your old car through charitable car donations but don’t know how, here are the steps that you should take.

1.  Prepare the car’s title.  Car donations services only accept cars with titles.  So when you decide to donate your old car to charitable car donations, make sure you have your car’s title on hand.

2.  Search for a reputable car donations services.  The whole process of donating your car is convenient and fast, and so is looking for a car donations services.  You can do this at the comfort of your own home by surfing online.  However, do not just choose the first car donations services that you come across.  Always look for a 501(c) (3) charity organization classification.  This is to ensure that the legal personality of the car donations services.  If you still doubt the car donations service’s 501(c) (3) classification claim, you may also verify with the IRS Tax Exempt and Government Entities Department.

3.  Call the toll-free number and fill out the application form.  Online car donations services have toll-free numbers that you can call.  Some information, such as the paperwork and car pick-up process, may not be available on the website and you may want to verify this.  Aside from the phone call, car donations services may require you to fill-out an application form.  This will not be a hassle for you since this application form is available online and submitting entails clicking the submit button.

4.  Wait for the car pick-up.  The car donations services lives up to their convenience and speedy feature with immediate car pick-ups, which is usually within 24 to 48 hours.  When your car is picked up, it is important to ask for a document acknowledging the receipt of your car.  This document however, may not be the document required for your tax deduction.

5.  Wait for your tax deduction paper requirements.  To claim your tax deductions, you will be required to submit an acknowledgment receipt containing the details of your charitable car donations.  Car donations services prepare this paperwork but may take a maximum of 30 days.  After picking up your car, the car donations services may need time to refurbish or fix the car.

Used cars can now be donated online and offline to a chosen charity/cause. Online websites offer information and choices for people to make donations by listing charities and other organizations online.

Donate a car websites undertake to:

• Provide all essential documentations.
• Handle collection of the vehicle.
• And reach the vehicle to the selected charity.

Before donating a car it is essential to know:

1. The laws that govern donation of automobiles to charities. Before making a donation check what the IRS rules are.

2. Choose a charity with care and ensure that you get a receipt from the charity specifying donation of the vehicle.

3. Check whether the charity is qualified. A source is publication 78 on the IRS website. Annual lists of organizations qualified to receive deductible contributions are posted on the IRS website.

4. Ensure that your vehicle is itemized on your annual tax return. Deductions for car donations are only eligible if the car or vehicle has been itemized on the annual tax return.

5. The car value must be computed fairly. Find out what factors play a role in determining the fair value of a car to be donated to charity.

6. The vehicle donation must be documented carefully in keeping with sate tax laws. Ensure that this aspect is taken care of accurately.

7. Check whether the car donation website you are using is established and reliable. Make the effort to do a background check on the charity you choose.

8. In needed check with the IRS officials. You can write to them or call toll free at 1-800-829-1040. If you suspect fraud ask the state charity official who will be located at the state attorney general’s office. Check with IRS publications 526 and 561.

Always choose an IRS registered non profit organization to donate a car. Before donating find out the pros and cons of a car donation and what the charity tax deduction will be. Ask the charity whether the vehicle will be sold to realize funds or used by the organization. Ensure that there are no hidden costs when you donate the car. You will need to keep car title papers ready when you donate a vehicle.

Car donation programs accept cars, motorcycles, boats, RVs, motor homes, campers, as well as water craft. In the US charitable donations of cars are eligible for tax deduction and for a value less than USD 500 the estimate of the car’s value can be made by the owner. Through car donations US tax payers reduced their taxes by over USD 700 million. Charities either use the cars or sell donated cars through used car lots or auctions to realize funds.

As a donor you need to remove all personal effects from the car and ensure that the car is donated in a clean condition. Prepare a folder of the necessary papers and keep a copy of the papers you are handing over as record. Insist on receiving a receipt from the online site as well as the person who collects the donated vehicle. Request that the person who collects the vehicle you are donating to charity carries some form of identification/ authorization. Protect your interests by donating a car to a charity of your choice through reliable means.