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work. This type of direct car donation means that the
funds are not passed through to other charities, and support
the work of the charity directly.
Here
are additional items to consider when donating your car
or other vehicle: Type of charitable work- regardless
of the type of organization that you donate your car to,
you want to make sure that the money supports a cause
that you believe in. There is a wide range of charitable
activity that you can support, ranging from cancer research,
to orphanages, to inner-city outreach, to emergency relief,
to drug counseling, to global hunger and much more.
Tax
deductibility- most car donation charities are classified
by the IRS as non-profit charitable organizations, and
car donations made are tax deductible to the full extent
of the law. If you end up donating your car to a for-profit
dealer or fund-raiser, make sure that your deduction would
be considered tax deductible. In addition, individual
tax situations vary, so always check with a tax professional
or other advisor to confirm if you would receive a tax
deduction in your specific case.
Value-
the value of the vehicle for tax deduction purposes is
made by you, the donor. Beginning in 2005, the rules for
declaring value changed, and the donor is required to
justify the stated value. There are several online resources
where you can get estimates of the car's value for this
purpose.Each car donation charity will give you a receipt
for the donation, and then you will have to declare the
fair market value on your tax returns.
Title-
to donate your car, you generally need clear title, but
other arrangements can sometimes be made if you do not
have the title paperwork.
Condition
of car- most car donation charities will take your car
regardless of condition (even it doesn't run) unless the
anticipated proceeds from the sale would not cover the
cost of towing the vehicle.
Pickup
area- if you live anywhere within the US, you will be
able to find at least one car donation charity that will
accept your donation (you just might have to do a little
bit more searching if you live in a remote area).
Percentage
donation- a good measure of any charitable organization
is the percentage of donated funds that support the actual
charitable work and are NOT used to support the overhead
of the charitable organization. Finding this percentage
for all the car donation charities requires a significant
amount of research, as this figure is not listed on most
car donation web sites.
In
conclusion, we hope you have found the information we
have put together for you useful. We recognize that this
guide was in no way exhaustive, and that there is much
more to donating a car than what is included here. We
suggest that you use the information in this guide as
a starting point in your search for the right car donation
charity for you.
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