Methods You Can Use to Donate Car to Charity and Obtain the Tax Benefits You Need and Want

If you are going to donate a car to charity you want to ensure that the organization you select actually takes vehicle donations, because a lot of small organizations cannot handle big donations. Deciding which organization is the best one for you means you will have to perform a bit of research. A site on the internet called Charity Navigator will help you find one that can take your vehicle. This site might provide a breakdown of the amount each organization spends on overhead so you can know that donating your vehicle is doing the most good. Knowing how much is eaten by overhead is important because you do not want the middle man to eat up a large portion of your donation. You need to make sure you know what amount is going to the organization before you give it your car. If you are interested in investigating the organization to which you wish to donate, you can check out the IRS site at their website and look up publication 78. If you take the vehicle right to the donation area on your own, more funds will be funneled to the organization. Basically, the organization has to shell out cash to have a company tow the vehicle to their donation area. Try to find a receipt that indicates the amount your vehicle was bought at in the auction, especially if you think your vehicle could bring in excess of $500.00. Vehicle donation is being investigated by the IRS due to the fact that a lot of donors claimed more than $500.00 merely because they thought it should have been sold for more. If your vehicle is not even worth $500, you might be able to decide Fair Market Value or FMV via the Kelly Blue Book, but you will still want a receipt from the organization. You might have to fill out a specific form to turn in along with your taxes in the event that your vehicle brought in is sold for over $500.00. This form is known as IRS Form 8283. You should be able to pick up this form at the IRS website too. At the time you hand over the vehicle's title to the organization, make sure to fill out the title change form in it's totality. If you do not do this and the vehicle is utilized in criminal activity, or someone is issued a citation, you may still be on the hook. If the organization demands you to provide a blank title when you go to turn over the vehicle, do not donate it to that charity. Make sure you document each detail and maintain decent records when donating your vehicle to a charity. You will wish to take photos of the vehicle and keep a copy of the completed title change form, evidence that you donated the vehicle, and the receipt from the organization in a safe area. If the IRS decides to audit you, this information might be helpful and important to have. Moreover, donating your car is a great way to help out an organization, but you will also want to benefit from it the most you can. Article Source: http://EzineArticles.com/5027713