Used Car Donations – Considerations to be Aware of
If you are looking to make used car donations then there are several things you should be aware of before going through with the process. On the whole, used car donations are a very beneficial practice and it makes sense to make used car donations as not only are you helping society, but also through your used car donations you are getting tax benefits. In the year 2010, nearly a million Americans made used car donations and saved nearly $800 million in tax deductions. It is twin win situation for all involved in the process.
Cars are very important in our every day life and they have gone from being a luxury to a necessity. However, once you have owned a car for a long period of time the quality of the car deteriorates and the services it provides becomes less and less. So then the need for buying a new car arises. What happens to the old car? Usually in most houses it ends up in the garage uselessly and becomes a home for all types of insects. You can’t even bring yourself to sell it because the price you will get for a car that has been used for a long time is far lesser than what you bought it for. This is where car donation comes into play.
Making used car donations is financially more beneficial to you as a US citizen because the laws here allow you to donate your used car to a charitable organization and then reap the benefit of a tax deduction. This is a very big advantage for those who have old, used cars lying around. There are several things you should consider and keep in mind before making the donation to make sure you get tax benefits however.
Tips For Making Used Car Donations
There are several charitable organizations out there which take used cars and better the society through different ways. Some organizations directly donate the car to a person who is need and some organizations sell the car for a fair market value and use the money for various noble causes. Many charitable organizations are directly linked to helping in cancer research, building shelters for the homeless, etc.
There are some things you should keep in mind before donating your car however. Firstly, never donate your car through another organization. These middle men sell the car and only donate approximately 30% of the value to the charity. This does not count for tax deduction. Secondly, make sure you turn the ownership over to the charity so that in the future, any speeding tickets, parking tickets or other traffic violation charges don’t find their way to you. Thirdly, make sure the organization you are donating to has an IRS approved 501 © 3 rating.
There are many non profit organizations without it and the difference is that without this rating your used car donations are not eligible for tax deductions.
If you keep the above tips in mind then you are sure to have no problems when making your used car donations and helping to make society a better place.