To donate car to charity is the simplest way to get rid of that old car in your garage. More people are finding that when they donate car to charity, they are not only helping the charities fund their charities but a lot of benefits come with it as well. There are a lot of charitable institutions to choose from in different states, but not all of them are the same, so it is important that you do a little background research first. You will find out that each of them have different goals, so choose your charity carefully.
Charities that qualify
When you are planning to donate car to a charitable institution, check first if they are legal. Check first with the IRS if the charity is listed under Section 501(c)(3) in the IRS Publication 78, which is available in most public libraries. This section refers to non-profit organizations that will entitle you to a tax deduction.
Background checks
See if the used car donation program of that charity is being run by the charity itself or by third parties. If a third party is running the program, check how much of the profit is actually going to the charity. Most of the time, charities run by third parties are only receiving a small amount from the total earnings because their agents take a large percentage.
Why is there a third party involved?
Smaller charities tend to be run by third party brokers since they cannot afford the costs of towing and storage for the used donated cars, and the funds needed for charity auctions. This is the reason some charities have third party brokers run their car donation programs.
History of the charity
Before you make a donation, check with authorities like the Better Business Bureau on what the charity does with the money they are earning. The Bureau requires that at least 50% of a charity's earnings be used for projects and activities directly related to the charity's goals.
Your tax deductions
Getting tax deductions is one of the main reasons why people prefer to donate car to charity. The fair market value of your car is equivalent to the amount of tax deductions you can get when you donate your car to charity.
Consult with your tax advisor
If you are serious about the tax deductions, consult with your tax advisor regarding the matter. You can also determine the value of your used car when you check for its Blue Book value. That way, you can see how donating your car to charity can really benefit you and your taxes.
There are a lot of charities across the nation but remember that even in making donations, you must choose your charity wisely to avoid any regret. Charities like the Children's Wish Foundation (http://www.childrenscharity.org) have a vehicle donation program that you can participate in. Our charity is known for granting the wishes of children with cancer and our work is being recognized internationally.
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