Check the Tax Status of the Car before Donating

You might be interested in car donation, but you should consider few points before actually heading for this step. When you are donating your car, you need to focus mainly on the recipient charity, tax deductions, and transfer papers. Most of the people are unaware of the tax benefits they get from this kind of donation. In order to encourage donations and social service, government in most of the countries offer tax deductions.

Ask the Charity Organizations: If you are donating your car to a charity, make sure that you ask the organizers of the charity if they are 501 (c ) (3) organization or not. You need to know that only charities which have this kind of designation will be able to provide you tax benefits. In few countries, the number of this designation will be different, but certainly there will be authorization from government to accept such kind of donations. Every charity organization can’t accept them. Only those authorized from government can accept car donations. Hence you have to check for this authorization before deciding where to donate a car for charity.

Take Charity’s Determination Letter: You will get the tax benefits on car donation only when you are having determination letter from charity. This is the letter given to you by charity up on receipt of the car as charity. You have to take it necessarily and have to preserve it carefully forgetting tax benefits. Make sure that the papers are in order.

For more details visit at http://www.donatemyvehicles.org/

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General Guidelines for Those who want to give their Car on Charity

Nowadays more number of private donors are coming forward for car donations as a part of charity. According to the reports on IRS, as many as 7,50,000 people availed car donation deduction in their taxes in 2000. It has been already ten years and hence the number might have increased drastically over the due course of period.

Even though the regulations of car donation have been tightened and after adopting tougher guidelines, the number of people going for car donations is on rise. Here are few guidelines for all those who are want to go for this kind of donation:

Go to the Charity which Accepts Car Donations: You need not advertise, I want to donate my car to charity, when you want to do so. You can just go to few charities which can accept such kind of car donations. Remember, all the charities or trusts will not be ready to accept them. Only those which are authorized to receive can accept them. Special permissions are required from government to accept such donations.

Drive your Car to the Designated Spot: When you are donating your car, you shouldn’t ask the charity authorities to come and collect the car. It doesn’t prove to be good manners. If you have time, you should go out and drive your car to the designated drop off place. This will show your respect towards the cause and charity. There are many charities who advertise ‘donate a vehicle to charity’ slogan and hence finding the right charity should not be a problem for you.

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