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/