Posts Tagged ‘donating a car’


What You Should Look For While Donating a Car

Tuesday, October 25th, 2011

There are few things, which should be kept in mind when you are donating a car. Firstly, you have to choose a charity for donating a car. This charity must be approved by IRS as per 501(c)(3), so that you can get IRS tax deductions for donating a car. When you are donating a car it is a good idea to ensure that the car donation center is not too far away from your house as that will make dropping the car very difficult. If you are donating a car then you should also assess the condition of the car. When you are donating a car and it has been unused in your garage for months or even years, it is likely to be unwashed and probably not in a drivable condition either.

 

It is a good idea to make sure before donating a car that it should be in a drivable condition. If it is not in a drivable condition, then you need to inform the charity at the time of filling the form for donating a car. You can request for free pickup or towing service from the charity while donating a car, if the car is not in a drivable condition or if you are too busy to drop the car yourself. When you are donating a car you must make sure you have the certificate of title to transfer the ownership of the car. You must inform the charity if you have lost the certificate of title but can still prove ownership of the car, while donating a car.

 

The fair market value of car should be assessed before donating a car. In other words, you should know what the car is worth when you are donating a car, as you would be claiming for tax deductions equivalent to that amount. When you are donating a car and the value of the car is below $250, you do not need a detailed written acknowledgement. However, when you are donating a car whose value is above $500, then you will need a written acknowledgement from the charity. This provides a good faith estimation of the car backed by a sale statement if the car was auctioned in charity. When you are donating a car to a charity which intends to use the car for its own purpose, then the written acknowledgement should confirm the use the car will be put to.