Car Donation: The Charity That Saves Money
Wednesday, December 2nd, 2009
Car donation can be a godly act while saving you quite a few dollars in tax money. Donating your car to charity frees you from all the hassles of selling it. You also get a tax deduction based on the value of your car. Charity could never have been better…
Maximize Your Help
However, there are some things you need to consider before you take the plunge. The capitalistic economy and rising competition has not even spared charitable institutions. People have entered into charity with the proposition of business. There are various ways by which people cheat the donators of their charity money. Let’s look at what you really need to know:
1. Avoid middlemen at all costs: there are a number of for-profit organizations which offer assistance in donating your car to charity. However, these organizations generally keep upto 50 to 90 percent of the money made after auctioning your car. The money originally intended for charity ends up in the pockets of businessmen.
2. Do background checks: It is essential that you donate your car to a reputable charity. Do not just randomly select a charity organization. Make sure to make proper background checks of the charity before you hand over your vehicle.
3. IRS approved: Your car donation will only qualify for tax deduction only if the donation is made to an IRS-approved 501(c) (3) organization. If tax deduction is one of your concerns, make sure you visit the website of internal revenue service to find qualifying organizations.
4. Deliver the car yourself: Some charitable organizations charge money for home pick up of your donated cars. You should enquire about this initially or best of all, deliver the car yourself.
5. Get the receipt: Incase your car value is more than $500, it is essential you get a receipt from the charitable organization stating the same. This is important if you are looking for a tax cut.
Become a Good Samaritan
All the above points will help you in making sure that your charity remains true and it reaches the needful. Even if saving on your tax dollars is a prime concern, car donation gives you the best of charity and savings.