Donation For Charity

Car donation to charity is a way for people to get rid of an old vehicle, help others in need and acquire a tax deduction all in one. The first thing to know is that there are many sources on the Internet with information to help with a decision as well as to help with the process. An Internet search will show that there are many charitable organizations that accept a car donation for charity and there are also online service companies that will handle the process. A car donation for charity is a great way to help people out who need a vehicle for everyday things like getting to work or taking their kids to the doctor.

Although it is wise to check with a tax professional, this type of donation is tax deductible if the group that is making the car donation to charity is a non-profit 501C3 organization. Generally speaking the IRS will allow the person to claim the fair market value of the vehicle up to $500 unless the vehicle sells for more and then a person may claim more after receiving a tax receipt stating the car donation for charity. The IRS has revised their policy and tax deductions from 2004 to 2005 so to learn more about these revisions read Publication 4303 from the IRS.

Most charities will accept donations of cars, trucks, trailers, RVs and boats. Non-profit organizations usually will accept car donations for charity whether the vehicle is running or not. The owner must have a clean title. In other words the car must be paid up and there must not be any liens on the title in order to make the car donation for charity. This is an example of how Christians can follow Jesus teachings when he says "Verily I say unto you, Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me." (Matthew 25:40)

It is important to decide which of the non-profit organizations the vehicle will go to. True charitable organizations will have proof of their 501c3 government status, which allows them to accept donations of any kind tax free. The first step is to submit an application to make the car donation to charity. Once accepted most services or organizations will arrange to have it picked up. Making a car donation to charity is a simple way to get rid of a vehicle, obtain a tax deduction, and help those in need.

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