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Guide to donating Your Car to Charity
One of the ways in which you can help an organization is by giving your car for charity. When you give out your car, you will save a lot, more so when you offer it to a charitable organization. When donating your car, it is a good idea to practice causation to avoid getting in the hands of fraudsters in the industry. The trick most fraudsters use is false advertising which many car owners fall victims. Car owners wishing to give their vehicles for charity need to ensure that the organizations they are working with is legit. In this article ,we will take you through the guide to donating your car for charity.
First and foremost, you need to research the charity you want to work with. When searching, you may want to check if it has 501(c)(3) non-profit status with the IRS. When the organization does not have the status, it means that it is not a charity and that your donation is not tax-deductible.
When searching for a charity organization, ensure that you are choosing is an efficient one. When searching for charities, you will find that there are many of them. Before you can decide to partner with a charity, ensure that it is evaluated and rated by a board of charity organizations.
People who want to donate their vehicles need to itemize their properties on their returns. The reason why car owners wishing to give their vehicles for donation need to itemize their deduction is to enable them take tax deductions for their donations. When you want to claim, you need to observe certain rules. According to the rules, taxpayers are allowed to deduct the full market value of a donated car under three main circumstances. First, the charity organization needs to use the vehicle in its operations. The other condition in which you can deduct the full market value of the car us when the charity decides to move the car to sell or use it. In the event the charity organization you are working with donates or sells it to a needy person for below market value, you can get the full market value of the car you donated. Car owners who do not meet the three main conditions will have to deduct the amount the charity organization will receive from selling the vehicles. One of the beneficiaries of car donation is Rawhide Youth Services.
Before you can donate your car, make sure that the charity is licensed. The beauty of checking if the charity you want to partner with is licensed is that you will know if the charity is legit or not.