How to donate car to charity guide

If you’ve a auto that is simply cluttering up your driveway, or maybe it might cost more to patch up the auto than it’s really worth, you might want to donate a car and get some money back.Giving your auto also lets you have a tax deduction come that time of year, so a method to get that money and deduction is by giving your vehicle to charity. Start checking out charities that interest you and that are willing to accept your car. Spiritual groups that qualify as charities are the best place to start looking, but whatever you choose, ensure the group is non-profit and a 501 ( c ) ( 3 ) organization. This implies that they will be exempt from some federal taxes. When you have a charity under consideration, call or stop by to learn the steps you’ll need to take to donate a junked car to charity. They might also tell you what to do with the title of the auto, but if not, make efforts to check with your local vehicle dep. about charitable donations.Make sure you give the keys with the car, and you get an invoice in return. The donation receipt should have the name of the charity, the date of donation, the Fed tax identification number of the charity and your full name and address. Once the auto sells, you will be told by the organization. If for some reason you don’t want to go the charitable donation route, you can try selling to a junk yard. Some auto yards pay money for automobiles with no regard for performance. Just ensure that you always get a bill of sale at the end of exchange.

If Santa left you a shiny new bike under the tree this year, or if you’re taking advantage of some of the great sales going on right now, you may want to think about the benefits of donating your old motorcycle to charity.  

Benefits of donating your cycle:

 

But donation may not be right for everyone. If your primary reason for wanting to donate your bike is to get the most money you can, donation may not be your answer. Tax laws changed in 2007, so you must deduct the “fair market value” as opposed to the “retail suggested price.” Fair market value, according to the IRS, is the price which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.” Good resources to determine the fair market value are Kelly Blue Book and Edmunds.  

Maximize your tax benefitTo receive the maximum tax benefit, make sure you choose a charitable organization where the cycle will be used “in direct furtherance of the organization’s charitable purpose.” The organization should use the vehicle for its business itself or donate it to those in need. That way you can deduct the full market value of your vehicle. 

You also need to make sure the charitable organization is one that the IRS qualifies to receive tax deductible contributions, such as churches, government agencies, nonprofit schools and hospitals, as well as organizations such as the Salvation Army or Red Cross. 

Verify with your local tax professional on how the tax laws apply to you and which tax forms the government requires. The charitable organization that you are donating to can oftentimes answer a lot of your tax questions too. 

Where to donate your motorcycleSome organizations that we found accepted motorcycles for donation include:  Rawhide, Habitat For Humanity and Cars 4 Kids. It’s worth checking to see if these organizations qualify for that “maximum tax benefit.” Cars 4 Kids even offers a free vacation voucher with your donation. Approximately 2-4 weeks after you donate your cycle, you will receive a voucher for a 2-night, 3-day hotel stay at one of over 80 resort areas across North America.

Before you choose an organization, make sure they service your area. Most of them will pick up your vehicle right at your house – whether it’s running or not. Check to see if there is a cost to tow it or if that will be deducted from your value; most of the time it’s free. Need someone to ship your motorcycle? Check out Daily Direct-HaulBikes.

Preparing your cycle for donationClean your motorcycle and put it in the best working condition you can. Have the title readily accessible as you will need that signed before transferring it to the charity. Have all sets of keys together and remove the license plate. Make sure you have the correct paperwork completed that the organization requests.

If you want to take advantage of the tax benefits in 2008, donate your motorcycle by December 31. The motorcycle does not need to be picked up by December 31, you just need to have the charity’s forms completed by then. And don’t forget, some donations require a professional appraisal, so you’ll need a fair amount of time to schedule that. 

Not enough time to claim the donation in 2008? Start the process now and reap the tax benefits in 2009!