When you choose to donate a car, you are practically opting to hit two birds with one stone. For one, it’s sure-fire way of getting a tax deduction bonus. Of course, you would also be able to significantly help various people and organizations in need with your donation.
If you’ve been meaning to donate a car yourself, know that you don’t need to have any reservations regarding the entire process as
it’s very simple, to say the least.
For instance, if you want to donate cars in MA, there are a lot of reputable charitable organizations in your area. Nonetheless, we would have to stress on the word “reputable”, though, because it is not entirely a surprise nor a secret that there are a lot of bogus charities operating everywhere.
Also, it’s already a no-brainer that you should itemize the deductions on your tax returns as it ensures that you would get the optimum tax benefit for it. When in doubt, just remember the tips we have outlined below.
Important Reminders to Keep in Mind for Every Car Donor
1. Find the time to research about prospective, verified charities in your area.
Most qualified charities orient and guide their donors regarding what they need to do. What’s good is that, for most states, the donating process is pretty easy and straightforward.
The good ones have websites that make their qualifications readily available to visitors and where the step-by-step method on how to donate cars to them is outlined clearly and completely.It’s important that your car finds its way to a verified organization, especially if you mean to make the most out of its tax deduction benefit.
A good gauge of the qualifications of a charity is if it’s recognized as tax-exempt by the IRS. You need only to invest time in contacting the Public Charities Division to confirm this. Another excellent and easier way of doing this is to simply visit the official website of the IRS, and view IRS Publication 78.
Take note that there are certain organizations that aren’t necessarily tax-exempt but could still provide you with a tax deduction advantage. These include churches, temples, governments, and synagogues, to name a few.
2. Make sure that you have prepared the needed requirements beforehand.
The most common requirement that a donor should have is the title of the vehicle. Any proper and reputable charity wouldn’t be too keen on accepting a car donation if it doesn’t have an accompanying vehicle title, which confirms your ownership of the vehicle.
It’s equally your responsibility to transfer the title to your chosen charity. You would usually be asked to enter the accurate mileage of the car as you go through the said process. If you have signed documents from a professional appraiser that could confirm your car’s worth, then don’t hesitate to present it as well.
A detailed description or photograph of the car may not be a requirement, but these are certainly good to keep as records in the long run, especially if issues ever arise.
3. Make other important inquiries.
Besides getting to know your intended charity more and determining the fair market value of your car, make sure to ask what they will do to your car as well. Most charities simply give to people who are in dire need of financial or vehicular aid, while others sell the car or its separate parts.
They use the funds in order to fulfill their organization’s mission. It also wouldn’t hurt to know how the money would be donated, and how it will be split between the charity and the organization it seeks to aid. Lastly, ask for a certification, which acknowledges your donation, from the charity if it’s not already been given.
Only those organizations that readily give answers and documents you ask for could be deemed as worthy of your time and donation. What’s certain from these facts is that it’s not at all difficult to donate cars in MA if you just find the time to know the common hurdles and proper steps to take.
And for the amount of benefits that you can derive from it (not only financially but personally and socially as well), it’s still very much worth doing.